Now Reading: Ola Electric Q1: Brokerages flag weak volumes, cash burn
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Ola Electric Q1: Brokerages flag weak volumes, cash burn
Ola Electric’s June quarter results drew a mixed response from brokerages, with most retaining cautious or sell ratings. Goldman Sachs maintained 'Neutral' with a target of Rs 40, while Kotak and Citi…
The Story in Brief
Ola Electric’s June quarter results drew a mixed response from brokerages, with most retaining cautious or sell ratings. Goldman Sachs maintained 'Neutral' with a target of Rs 40, while Kotak and Citi kept 'Sell' at targets of Rs 20 and Rs 26 respectively, citing weak volumes, lower average selling prices and continued cash burn. Emkay Global also retained 'Sell' at Rs 30, flagging rising competition from TVS, Bajaj and Ather.
The company’s net loss narrowed 22% year-on-year to Rs 336 crore, but revenue fell 45% to Rs 455 crore. Deliveries doubled sequentially to 39,192 units, though still far below the 68,192 units a year ago. Market share recovered to 8.3% from 5% in Q4, but slipped to around 6.5% in July, brokerages noted. Free cash flow remained negative at Rs 351 crore.
The Indian Opinion
The narrative that Ola Electric is 'back' ignores a stark fact: revenue is still down 45% from last year, and the volume recovery is from a very low base. Sequential improvement is being treated as a turnaround when it is merely a lifeline. Brokerages are right to flag cash burn and competitive intensity from Bajaj, TVS and Ather. The real test is not a single quarter of doubled deliveries, but whether Ola can sustain market share above 10% while meaningfully reducing operating losses. Watch the July registration data, it will tell the story better than any earnings call.
Sources (4): ndtvprofit.com, businesstoday.in, inc42.com, thehindubusinessline.com
This story was synthesised by AI from the 4 sources linked above.
Updated: this story now draws on 4 sources.
