1. At a Glance
Ola Electric, India’s largest electric 2-wheeler player with a 31% market share, just posted a ₹428 Cr quarterly loss while chasing IPO dreams and lithium-ion fantasies. It’s riding high on vision, but low on cash flow and even lower on patience from investors.
2. Introduction with Hook
Imagine building a rocket, aiming for Mars, but realizing halfway you forgot to pack oxygen. That’s Ola Electric. The company sold over 3.3 lakh scooters in FY24, commands one-third of the Indian e-scooter market, and built the world’s largest 2W EV factory. Yet somehow, it’s burning cash like a Diwali firecracker factory.
- FY24 revenue: ₹5,010 Cr
- FY25 (TTM) losses: ₹2,357 Cr
- ROE: -108% (yes, that’s a negative three-digit number)
3. Business Model (WTF Do They Even Do?)
Ola Electric is building:
- Electric Scooters (E2W): Currently leading this vertical in India
- Battery Packs & Motors: Manufactured in-house at Ola Futurefactory
- 4680 Cells: Gigafactory dreams in Tamil Nadu
- Hypercharging Network: 10,000+ fast chargers promised, only 2% delivered
- Software: Full-stack approach, OS for scooters, AI-based diagnostics
In short: Apple + Tesla + Jio, but in a scooter shell.
4. Financials Overview
Let’s talk numbers that scare accountants:
| FY | Revenue (₹ Cr) | Expenses (₹ Cr) | EBITDA (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|---|---|
| 2021 | 1 | 278 | -277 | -199 |
| 2022 | 373 | 1,174 | -800 | -784 |
| 2023 | 2,631 | 3,883 | -1,252 | -1,472 |
| 2024 | 5,010 | 6,276 | -1,266 | -1,584 |
| 2025 | 4,514 (TTM) | 6,253 | -1,739 | -2,357 |
Losses double every few quarters like it’s a startup ritual.
5. Valuation
Let’s be kind. Ola Electric’s market cap is ₹20,778 Cr.
Valuation methods:
- EV/Sales (TTM): 4.6x (very high for negative profit)
- Future Potential (Aggressive DCF): ₹15,000–₹25,000 Cr
- Peer Comparison (e.g., Ather, TVS Electric): ₹13,000–₹18,000 Cr
Fair Value Range: ₹32 – ₹55/share
(If you like thrillers with unpredictable endings)
6. What’s Cooking – News, Triggers, Drama
- IPO Drama: Raised funds, now burning faster than toast in a college hostel.
- Q1 FY26: ₹828 Cr revenue, 68,000+ deliveries, ₹237 Cr EBITDA loss
- Debt Plans: ₹1,700 Cr new borrowing planned
- Gigafactory Update: 4680 cells R&D live; production… pending
- Cash Flow Neutrality: “Near” is a favourite word in the management deck
7. Balance Sheet
| Item | Mar ’21 | Mar ’22 | Mar ’23 | Mar ’24 | Mar ’25 |
|---|---|---|---|---|---|
| Equity Capital | 0.01 | 1,955 | 1,955 | 1,955 | 4,411 |
| Reserves | 1,971 | -98 | -1,409 | -2,909 | 732 |
| Borrowings | 42 | 2,608 | 3,505 | 5,684 | 3,556 |
| Total Liabilities | 2,113 | 5,396 | 5,573 | 7,735 | 11,075 |
| Fixed Assets + CWIP | 147 | 1,108 | 1,726 | 3,204 | 3,856 |
| Investments + Cash | 549 | 1,102 | 276 | 64 | 40 |
Key Points:
- Raised massive equity, yet reserves remained negative until FY25.
- Balance sheet inflated with debt and promises.
8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | CFI (₹ Cr) | CFF (₹ Cr) | Net Cash Flow (₹ Cr) |
|---|---|---|---|---|
| 2021 | -252 | +549 | +3 | +300 |
| 2022 | -885 | -1,322 | +3,085 | +878 |
| 2023 | -1,507 | -319 | +659 | -1,167 |
| 2024 | -633 | -1,136 | +1,590 | -179 |
| 2025 | -2,391 | -2,864 | +5,429 | +174 |
They spend more on “investing” than your neighbour’s crypto portfolio. Cash flow positive? Only in PowerPoint decks.
9. Ratios – Sexy or Stressy?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROCE (%) | -30% | -32% | -28% |
| ROE (%) | -75% | -81% | -108% |
| OPM (%) | -48% | -25% | -39% |
| Interest Cover | <1x | <1x | <1x |
| D/E Ratio | 1.7x | 2.9x | 0.8x |
Key Point: Ratio section is a crime scene. ROE is missing, profitability is a myth, leverage is high, and margins are in hiding.
10. P&L Breakdown – Show Me the Money
| FY | Revenue (₹ Cr) | OPM (%) | EBITDA (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|---|---|
| FY23 | 2,631 | -48% | -1,252 | -1,472 |
| FY24 | 5,010 | -25% | -1,266 | -1,584 |
| FY25* | 4,514 (TTM) | -39% | -1,739 | -2,357 |
*Data till Mar 2025. Q1 FY26 already adds ₹428 Cr more to the misery.
11. Peer Comparison
| Company | Revenue (₹ Cr) | PAT (₹ Cr) | ROE (%) | Market Cap (₹ Cr) | PE Ratio |
|---|---|---|---|---|---|
| Bajaj Auto | 50,994 | 7,325 | 22.84% | 2,25,980 | 30.85 |
| Eicher Motors | 18,870 | 4,734 | 24.07% | 1,52,293 | 32.17 |
| TVS Motor | 44,089 | 2,207 | 28.88% | 1,33,336 | 60.40 |
| Hero MotoCorp | 40,923 | 4,376 | 23.67% | 85,128 | 19.46 |
| Ola Electric | 4,514 | -2,357 | -107.57% | 20,778 | N/A |
Ola’s valuation suggests Tesla. But performance suggests Lehman Brothers.
12. Miscellaneous – Shareholding, Promoters
| Holder | Mar 2025 |
|---|---|
| Promoters | 36.78% |
| FIIs | 2.89% |
| DIIs | 2.93% |
| Public | 52.14% |
| Others | 5.27% |
- Shareholders: 16.7 lakh
- Retail-heavy, low institutional confidence
- No dividends, just vibes
13. EduInvesting Verdict™
Ola Electric is the classic Indian unicorn dilemma: ambition, scale, and storytelling on one side, versus operational efficiency, profitability, and discipline on the other. The scooters are selling, but margins are melting faster than ice cream in Chennai summer. The factory is the size of 500 football fields, but the financial runway is thinning.
Is it a future Tata Motors EV success story? Or another WeWork saga in scooter skin?
We’re watching… with popcorn and a fire extinguisher.
Metadata
– Written by EduBot | 14 July 2025
– Tags: Ola Electric, EV Stocks, IPO Drama, Unicorn Burn, 2W Sector, FutureFactory, Gigafactory India
