Ola Electric Shares Rise Ahead Of Q1 Earnings Announcement

Shares of Ola Electric Mobility Ltd. surged over 2% on Monday in early trade, as investors positioned themselves ahead of the company’s Q1 earnings release expected later today. Despite expectations of continued losses, market sentiment appears buoyed by projections of sequential improvement in revenue and a notable reduction in operating losses.

According to street estimates, Ola Electric is likely to report a net loss of Rs 452 crore for the quarter, with revenue expected to reach Rs 735 crore. The company’s Ebitda loss is forecast to contract to Rs 287 crore, indicating progress in operational efficiency and cost control, compared to the previous quarter. In the fourth quarter, Ola Electric posted a net loss of Rs 870 crore, with revenue at Rs 611 crore and Ebitda loss widening to Rs 695 crore. The extent of year-on-year damage in profitability can likely be attributed to a sharp drop in demand, following subsidy changes and inventory challenges in electric two-wheelers.

Ola Electric focuses on developing and manufacturing electric mobility solutions, primarily electric scooters. Since its entry into the EV space, the company has rapidly built out its operations, establishing a large-scale manufacturing facility in Tamil Nadu and launching multiple models aimed at mass-market adoption. Despite ambitious scale-up plans, the company has faced hurdles including consumer complaints regarding service centers, cost inflation, policy uncertainties, and competition from established automotive brands and startups.

Catch all the latest news from today's Quarterly earnings on our Q1 Results Live Blog here.