Ola Electric's Market Share Boost Amidst Rare Earth Shortage

New Delhi, Jul 15 (PTI) Ola Electric could gain market share in the near term with relatively less disruption expected due to rare earth magnets shortage, according to a report by Goldman Sachs.

The company has successfully developed heavy rare earths (HRE) free motors which are scheduled for production deployment in Q3 FY26.

Ola Electric expects relatively low disruption from rare earth shortages and could gain market share in the near term as a result, Goldman Sachs stated.

The company management's FY26 guidance to sell between 3,25,000 to 3,75,000 vehicles and generate revenue of Rs 4,200-4,700 crore in the current fiscal, reflects a conservative yet stable outlook, as the company builds toward breakeven, it stated.


The report also noted that Ola Electric's momentum on in-house technology development - such as its cost-efficient ABS kit - and its vertical integration in cell manufacturing, is expected to drive structural cost advantages and faster go-to-market execution.

The report noted that the company expects to become free cash flow (FCF) positive by Q4 FY26, with its cell business to follow suit by Q4 FY27.

Ola Electric has reported 35.5 per cent increase in revenue from operations for the June quarter to Rs 828 crore, as against Rs 611 crore during the quarter ended March 31, 2025.

The Bengaluru-based firm said it delivered a total of 68,192 vehicles in Q1 FY26, as against 51,375 units delivered in Q4 FY25, marking an increase of 32.7 per cent quarter-on-quarter.

Shares of Ola Electric Mobility on Tuesday ended 6.34 per cent down at Rs 44.14 apiece on BSE.