According to a recent study by global brokerage Bernstein, Ola Electric is leading the Indian electric two-wheeler (EV 2W) market in terms of margins and is on the verge of profitability. The report, which looked at the margin profiles of the top EV manufacturers in India for Q1 FY2025 (except from Ather, which is for FY2024), highlights Ola Electric’s outstanding financial performance.
Ola Electric’s Margin of Advantage
With a gross margin of 18.4% over the studied period, Ola Electric outscored competitors including TVS (14%), Bajaj (12.3%), and Ather (7%), according to Bernstein’s analysis.
How to Turn a Profit
Bernstein’s analysis indicates that Ola Electric, which recorded an EBITDA margin of -2% during the studied quarter, is approaching EBITDA-level profitability. As of right now, they lead competitors like TVS (-7.9%), Bajaj (-10.4%), and Ather (37%).
EV manufacture is very different from traditional automobile production. According to the report, Ola Electric has an advantage in both vertical integration and technology, which are essential steps on the path to EV profitability.
Positive response from financial institutions
Last Monday, Goldman Sachs and Bank of America started covering Ola Electric stock and both suggested a “buy” price. Goldman Sachs has set its target price at Rs. 160 per share, while Bank of America has set its at Rs. 145 per share.
Ola Electric is positioned for tremendous expansion, according to Goldman Sachs, which cites good long-term trends in the Indian EV business. Bank of America lists Ola Electric’s cost leadership and technical advancements as key elements in the company’s success.
