OLAELEC

** Shares of Ola Electric Mobility OLAE.NS jump more than 7% to 27.78 rupees

** Co cuts price of flagship Roadster X+ 9.1 kWh electric motorcycle by 60,000 rupees to 129,999 rupees ($1,400.10)

** Says price cut driven by improved cost efficiencies from rapid economies of scale at its Gigafactory, deeper vertical integration

** Trading volume at 345.97 mln shares so far vs 30-day average of 72.49 mln

** Stock rated "sell" on average by 8 analysts, median PT at 24.50 rupees - data compiled by LSEG

** YTD, stock down 28.5%

($1 = 92.8500 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru)

((Surbhi.Misra@thomsonreuters.com | X: https://twitter.com/SurbhiMisra_ |;))

April 1 (Reuters) - Ola Electric Mobility Ltd OLAE.NS:

• MARCH REGISTRATIONS JUMP OVER 150%

Source text: ID:nBSEbkCqCG

Further company coverage: OLAE.NS

((Reuters.Briefs@thomsonreuters.com;))

March 18 (Reuters) - Ola Electric Mobility Ltd OLAE.NS:

• OLA ELECTRIC - APPROVES PROPOSED VARIATION IN IPO PROCEEDS UTILIZATION

• OLA ELECTRIC - APPROVED MODIFICATION OF TIME LIMIT FOR UTILISATION OF IPO PROCEEDS

Source text: ID:nBSE6SsbKC

Further company coverage: OLAE.NS

((Reuters.Briefs@thomsonreuters.com;))

By Manoj Kumar

NEW DELHI, March 17 (Reuters) - An Indian parliamentary panel has recommended mandatory registration of gig workers on a national labour database, while calling for clearer legal obligations for digital platforms to contribute to their social security.

The Standing Committee on Labour said in a report on Tuesday that gig workers on digital platforms had become an "integral part of the modern supply chain," particularly in cities delivering food, transport and other on-demand services, but many remained outside formal labour registration and social security systems.

To bridge the gap, the committee has recommended that all platform aggregators, such as Swiggy SWIG.NS, Ola OLAE.NS and Zomato, must register gig workers on the government's e-Shram portal, a national database for unorganised workers.

Engagement of such workers should be linked to this registration, the panel said.

The recommendations come as India's gig economy expands rapidly, with millions working on app-based platforms in sectors such as ride-hailing, logistics and food delivery.

The Indian government announced in November last year the implementation of four labour codes, overhauling decades-old rules governing factories and workers while promising social security benefits for gig and platform workers.

These benefits have not been implemented so far.

There are no official estimates for the size of India's gig economy, although government think tank NITI Aayog expects the sector to employ 23.5 million people, or about 7% of the non-farm workforce, by 2030.

The committee also proposed that registration remain valid for at least one year, with gig workers continuing to receive basic social security benefits, including insurance and accident cover, even if they stop working with a particular aggregator.

It also urged the government to include clearer provisions for gig and platform workers in labour codes, defining aggregator responsibilities and ensuring contributions to social security schemes.

The report further called for stronger social security coverage for workers in non-traditional employment arrangements as India's digital economy evolves.

(Reporting by Manoj Kumar; Editing by Anil D'Silva)

((manoj.kumar@thomsonreuters.com; +919810286200; Twitter:@manojgulnar;))

March 3 (Reuters) - Ola Electric Mobility Ltd OLAE.NS:

• OLA ELECTRIC - ROADSTER RANGE NOW STARTS AT 79,999 RUPEES

Source text: ID:nBSE6HHgHw

Further company coverage: OLAE.NS

((reuters.briefs@thomsonreuters.com;))

** Goldman Sachs downgrades India's Electric two-wheeler manufacturer Ola Electric OLAE.NS to "neutral" rating

** Brokerage cuts PT for OLAE to 26 rupees from 52 rupees earlier

** Shares of OLAE drop nearly 1% to 25 rupees

** Brokerage says insufficient vehicle servicing capacity, high turnover in senior management, volatile sales network strategy, and muted reception for its roadstar motorcycle have led to a loss in 2W market share

** Expects co's 2W market share to remain range bound in the mid-single digit run rates over FY25-FY27

** OLAE rated "Sell" on avg by 8 analysts covering it; median PT at 26.50 rupees - data compiled by LSEG

** YTD, OLAE lost ~30%

(Reporting by Komal Salecha in Bengaluru)

((Komal@thomsonreuters.com))

** Ola Electric OLAE.NS falls as much as 2.5% to record low of 26.83 rupees; stock down 12.5% so far this week

** Electric two-wheeler manufacturer plans to reduce physical store count further to about 550 by March-end, as per media report

** Earlier this week, Citi downgraded stock to "sell" from "buy"; cuts PT to 27 rupees from 55 rupees, citing persistent headwinds to volume growth

** Stock rated "hold" on average vs "strong buy" for larger rival Ather Energy ATHR.NS, per data compiled by LSEG

** Stock down 25% YTD

(Reporting by Brijesh Patel in Bengaluru)

((Brijesh.Patel1@thomsonreuters.com; Ph no. +91 9590227221;))

** Ola Electric OLAE.NS falls as much as 5.1% to record low of 27.36 rupees

** Electric two-wheeler manufacturer extends fall after brokerages flag weak Q3 operating profit, question growth prospects

** OLAE currently down 2.2%; sheds 8.7% since Monday

** Citi downgrades to "sell" from "buy"; cuts PT to 27 rupees from 55 rupees, citing persistent headwinds to volume growth

** Says co's prospects of posting positive EBITDA hampered by poor perception of its scooters, service quality, which could take time to improve

** Adds key headwinds include improved affordability of combustion engine scooters, increased competition among EV players

** Notes negative free cash flow key area of concern

** Stock rated "hold" on average vs "strong buy" for larger rival Ather Energy ATHR.NS, per data compiled by LSEG

** Stock down 22% YTD

(Reporting by Nandan Mandayam in Bengaluru)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))

** Shares of Ola Electric Mobility OLAE.NS drop as much as 6.7% to their lifetime low of 28.81 rupees, last down 5.5%

** Electric two-wheeler maker posted consol net loss of 4.87 billion rupees ($53.7 million) in Q3 from a loss of 5.64 billion rupees year ago; revenue plummets 55% Y/Y to 4.7 billion rupees

** Brokerage Ambit says EBITDA losses expanded with margin dropping 14% Y/Y in Q3 due to higher employee exit costs

** Ambit cuts PT to 25 rupees from 30 rupees, maintains 'sell' rating

** Emkay downgrades OLAE to "Sell" from "Buy", cuts PT by 60% to 20 rupees from 50 rupees

** Kotak cuts PT to 20 rupees from 25 rupees, maintains "Sell"

** Adds, OLAE continuously fails to acknowledge major concerns related to products, which are contributing to sustained below-expectation volume offtake and a rapidly declining market share

** OLAE fell 58% in 2025

($1 = 90.6540 Indian rupees)

(Reporting by Vijay Malkar)

((VijayDattaram.Malkar@thomsonreuters.com;))

Rewrites throughout

Feb 13 (Reuters) - Lossmaking Indian two-wheeler maker Ola Electric OLAE.NS said on Friday that it seeks to lower its operating costs by as much as 50% in the coming quarters, after posting a narrower third-quarter loss as it sets its sights on turning profitable.

The SoftBank-backed firm posted a narrower quarterly loss of 4.87 billion rupees ($53.75 million) as its new lineup of models cost less to produce, partly offsetting a sales slump.

Ola, which once led India's electric two-wheeler market with a 50% market share at its peak, has stumbled over the last year, affected by a deluge of complaints about its service centres that drew regulatory scrutiny.

"As EV penetration growth has slowed and our service execution has required strengthening, we chose to realign our retail footprint, cost structure, and operating model to a sustainable steady state," Ola said in a letter to shareholders.

"The result is a structurally lower volume breakeven business with significantly improved operating leverage."

The electric two-wheeler manufacturer now projects operating expenses of 2.5 billion rupees to 3 billion rupees in the next few quarters, from 4.84 billion rupees in the third-quarter.

If it achieves this target, monthly sales required to post an operating profit would drop to 15,000, the company said. Ola Electric had average monthly sales of 11,000 in the December quarter.

Ola has brought down its operating costs in recent quarters through increased automation, job cuts and ramping up in-house production of EV cells along with a new cost-efficient lineup of models.

The company said its efforts at stabilising issues that plagued its service centres, as well as the higher range offered by models powered by in-house EV cells would bolster growth.

Sales slid 61% in the three months through December, according to company data, resulting in a 55% decline in revenue.

The company retained its full-year revenue target of 30 billion to 32 billion rupees, as well as a volume target of 100,000 units from October-March.

($1 = 90.61 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Editing by Ronojoy Mazumdar, Janane Venkatraman and Mrigank Dhaniwala)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))

Adds details, background throughout

Jan 30 (Reuters) - India's Ola Electric OLAE.NS said on Friday it would lay off 5% of its workforce in a restructuring effort aimed at improving profitability through greater automation.

The company is "doubling down" on speed and discipline through increased automation across its front-end operations, it said in a statement, adding that it is building a "leaner organisation" positioned for long-term, profitable growth.

The layoffs translate to roughly 620 jobs, based on the company's headcount of 12,396 employees as of March 31, 2025, according to its annual report and Reuters calculations.

The SoftBank-backed company had slashed more than 1,000 jobs at its front-end operations in March last year, citing increased automation, which improved margins.

Ola Electric, once commanding half of India's e-scooter market, has lost ground to legacy players such as Bajaj Auto BAJA.NS and TVS Motor TVSM.NS, which widened distribution and rolled out competing models, as well as to rival Ather Energy ATHR.NS.

After its stellar stock market debut in August 2024, the company was hit by a series of setbacks, from servicing delays to registration issues, knocking it down the pecking order of India's electric two-wheeler market.

While the company's shares doubled within weeks of its listing, rising customer complaints over service issues and stalling sales have since pushed its stock down by more than 57%.

MARCH TO PROFITABILITY

Sales for Ola Electric, which is yet to turn a profit, slumped 51% in 2025, government data showed, with registration issues impacting volumes early on in the year.

During its second-quarter earnings, Ola lowered full-year revenue target and maintained its margin forecast for the core automotive business as it shifts focus to profitability over volumes.

The Bengaluru-based firm expects fiscal 2026 revenue to be between 30 billion rupees and 32 billion rupees ($326.3 million-$348.1 million), compared with 42 billion–47 billion rupees forecast earlier. Its revenue was 46.65 billion rupees in fiscal 2025.

Ola is betting on in-house cell manufacturing to turn a profit, and recently announced that it would separately sell those cells to startups and businesses.

($1 = 91.9310 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru; Writing by Abinaya Vijayaraghavan; Editing by Janane Venkatraman and Shilpi Majumdar)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))

** Shares of Ola Electric Mobility OLAE.NS fall 3.7% to 34.7 rupees, lowest in nearly a month

** Electric vehicle maker's CFO Harish Abichandani resigns due to personal reasons

** Co names Deepak Rastogi as new CFO

** Stock down for the 10th consecutive session; it fell 57.7% in 2025

** Stock rated "hold" on avg; median PT 46 rupees - data compiled by LSEG

(Reporting by Aleef Jahan in Bengaluru)

((aleefjahan.cs@thomsonreuters.com))

Adds more details, context paragraph 2 onwards

Jan 19 (Reuters) - Indian electric two-wheeler maker Ola Electric OLAE.NS on Monday named Deepak Rastogi as its new finance chief, effective January 20.

Rastogi, who most recently was the group finance chief of property developer Puravankara PURA.NS, will succeed Harish Abichandani, Ola said.

Under Abichandani, who had been the CFO of Ola Electric since November 2023, the company went public in a blockbuster debut in 2024.

But since then, it has grappled with stalling sales which led the firm to cut its fiscal 2026 revenue forecast in November last year.

Once commanding 50% of India's e-scooter market, Ola Electric has been overtaken by rivals such as Bajaj Auto BAJA.NS and TVS Motor TVSM.NS, which have expanded distribution and launched similarly priced models.

(Reporting by Hritam Mukherjee in Bengaluru
Editing by Tomasz Janowski)

((Hritam.Mukherjee@thomsonreuters.com; X: @MukherjeeHritam;))

Jan 1 (Reuters) - Ola Electric Mobility Ltd OLAE.NS:

• MARKET SHARE INCREASES TO 9.3% IN DECEMBER

• 9,020 UNITS REGISTERED IN DECEMBER

Source text: ID:nNSE2v761y

Further company coverage: OLAE.NS

((Reuters.Briefs@thomsonreuters.com;))

Dec 30 (Reuters) - Ola Electric Mobility Ltd OLAE.NS:

• GETS GOVERNMENT CERTIFICATION FOR 4680 BHARAT CELL POWERED ROADSTER X+ MOTORCYCLE

Source text: ID:nBSE4H760S

Further company coverage: OLAE.NS

((Reuters.Briefs@thomsonreuters.com;;))

Nov 6 (Reuters) - India's Ola Electric OLAE.NS reported a narrower second-quarter loss on Thursday, helped by a sharp drop in its expenses.

The electric two-wheeler maker's consolidated net loss stood at 4.18 billion rupees ($47.56 million), compared to 4.95 billion rupees a year earlier.

($1 = 87.8950 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)

((Kashish.Tandon@thomsonreuters.com; 8800437922;))

Adds Ola's response on non-payment of salary in paragraph 9

By Chandini Monnappa and Kashish Tandon

BENGALURU, Oct 20 (Reuters) - Ola Electric OLAE.NS founder Bhavish Aggarwal and a senior executive have been named in a police complaint after an employee accused them of harassment in a 28-page note before dying by suicide, according to a copy of the police report seen by Reuters.

The complaint, filed by the employee's brother in Bengaluru, names Aggarwal and the company's head of homologation, Subrath Kumar Das, alleging the employee was under intense pressure.

The deceased K. Aravind's brother, Ashwin Kannan, told Reuters that a day after his brother's cremation on September 29, the company deposited about 1.7 million rupees ($19,341) to Aravind's account.

On enquiring about the payment, three people from Ola Electric's human resources team visited him and said the deposit related to Aravind's pending salary for the financial year 2024-25, he said.

"When they had not paid for months, how did they suddenly send the amount the very next day of hearing about my brother's death and cremation?" Kannan asked.

Ola Electric, which has challenged the First Information Report (FIR) in the state's top court, said the employee never raised any complaint or grievance regarding his employment or any harassment during his tenure.

However, Kannan told Reuters his brother had been employed with Ola Electric since 2022 and had recently complained that the company had not cleared his dues.

He said Aravind feared seeking payment after hearing that employees who raised similar concerns were losing their jobs.

On non-payment of salary, the company said all salary dues to Aravind "were cleared in the normal course of payroll processing". "There were no pending or outstanding salary payments at the time of the incident," it said.

"In order to provide immediate support to the family, the company promptly facilitated the full and final settlement to his bank account," Ola Electric's spokesperson said.

Ola Electric, backed by SoftBank Group 9984.T, Temasek Holdings, Tiger Global Management and India’s State Bank of India has been grappling with slowing sales, regulatory scrutiny and intensifying competition from established two-wheeler makers.

The stock has fallen about 30% since listing in August 2024.

($1 = 87.8950 Indian rupees)

(Reporting by Kashish Tandon, Chandini Monnappa and Haripriya Suresh in Bengaluru; Editing by Eileen Soreng)

((Kashish.Tandon@thomsonreuters.com; 8800437922;))

** Shares of Ola Electric Mobility OLAE.NS climb 4.5% to 55.11 rupees

** Electric scooter maker launched its first battery energy storage systems (BESS) solution

** Expects annual consumption for BESS to scale up to 5 gigawatt-hour in the next couple of years

** Introductory prices start at 29,999 rupees ($341.47) for a 1.5 kilowatt-hour battery; prices go up to 159,999 rupees for 9.1 KWh for the first 10,000 units

** Stock top percentage gainer on the Nifty small-cap index .NIFSMCP100, which is up 0.4%

** OLAE stock is rated "hold" on avg by 7 brokerages, median PT at 45 rupees - data compiled by LSEG

** Stock down 35.6% YTD

($1 = 87.8538 Indian rupees)

(Reporting by Manvi Pant in Bengaluru)

((Manvi.Pant@thomsonreuters.com; +918447554364;))

Oct 6 (Reuters) - Ola Electric Mobility OLAE.NS:

• GETS GOVERNMENT CERTIFICATION FOR IN-HOUSE FERRITE MOTOR

• WITH THIS CERTIFICATION, TO INTEGRATE FERRITE MOTOR ACROSS LINEUP

Source text: ID:nNSE6b2g4N

Further company coverage: OLAE.NS

((Reuters.Briefs@thomsonreuters.com;))

Corrects market share to about 0.5% from about 5% in paragraph 4 after company clarification

By Meenakshi Maidas and Yagnoseni Das

Sept 30 (Reuters) - Simple Energy, an Indian electric two-wheeler manufacturer that plans to go public next year, is aiming for a 19-fold jump in retail presence by 2029 as it accelerates expansion in northern India to compete with industry giants, a top executive said.

Bengaluru-headquartered Simple Energy, founded in 2019, opened its first showroom last year and now operates 53 outlets across the country.

In the next three to four years, Simple will be in a hyper-growth phase, essentially to break into the top three, Founder and CEO Suhas Rajkumar told Reuters.

The company currently holds about a 0.5% share of India's EV two-wheeler market, competing with established players such as TVS Motor TVSM.NS, Bajaj Auto BAJA.NS, Ola Electric OLAE.NS, and Ather Energy ATHR.NS.

Scooters make up roughly one-third of India's two-wheeler market and dominate the EV segment, accounting for the majority of the sales.

Simple Energy said in mid-September that it has developed an in-house motor free of heavy rare-earth elements, a move aimed at insulating itself from supply chain disruptions following China's export curbs, which rattled the global auto industry and left manufacturers scrambling for alternative technologies.

Local peer Ola also ramped up its programme to make their own rare-earths-free motors in April in response to global supply constraints, and plans to roll them out in the December quarter.

Simple Energy will keep the motor tech exclusive for now, but may open it to other players within a year if supply chain pressures persist, Rajkumar said.

The company plans to launch an IPO in the second or third quarter of fiscal 2027, aiming to raise $350 million, largely through a fresh issue. The proceeds will be earmarked for retail expansion, research and development, and marketing.

A small portion of the IPO will be an offer for sale, although specific details remain undisclosed. So far, the company has raised $51 million from marquee investors to fuel its growth.

Simple, which sells the 'Simple One' and 'Simple OneS', has sold 5,027 vehicles, as of September 29, according to government data, after facing early delivery hiccups.

(Reporting by Meenakshi Maidas and Yagnoseni Das in Bengaluru; Editing by Sherry Jacob-Phillips)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

By Akash Sriram

BENGALURU, Sept 23 (Reuters) - Electric two-wheeler startup Ultraviolette Automotive said on Tuesday it is open to licensing its battery technology, as the Qualcomm QCOM.O and TVS Motor‑backed TVSM.NS company seeks to build a new, higher‑margin revenue stream.

EV startups face heavy cash burn from factory build-outs and the high cost of batteries and components.

Licensing could provide capital to expand manufacturing and the product portfolio, giving companies more financial flexibility, industry experts say.

"A little down the line, we should probably look at other revenue streams from offshoots from the technology side," CEO Narayan Subramaniam told Reuters.

"We have gotten interest from EV manufacturers, companies that make space tech equipment to even performance hydroplanes. But for us currently, with the bandwidth that we have, our laser-sharp focus is on building our presence and product portfolio."

Pursuing new business lines can divert focus and resources from scaling core EV sales and manufacturing, a critical phase for startups still establishing market share, industry experts say.

In the United States, Rivian RIVN.O and Lucid LCID.O have also sought to boost revenue by licensing or supplying their EV technology, underscoring how capital‑intensive startups are looking beyond vehicle sales for profitability.

The Bengaluru, India‑based company on Tuesday launched the X47 electric motorcycle, aiming to attract a broader swath of consumers and expand in India and Europe.

Ultraviolette positions its bikes at the premium end against domestic rivals such as Ather Energy ATHR.NS and Ola Electric OLAE.NS , targeting buyers willing to pay more for performance-oriented models and advanced features.

By contrast, Ather CEO Tarun Mehta told Reuters last month the company is not looking to license its technology.

Ultraviolette raised $21 million last month in a round led by Japan’s TDK Ventures, with participation from Zoho Corporation and Lingotto.

(Reporting by Akash Sriram in Bengaluru; Editing by Tasim Zahid)

((Akash.Sriram@thomsonreuters.com; On X as @HoodieOnVeshti; +91-99017-77617;))

Adds details on numbers of shares sold in paragraph 2

Sept 4 (Reuters) - Japan's SoftBank Group 9984.T has lowered its shareholding in Indian electric scooter maker Ola Electric OLAE.NS to 15.68% from 17.83%, after selling a 2.15% stake over two months, an exchange filing showed on Thursday.

SoftBank, Ola Electric’s second-largest shareholder after founder Bhavish Aggarwal, sold a total of 94.9 million shares in a series of transactions between July and September. It did not disclose the sale price.

The Indian company, which went public in August 2024, has seen a sharp pickup in trading volumes in recent sessions. The stock closed more than 10% higher in two of the past four sessions.

(Reporting by Nishit Navin; Editing by Sonia Cheema)

((Nishit.Navin@thomsonreuters.com;))

** Shares of Ola Electric OLAE.NS up 35% this month, its best since listing on Aug 9, 2024

** Electric two-wheeler maker extends gains for fourth straight session, up 2% to 55 rupees on Friday

** Co secured production linked incentive compliance for its Gen 3 scooters on Tuesday; OLAE up 16% since

** On Aug 20, shares rallied some 18% on multiple block deals at premium

** Stock rated "hold" on avg by 7 analysts; median PT at 45 rupees- data compiled by LSEG

** YTD, OLAE down 34%

(Reporting by Komal Salecha)

((Komal@thomsonreuters.com;))

** Shares of Ola Electric OLAE.NS rise 8.2% to 55 rupees, biggest pct gainer on Nifty 500 index .NIFTY500, which is down 0.4%

** Two-wheeler maker up 13% so far since Tuesday when it won incentive compliance for Gen 3 scooters

** Certification makes co eligible for incentives ranging from 13% to 18% of the determined sales value until 2028

** On average, 7 analysts rate it "hold"; median PT is 45 rupees - data compiled by LSEG

** Broader Indian markets down 0.25% on the day as U.S. punitive tariffs take effect .BO

** YTD, OLAE down 35% vs Nifty 500's 1.7% rise

(Reporting by Komal Salecha)

((Komal@thomsonreuters.com;))

** Indian e-scooter maker Ola Electric OLAE.NS jumps 12.2% to 50.3 rupees, its highest level since early-June

** Shares of OLAE changed hands in 89 block deals priced between 45.4 rupees to 50.63 rupees, data compiled by LSEG showed

** Block deals at 1.3%-12.9% premium on Tuesday's last close

** Overall, about 350 million shares traded, 2.9x the 30-day avg

** Stock down ~42% so far in 2025

(Reporting by Manvi Pant in Bengaluru)

((Manvi.Pant@thomsonreuters.com; +918447554364;))

Aug 4 (Reuters) - India's Ather Energy ATHR.NS reported a narrower first-quarter loss on Monday, helped by higher demand for its e-scooters, particularly the best-selling "Rizta".

The company, founded in 2013, said its loss narrowed to 1.78 billion rupees ($20.31 million) for the quarter ended June 30 from 1.83 billion rupees a year ago.

($1 = 87.6320 Indian rupees)

(Reporting by Meenakshi Maidas in Bengaluru)

((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))

Rewrites throughout, adds executive's comment in paragraph 2

By Nandan Mandayam

July 31 (Reuters) - India's Eicher Motors reported that a shortage of rare earth magnets disrupted its first-quarter production of performance motorcycles due to China's export ban on the key component, prompting the company to switch to alternative materials.

"We started working on the alternative material...at least about three or four months back. Now (the import of) that alternative material is not a major issue," Eicher's Managing Director B. Govindarajan told analysts in a post-earnings call.

The shortage of the critical component stalled production of Royal Enfield's Himalayan, Scram and Guerilla motorcycles, Govindarajan added.

Indian two-wheeler manufacturers, particularly e-scooter makers, are scouting substitutes to rare earth magnets, as China controls 90% of the global production.

Earlier in the day, India's top e-scooter maker TVS Motor TVSM.NS said it was looking for rare earth alternatives used for motors. Ola Electric, meanwhile, had said it has developed rare-earth-free motors, which are to be deployed from the December quarter.

China's curbs on rare-earth exports have disrupted the global auto industry, with companies warning of a severe supply crunch.

Eicher, whose Royal Enfield leads premium motorcycle sales in India, reported a profit that topped estimates on Thursday, helped by strong local and overseas demand.

The company clocked a profit of 12.05 billion rupees ($137.6 million) for the quarter ended June 30, compared with 11.01 billion rupees a year earlier, beating analysts' estimate of 11.17 billion rupees, according to data compiled by LSEG.

Its shares closed down 0.2% before the results were announced. They are up 13.4% so far in 2025.

($1 = 87.6040 Indian rupees)

(Reporting by Nandan Mandayam and Anuran Sadhu in Bengaluru; Editing by Mrigank Dhaniwala and Shilpi Majumdar)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))

** Ola Electric Mobility OLAE.NS falls as much as 4.1% to 45.16 rupees

** Co forecast improved gross margins for FY26 after posting narrower sequential Q1 loss on Monday

** Ambit Capital says co expects margin gains from Q2 due to PLI approval, efficiency improvements

** Adds, "We find this ambitious due to delays in fully commercialising captive cell plant, pending PLI approval"

** Investec says while co's margins expected to rise, volume growth could moderate due to slowdown in EV industry, increased competition

** Notes delay in cell manufacturing ramp up may lead to exclusion from PLI

** Goldman Sachs recognises co's efforts to shift towards positive EBITDA, FCF breakeven, but believes market requires greater clarity on volume growth, market share execution

(Reporting by Meenakshi Maidas in Bengaluru)

((meenakshi.maidas@thomsonreuters.com;))

Recasts; adds comments and result details in paragraphs 4-7

July 14 (Reuters) - India's Ola Electric OLAE.NS on Monday forecast improved gross margins for fiscal 2026 after posting a narrower sequential loss for the first quarter, helped by stronger sales of its newer, more cost-efficient scooter models.

Shares of the company, which listed in August last year, jumped over 14% after the results and were on track to snap a five-session losing streak.

The Bengaluru-based firm's June quarter loss of 4.28 billion rupees ($49.80 million) was narrower than the 8.7 billion rupees in the previous quarter.

The SoftBank-backed 9984.T firm said it expects gross margins to rise to 35% to 40% in the current fiscal year, up from 20.5% last year, and projected revenue between 42 billion and 47 billion rupees, compared to 46.65 billion rupees in fiscal 2025.

The company added that it has developed rare earth-free motors, which are set to be deployed starting the December quarter. Ola said it accelerated the program in April following global rare earth supply cuts.

China's curbs on rare-earth exports have disrupted the global auto industry, with companies warning of a severe supply crunch. Rare-earth magnets are used are used in the motors that power electric scooters.

Ola Electric said its automotive unit posted positive earnings before interest, taxes, depreciation and amortization (EBITDA) in the month of June and expects the segment to turn positive in the second quarter.

Quarterly sales volumes came in at 68,192 units, just higher than the 65,000 units it forecast in May.

The auto segment's gross margin rose to 25.6% from 13.8% in the last quarter.

($1 = 85.9400 Indian rupees)

(Reporting by Meenakshi Maidas, Kashish Tandon and Nandan Mandayam in Bengaluru; Editing by Nivedita Bhattacharjee)

((Nandan.Mandayam@thomsonreuters.com; Mobile: +91 9591011727;))