Why Are Ola Electric Shares Plummeting to an All-Time Low?
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Synopsis
Ola Electric Mobility's shares plunged to an all-time low of Rs 43.20 amid disappointing financial results. The company is facing challenges with heavy losses and declining sales. Despite this, management remains optimistic about achieving profitability by FY26. Will they bounce back?
Key Takeaways
- Ola Electric shares hit an all-time low.
- Company reports significant financial losses.
- Management optimistic about future profitability.
- Revenue and vehicle registrations have dropped sharply.
- Stock has declined substantially since IPO.
Mumbai, June 23 (NationPress) The shares of Ola Electric Mobility experienced a significant drop on Monday, hitting an unprecedented low of Rs 43.20 on the Bombay Stock Exchange (BSE).
During the intra-day trading session, the stock plummeted by nearly 6 percent following a block deal that encompassed 0.8 percent of the company's equity.
This transaction involved shares worth approximately Rs 107 crore, although the identities of the buyers and sellers were not disclosed.
As of around 1 P.M., Ola Electric’s shares were priced at Rs 43.92, reflecting a decrease of Rs 2.16 or 4.69 percent for the day.
The decline in share prices is also attributed to the company's disappointing financial results for the fourth quarter (Q4) of FY25.
Ola Electric reported a net loss of Rs 870 crore, more than double the Rs 416 crore loss recorded in the same quarter of the previous fiscal year (Q4 FY24).
These losses were propelled by substantial discounts and decreased sales, with revenue from operations plunging 62 percent Year-on-Year (YoY) to Rs 611 crore.
Vehicle registrations fell by over 52 percent to 56,760 units, while deliveries halved at 51,375 units.
Despite this downturn, Ola Electric's management remains hopeful, stating their aim to achieve profitability by FY26.
Since its IPO in August 2024, Ola Electric’s stock has undergone a steep decline, initially listed at Rs 91.20 per share against an issue price of Rs 76.
The stock has now plummeted over 43 percent from its IPO price and has collapsed 72 percent from its 52-week peak of Rs 157.50.
In just the past week, shares have dropped by 6.2 percent, equating to Rs 2.90, as per BSE analytics data.
Over the last month, the decline has amounted to Rs 9.03 or 17.07 percent. In the last three months, the stock has decreased by Rs 12.12 or 21.64 percent.
On a year-to-date (YTD) basis, it has lost Rs 42.35 or 49.11 percent. Over the past six months, the stock has fallen by Rs 48.75 or 52.63 percent.
Point of View
It is crucial to maintain an unbiased perspective. Ola Electric's current financial struggles reflect broader challenges in the electric vehicle market. While the stock's decline raises concerns, it's important to consider the company's commitment to future profitability and innovation. Stakeholders and investors must remain vigilant as the situation evolves.
NationPress
23/06/2025
Frequently Asked Questions
What caused the decline in Ola Electric shares?
The decline is attributed to a significant net loss of Rs 870 crore in Q4 FY25, heavy discounts, and falling sales.
How much has Ola Electric lost since its IPO?
Since its IPO in August 2024, Ola Electric's stock has dropped over 43 percent from its IPO price.
Is Ola Electric planning to achieve profitability?
Yes, Ola Electric's management aims to become profitable by FY26.
What was Ola Electric's revenue decline?
Revenue from operations fell 62 percent Year-on-Year to Rs 611 crore.
How have vehicle registrations changed?
Vehicle registrations decreased over 52 percent to 56,760 units.
