Ola Electric is leading the Indian electric two-wheeler (EV 2W) industry in terms of margins and is headed toward profitability, according to a recent research by international brokerage Bernstein. Ola Electric’s remarkable financial performance is highlighted in the analysis, which examined the margin profiles of the top EV manufacturers in India for Q1 FY2025 (except from Ather, which is for FY2024).
Ola Electric’s Benefit from Margin
Bernstein’s analysis shows that Ola Electric outperformed rivals like TVS (14%), Bajaj (12.3%), and Ather (7%), with a gross margin of 18.4% over the examined period.
How to Become Profitable
Ola Electric, which achieved an EBITDA margin of -2% in the quarter under study, is getting close to reaching EBITDA-level profitability, according to Bernstein’s assessment. They are now ahead of rivals like Ather (37%), Bajaj (-10.4%), and TVS (-7.9%).
The production of EVs differs greatly from that of conventional cars. The analysis states that Ola Electric has an advantage in both technology and vertical integration, which are critical components in the road to profitability for EVs.
Optimistic outcome from Investment Banks
Goldman Sachs and Bank of America began covering Ola Electric shares last week, both recommending a “buy” price. Bank of America has a target price of Rs. 145 per share, while Goldman Sachs has put its own at Rs. 160 per share.
Citing positive long-term trends in the Indian EV sector, Goldman Sachs believes Ola Electric is well-positioned for significant expansion. Ola Electric’s technological innovations and cost leadership are cited by Bank of America as important factors contributing to its success.
Click Here to get the latest EV news and exclusive updates from EV Mechanica on WhatsApp!