Shares of Ola Electric Mobility rallied over 3 per cent to Rs 107.5 in morning trade on September 25 after international brokerage firm Bernstein suggested that the company is extending its lead in the electric two-wheeler (EV 2W) segment and outpacing rivals in profitability.
The report shows that Ola Electric not only boasts the highest gross margins among its competitors but is also inching closer to EBITDA level profitability, underlining the strong growth momentum of the company.
Ola Electric has significantly improved its path to profitability, reporting an EBITDA margin of -2 per cent, outperforming rivals such as TVS (-7.9 per cent), Bajaj (-10.4 per cent) and Ather (-37 per cent). Bernstein attributes Ola’s competitive advantage to its aggressive localisation, vertical integration and direct-to-consumer (D2C) model. Access to government subsidies such as PLI and FAME have also strengthened its financial position, analysts said in a recent note.
Ola’s leadership in the EV market has been further strengthened by its technological innovations and strategic investments. The company has invested nearly $1 billion in developing its EV ecosystem, giving it a substantial edge over its competitors who are now grappling with the challenge of expansion.
At around 9:30 am, the company’s shares were trading at Rs 106.5 on the NSE, up 2.2 per cent from its previous close. Ola Electric shares have fallen 16 per cent in the last one month.
