Driven by moderate debt load, negative free cash flow, the company is currently loss-making.
In simple words: The company is currently losing money, but sales are shrinking. Cash generation is currently the main factor to watch.
Decision support, not a buy or sell call.
As of 18 Oct 2026, 6:07 pm
Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.
The 60-second version of Ola Electric Mobility Limited — what it does, how it earns, and who it competes with, before any of the numbers below.
What does this company do?
Ola Electric Mobility Limited develops, manufactures, and sells electric vehicles in India. It operates through the Automotive and Cell segments. The company provides electric scooters; and electric vehicle components, such as battery packs, motors and vehicle frames, and cells.
IndustryAuto Manufacturers
SectorConsumer Cyclical
Employees6,139
Annual revenue₹2,061 Cr
How does it make money?
Turns over ₹2,061 Cr a year. Of every ₹100 of sales, about ₹-89 reaches shareholders as profit, with ₹-38 left at the operating level before interest, tax and depreciation. Each of its 6,139 employees supports ₹33.6 lakh of revenue a year, the signature of a people-led business.
EBITDA margin-38.2%
Net margin-88.9%
Revenue / employee₹33.6 lakh
Who are its competitors?
The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TATA MOTORS LIMITED, TATA MOTORS PASS VEH LTD, MAHINDRA & MAHINDRA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.
MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%
TATA MOTORS LIMITEDP/E 37.1x · ROE 32.8%
TATA MOTORS PASS VEH LTDP/E — · ROE -3.0%
MAHINDRA & MAHINDRA LTDP/E 17.8x · ROE 19.7%
What is its competitive advantage?Little sign of one
Returns on capital of -29.7% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.
ROCE-29.7%
ROE-54.7%
Peer median ROE19.7%
What is the outlook?
7 analysts covering the stock expect revenue to grow about 55.5% and earnings to grow about 11.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.
Est. revenue growth+55.5%
Est. earnings growth+11.3%
Analysts7
What has been driving growth?
Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -21% while net margin moved +57% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.
Revenue effect-21%
Margin effect+57%
DalalBaazaar Score
35/ 100
Weak
Weighted across six categories. Every point is explained below.
✗ Revenue has contracted at 7.5% a year
✗ Latest-year revenue growth of -45.0% is below the longer-term trend — momentum is fading
Quality vs. Valuation
Company Quality
34/ 100
Weak
How good the business is, ignoring the share price entirely.
vs
Valuation
29/ 100
Expensive
What you are being asked to pay, ignoring how good the business is.
Weak on business quality and not cheap enough to compensate.
vs. its own history
Not enough price and earnings history
vs. sector peers
Not enough peers with a usable P/E
vs. generic bands
N/A
No P/E — the company is lossmaking
P/E (Trailing)
Not meaningful
P/B
4.62x
EV/EBITDA
—
PEG
—
Dividend Yield
None
What's Good / What's Bad
🟢 What's Going Well3
Margins are improving
EBITDA margin is up from -43.1% to -38.2% over 3 years.
Return on equity is rising
ROE has improved from -62.5% to -54.7%.
Return on capital is rising
ROCE has improved from -42.3% to -29.7%.
🔴 What Needs Attention2
Debt is rising
Total debt is up 63% over 3 years — worth checking what it funded.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Red Flags
5 items require attention · 4 high · 1 watch
🔴Debt has risen sharplyFinancial
Total debt is up 63% over 3 years, from ₹1,696 Cr to ₹2,763 Cr.
🔴Thin interest coverageFinancial
Operating profit covers interest only -4.1x — little room if earnings dip.
🔴Free cash flow negative for 4 yearsFinancial
The business has not covered its capital spending from operations for several years running, which has to be funded externally.
🔴The company is lossmakingFinancial
Net profit of -₹1,833 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -5.2x to -4.1x.
Investment Thesis
🟢 Bull CaseWhat could make this work?
Margin expansion has further to run
EBITDA margin has risen from -43.1% to -38.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
🔴 Bear CaseWhat could go wrong?
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
4 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.
🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today
1EBITDA margin holds above -40%✓ -38.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹1,493 Cr
Profit that never becomes cash eventually stops being profit.
3Interest cover stays above 3x✗ -4.1x
How much operating profit can fall before interest stops being comfortably covered.
4ROCE stays above 8%✗ -29.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
Investment Checklist
5 / 12 checks passed
✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish
Price history
Quick Metrics
1 good · 4 neutral · 6 weak
Market Cap
₹15,740 Cr
Small Cap
Smaller company — thin liquidity and deep drawdowns are normal here
P/E (Trailing)
Not meaningful
Loss-making
Earnings are negative, so a P/E multiple can't be read here
P/B Ratio
4.62x
Fair
Moderate premium to the company's book value
EPS (TTM)
₹-3.86
Loss-making
Negative earnings per share — the business is losing money
ROE
-54.7%
Weak
Weak capital efficiency
ROCE
-29.7%
Weak
Low return on total capital employed
Debt/Equity
0.82x
Moderate
Moderate leverage
Revenue Growth (YoY)
-45.0%
Shrinking
Sales are contracting
Profit Growth (YoY)
19.5%
Healthy
Profits growing at a healthy clip
Dividend Yield
None
None
No dividend yield reported — usually means no payout, but verify if one was recently initiated
Free Cash Flow
-₹1,493 Cr
Cash burning
Spending more cash than the operations bring in
More Metrics
CMP
₹34.98
P/E (Forward)
-13.2x
Operating Margin
-64.2%
Weak
Thin margins leave little room for error
Net Margin
-92.6%
Weak
Very little revenue reaches the bottom line
Current Ratio
1.14
Adequate
Adequate, but no real cushion
Beta (vs Nifty)
1.38
High swing
Swings more than the market in both directions
52W Range Position
36%
Mid-range
Mid-range
Technical Snapshot
SMA 20 / SMA 50
36.7 / 37.8
Bearish alignment (short < long)
Price vs SMA 200
Below
Long-term downtrend
RSI (14)
28.5
Oversold zone
Financial Trend (4-Year)
Metric
FY23
FY24
FY25
FY26
3Y CAGR
Revenue
₹2,600 Cr
₹4,798 Cr
₹3,998 Cr
₹2,061 Cr
-7.5%
EBITDA
-₹1,122 Cr
-₹1,043 Cr
-₹1,300 Cr
-₹788 Cr
—
EBITDA Margin
-43.1%
-21.7%
-32.5%
-38.2%
—
PAT (Net Profit)
-₹1,472 Cr
-₹1,584 Cr
-₹2,276 Cr
-₹1,833 Cr
—
EPS
₹-3.34
₹-3.59
₹-5.48
₹-4.16
—
ROE
-62.5%
-78.5%
-44.3%
-54.7%
—
ROCE
-42.3%
-37.5%
-25.4%
-29.7%
—
Total Debt
₹1,696 Cr
₹2,711 Cr
₹3,564 Cr
₹2,763 Cr
+17.7%
Free Cash Flow
-₹2,350 Cr
-₹1,847 Cr
-₹3,368 Cr
-₹1,493 Cr
—
🔴 Revenue has shrunk at 7.5% a year over 3 years.
🟢 EBITDA Margin has risen from -43.1% to -38.2% over 3 years (+4.9 pts).
🟢 ROE has risen from -62.5% to -54.7% over 3 years (+7.8 pts).
🟢 ROCE has risen from -42.3% to -29.7% over 3 years (+12.6 pts).
🔴 Total Debt has grown at 17.7% a year over 3 years.
Revenue growth is negative (-45.0%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.
DalalBaazaar Thesis
🔴Business QualityWeak7.5/20
🔴Financial HealthStretched8.1/20
🔴GrowthWeak5/20
🔴ProfitabilityWeak5/15
🔴ValuationDemanding5.1/15
🟡RiskModerate4.5/10
Weak on the fundamentals
Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 4 high-severity red flags sit above this conclusion and should be read first.
