Ola Electric shares rise 3% as Bernstein highlights robust growth prospects

Ola Electric shares have slipped 16 percent in the past month.

Shares of Ola Electric Mobility surged over 3 percent to Rs 107.5 in morning trade on September 25 after international brokerage Bernstein suggested that the company is accelerating its lead in the electric two-wheeler (EV 2W) segment, outpacing competitors in profitability.

The report reveals that Ola Electric not only boasts the highest gross margins among its peers but is also closing in on EBITDA-level profitability, underscoring the company’s strong growth trajectory.

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Ola Electric has significantly improved its path to profitability, reporting an EBITDA margin of -2 percent, outperforming rivals such as TVS (-7.9 percent), Bajaj (-10.4 percent), and Ather (-37 percent). Bernstein credits Ola's competitive advantage to its aggressive localization, vertical integration, and direct-to-consumer (D2C) model. Access to government subsidies like PLI and FAME has also strengthened its financial position, the analysts said in a recent note.

Ola's leadership in the EV market is further supported by its technological innovations and strategic investments. The company has invested around $1 billion in developing its EV ecosystem, giving it a substantial lead over competitors now grappling with the challenge of scaling up.

At about 9:30 am, shares of the company were trading at Rs 106.5, higher by 2.2 percent from the last close on the NSE. Ola Electric shares have slipped 16 percent in the past month.

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