Ola Electric shares surge 18% as company enters e-motorcycle segment
What's the story
Ola Electric, a prominent player in India's electric two-wheeler industry, has witnessed a significant rise in its share value.
The company's stock surged by 18% to ₹131 per share at the time of writing.
This increase comes on the heels of Ola Electric's expansion into the electric motorcycle segment with the introduction of three new models: Roadster X, Roadster, and top-end Roadster Pro.
Product launch
Ola Electric unveils new models and pricing
The newly launched Roadster X, Roadster, and Roadster Pro electric motorcycles are priced starting at ₹74,999, ₹1,04,999, and ₹1,99,999, respectively.
The Pro model has a street naked design, in line with the last year's concept model.
It boasts a top speed of 194 km/h and will deliver an impressive range of 579km on a single charge.
The zero-emission bike also comes equipped with ADAS safety features and a 10-inch touchscreen for navigation and controls.
EV penetration
Ola Electric's future plans and market strategy
Bhavish Aggarwal, founder and CMD of Ola Electric, stated at the company's launch event on Thursday, "With Ola's entry into this segment, the penetration of electric vehicles (EVs) in the two-wheeler market is set to accelerate even further."
He also revealed plans for integrating their battery technology Bharat Cell into their vehicles from Q1 FY26.
This move is part of a broader strategy to stimulate widespread EV adoption across India.
Financials
Ola Electric's financial performance and market share
Despite reporting a consolidated loss of ₹347 crore for Q1 FY25, Ola Electric saw its revenue from operations rise to ₹1,644 crore.
This increase was driven by a significant surge in sales with June marking the company's highest-ever deliveries at 1,25,198 units.
Aggarwal revealed that Ola Electric's market share during this quarter reached a record 49%, indicating strong consumer demand for their products.
Growth prospects
Ola Electric's operational efficiency and market outlook
Ola Electric has managed to narrow its EBITDA margin losses to 1.97% from 8.29% due to increased operational efficiency and supply chain optimizations.
The company received its first "buy" recommendation from HSBC, which set a target price of ₹140 for the stock.
Despite concerns about slow EV adoption in India and market competition, HSBC views Ola Electric as a worthwhile investment due to ongoing regulatory support and cost reduction capabilities.