What Caused Ola Electric Shares to Plummet 72%?
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Synopsis
Ola Electric's shares have plunged dramatically by 72% from their peak. This alarming decline follows disappointing earnings reports and block deals impacting investor confidence. Explore the factors behind this significant downturn and what it means for the future of the company.
Key Takeaways
- Ola Electric shares fell 72% from peak prices.
- Block deals involving significant equity impacted share value.
- Recent earnings show a net loss of Rs 870 crore.
- Vehicle deliveries have significantly decreased.
- EBITDA margins indicate distress in the automotive segment.
Mumbai, June 25 (NationPress) The shares of Ola Electric have experienced a dramatic decline, plummeting by 72% from its peak price of Rs 157.40, reached on August 20, 2024—merely six days after its robust debut on the National Stock Exchange (NSE) at Rs 75 per share.
Since that high point, the stock has been on a consistent downward trajectory, showing little indication of bouncing back.
On Tuesday, it hit an unprecedented low of Rs 43.16 on the NSE.
This decline was triggered by block deals involving approximately 0.8% of the company’s equity executed during the trading day.
Earlier in June, another significant block deal occurred, with 14.22 crore shares—about 3.23% of the company's total equity—exchanged for Rs 731 crore.
The average price for that deal was Rs 51.40 per share.
Reports indicate that Hyundai Motor Company was the seller in this transaction.
The drop in Ola Electric's share price also aligns with a disappointing financial report for the fourth quarter of FY25.
The company recorded a net loss of Rs 870 crore for the March quarter, significantly higher than the Rs 416 crore loss in the same period last year.
Revenue from operations fell drastically by 62% year-on-year (YoY) to Rs 611 crore.
This drop was attributed to a decrease in vehicle deliveries, which totaled 51,375 units in Q4 FY25 compared to 1.15 lakh units in Q4 FY24.
The company's automotive division also showed signs of severe distress.
Its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin for the auto segment worsened to -78.6%, compared to -9.3% the previous year.
On a consolidated basis, the EBITDA margin further declined to -101.4%, impacted by increased provisions and poor operating leverage.
However, a slight positive emerged with an improved gross margin, which increased to 19.2%.
Throughout the full financial year FY25, Ola Electric delivered 3.59 lakh vehicles, which is marginally higher than 3.29 lakh units in FY24.
The company's adjusted revenue for the year reached Rs 4,665 crore, while its consolidated EBITDA margin stood at -34.6%.
Point of View
It’s crucial to recognize the volatility in the electric vehicle market, particularly with Ola Electric. This significant drop in share price reflects broader industry challenges and the need for transparency in corporate earnings. Investors should remain vigilant and informed as the situation develops.
NationPress
25/06/2025
Frequently Asked Questions
What caused Ola Electric's share price to fall?
The share price fell due to disappointing earnings reports, significant block deals, and a sharp decline in vehicle deliveries.
How much has Ola Electric's stock dropped?
Ola Electric's stock has dropped by 72% from its peak of Rs 157.40.
What were the financial results for Ola Electric in FY25?
Ola Electric reported a net loss of Rs 870 crore and a revenue drop of 62% year-on-year.
Who was involved in the recent block deals?
Hyundai Motor Company was reported to be the seller in the recent block deals involving Ola Electric shares.
What is the current market outlook for Ola Electric?
The market outlook remains uncertain due to the company's financial struggles and declining share price.
