Ola Electric to grow revenue 2.5x faster, volumes 5x faster over next 3 years: Goldman Sachs

Goldman Sachs report also says that Ola Electric’s product roadmap is a key catalyst for the buy rating.

International brokerage firm Goldman Sachs, on September 17, stated that it expects Ola Electric's revenue to grow 2.5 times faster and its volumes to increase 5 times faster over the next three years compared to its peers in India's two-wheeler market, driven by the company’s strong focus on the rapidly expanding electric two-wheeler segment.

The brokerage firm has also initiated coverage on Ola Electric and has given a buy rating with a target price of Rs 160 apiece, which is a 50% upside to its current stock price.

The stock is currently trading at Rs 110 apiece as of 9.45 am.

“We forecast Ola Electric to grow its revenues more than 40% annually over FY24 to FY27E, vs +16% / +19% / +10% for TVS Motor / Bajaj Auto / Hero MotoCorp. We estimate a +57% annualized volume growth over FY24-FY27E for Ola Electric, vs +9% / +12% / +6% for TVS / Bajaj / Hero respectively,” the report said.

The firm reported a net loss of Rs 347 crore, which widened by around 30 percent year-on-year . Its consolidated revenue from operations rose 32 percent to Rs 1,644 crore as against Rs 1,243 crore in Q1FY24, showed the company's filings on BSE on August 14.

Market Leadership Advantage

The company has been able to maintain its market leadership position supported by its value-for-money proposition and lower running cost per km.

In August, Ola Electric’s market share was at 31 per cent and it still remains ahead of its competitors, with cumulative sales of 297,695 units over eight months.

Goldman Sachs report also says that Ola Electric’s product roadmap is a key catalyst for the buy rating.

“OLAE’s Electric motorcycle portfolio roll out starting March quarter 2025 and entry into another new fast growing market (electric 3Ws in mid CY25 are catalysts,” the report says.