Mumbai— Ola Electric’s stock has seen a dramatic fall, plummeting 72% from its record high of ₹157.40, reached on August 20, 2024 — just six days after its robust debut on the National Stock Exchange (NSE) at ₹75 per share.
Since then, the stock has been on a consistent downward trajectory, with no signs of a rebound. On Tuesday, it hit an all-time low of ₹43.16 on the NSE, following a block deal involving approximately 0.8% of the company’s equity.
Earlier in June, another major block deal took place in which 14.22 crore shares — roughly 3.23% of the company’s equity — changed hands for ₹731 crore, at an average price of ₹51.40 per share. Reports suggest Hyundai Motor Company was the seller in that transaction.
The stock’s steep decline coincides with Ola Electric’s disappointing fourth-quarter earnings for FY25. The company posted a net loss of ₹870 crore for the March quarter, more than double its ₹416 crore loss during the same period in the previous fiscal year.
Revenue from operations fell sharply by 62% year-on-year to ₹611 crore, driven by a slump in vehicle deliveries — down to 51,375 units in Q4 FY25 from 1.15 lakh units in Q4 FY24.
The company’s auto business showed signs of significant strain. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin in the automotive segment deteriorated to -78.6%, compared to -9.3% a year ago. On a consolidated basis, the EBITDA margin worsened further to -101.4%, impacted by higher provisions and weak operating leverage.
One small bright spot was an improvement in gross margin, which rose to 19.2%.
For the full fiscal year FY25, Ola Electric delivered 3.59 lakh vehicles, a slight increase from 3.29 lakh units in FY24. The company’s adjusted revenue stood at ₹4,665 crore for the year, while the consolidated EBITDA margin came in at -34.6%.
The combination of steep losses, declining revenue, and significant insider selling via block deals has weighed heavily on investor sentiment, sending the stock into a prolonged slump. (Source: IANS)
