Introduction
With growing worries over climate change, most countries are embracing alternative energy forms instead of fossil fuels. Almost all governments around the world are making effort by supporting renewable energy sources. It’s been achieved in India, where it emphasized reducing air pollution by embracing ola electric vehicles. This has not only reduced their use of fossil fuels but also decreased crude oil imports from other countries, which can serve to reduce trade deficits. Being a self-driven IITian, it proved to be an opportunity for the launching of a company in electric two-wheelers called Ola Electric; its idea has fast taken up a massive market share.
In this article, we’ll explore Ola Electric, its business operations, financial performance, and plans for the future, highlighting why it has become a promising growth stock.
Company Overview: Ola Electric
Established in 2017, Ola Electric designs and manufactures a full stack of integrated technology and components for electric vehicles at its state-of-the-art in Ola Future factory. The firm offers a range of two-wheelers like the Ola S1 Pro, S1 Air, S1 X, and S1 X+. Recently, the firm has introduced four motorcycles in the country, including Adventure, Diamondhead, Cruiser, and Roadster. Roadster e-bikes start at a price of ₹75,000 and go up to ₹2 lakh, and deliveries are said to be initiated in the first half of 2026.
The D2C business model of Ola Electric passed over a significant manufacturing base and retail platform. With an enormous charging network, sales, and service centers, Ola Electric has ground for India, running over 870 experience centers and 431 service centers.
Ola Electric has 34.80% E2W market share, FY24. From FY23, it was at 21% and FY22 at 5.7%, hence highly good growth has been carried out.
Founder of Ola Electric: Bhavish Aggarwal
Bhavish Aggarwal is a B.Tech. from IIT Bombay. He started at Microsoft, then flipped the trajectory and came together with other entrepreneurs to launch Ola Cabs in 2010. Then, with the help of investors like SoftBank Group and Tiger Global Management, Bhavish Aggarwal developed Ola Electric, which today is the front runner in electric two-wheelers in India.
Industry Overview: EV Market in India
India is a big automobile producer with over 28 million vehicles every year, with two-wheelers accounting for 15-20% of the global production. The electric vehicle segment assumes significance in this direction, and the PLI scheme of US$52 billion will extend incentives to meet the goal of net-zero by 2070. Likewise, states have also exempted road tax on EVs, and this makes an electric two-wheeler the obvious choice in the current scenario.
India is also targeting higher value additions to its manufacturing GDP, which is currently at 35% of the total GDP. As the country continues to focus on EV growth, the two-wheeler industry value is pegged at ₹1.4-1.6 trillion.
Financial Overview: Ola Electric
Ola Electric was able to increase its revenue by 90.42% to ₹5,009.83 crore for FY24 and saw the loses edge down by 7.63%. While the EPS declined from₹ 3.91 in FY23 to ₹ 4.35 in FY24, the EBITDA margins bucked the trend while reporting improvements, with gross margins increasing to 12.58% in FY24 from 2.3% in FY23.
Government incentives constituted ₹97.23 crore of the operating revenues; hence, it is evident that Ola was very much in sync with standards set up by regulatory bodies and aiding its offerings of Ola S1 Pro and S1 Air.
Future Plans of Ola Electric
Ola Electric has an ambitious roadmap, including:
- Motorcycle Deliveries: To begin by the end of this financial year.
- Cell Manufacturing Expansion: Scaling from 1.4 GWh to 10 GWh.
- New Cell Chemistries: Developing LFP and LMFP cells for better performance and lower costs.
- Global Expansion: Targeting ASEAN, Africa, Latin America, and parts of Europe.
- Enhanced Vertical Integration: Focusing on in-house technology to improve gross margins and reduce costs.
Peer Comparison
Ola Electric rivals Eicher Motors, TVS Motors, Hero Motocorp, and Bajaj Auto. Ola does not have profitability but has a market share of 34.80% in the E2W segment, significantly ahead of the others. However, its EBITDA margin stands at 19.84%, which is behind, while peers such as TVS Motors and Bajaj Auto boast positive margins.
| Metrics | Ola Electric | TVS Motors | Eicher Motors | Bajaj Auto | Hero Motocorp |
|---|---|---|---|---|---|
| Market Capitalization (₹) | 60,935 | 124,963 | 134,599 | 275,135 | 105,653 |
| EBITDA Margin (%) | -19.84% | 14.28% | 33.22% | 22.60% | 15.74% |
| Gross Margin (%) | 12.58% | 37.65% | 45.69% | 28.92% | 32.49% |
| Debt-to-Equity Ratio | 1.34 | 1.97 | 0.02 | 0.07 | 0.03 |
Ola Electric has outpaced competitors like TVS Motors (19.3%) and Bajaj Auto (11.3%) in terms of market share, reflecting its strong presence in the E2W segment.
Conclusion
The wide variety of products and the D2C model have quickly positioned Ola Electric as a market leader in the Indian EV space, operating on losses at present but having a very clear strategic focus on increasing volumes and reaching out to international markets. It must never lose the product innovations and cost economic edge the established players now are heavily vying for.
Disclaimer: This article is for educational purposes only and is not financial or investment advice. Always do your own research or consult a licensed financial advisor before making investment decisions. The author is not liable for any financial loss resulting from actions taken based on this information.
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