Synopsis
Ola Electric Mobility Limited anticipates a decline in VAHAN registrations for February, as per their exchange filing. Despite this, the company’s sales are reportedly stable. The decrease is linked to ongoing contract negotiations with service providers. Normal registration processes are expected to resume soon.Key Takeaways
- Ola Electric anticipates a drop in VAHAN registrations.
- Sales remain stable despite registration decline.
- Contract negotiations are affecting registration numbers.
- Company shares have seen a significant drop in market value.
- Service-related issues have been resolved, focusing on growth.
New Delhi, Feb 19 (NationPress) Ola Electric Mobility Limited is projected to experience a decrease in VAHAN registrations for February, while the company's sales continue to remain stable, based on the company's exchange filing on Wednesday.
The temporary reduction in registrations is attributed to ongoing contract renegotiations with Rosmerta Digital Services Private and Shimnit India Private, which manage vehicle registrations for Ola Electric.
According to its filing, the company indicated that these discussions have influenced the registration numbers shown on the VAHAN portal.
“However, it emphasized that sales have not been impacted and remain robust throughout February,” the company noted.
The filing further mentioned that the registration process is expected to normalize in the upcoming weeks.
Ola Electric shares were trading at Rs 60.85, reflecting an increase of Rs 0.58 or 0.96 percent on the National Stock Exchange (NSE) during the intra-day trading session.
Nonetheless, investors have faced significant losses from the persistent decline in the company’s stock price, with approximately Rs 40,000 crore lost since the peak valuation of the stock.
The market capitalisation of Ola Electric fell to Rs 26,187.81 crore from Rs 66,000 crore, which had surged following its initial listing.
Factors contributing to the stock’s decline include mounting losses, decreasing revenue, ongoing service-related challenges, and a broader correction in the Indian stock market.
The electric two-wheeler (e2W) company reported a 50 percent increase in its consolidated net loss, which expanded to Rs 564 crore in Q3 FY25 compared to Rs 376 crore in Q3 FY24.
Operating revenue also saw a 19 percent decline, dropping from Rs 1,296 crore to Rs 1,045 crore during the same timeframe.
In an exchange filing last week, the firm attributed the heightened losses to “intense competition and service issues” during the quarter.
Despite this, the electric mobility company stated that these service-related challenges have been addressed, and it remains committed to strengthening its presence in the electric two-wheeler market.
