Ola Electric shares hit record low amid sell-off, down over 49% this year
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New Delhi: Ola Electric’s turbulent journey in the stock market worsened on Monday, with its shares plummeting to an all-time low of Rs 43.20 on the Bombay Stock Exchange. This represents yet another setback for the EV manufacturer, whose shares have now dropped almost 50% in value since the beginning of the year.
The steep decline followed a block transaction involving approximately 0.8% of the firm's equity — valued at about Rs 107 crore. Despite the transaction prompting intense trading, the identities of both the buyer and seller are still undisclosed. By early afternoon, the shares were trading a bit higher at Rs 43.92, remaining down 4.69% for the day.
A significant portion of the decline is attributed to the firm's unsatisfactory results in the fourth quarter of FY25. Ola Electric announced a significant net loss of Rs 870 crore, which is more than twice its loss of Rs 416 crore during the same time last year.
Compounding its troubles, operational revenue fell 62% year-over-year to Rs 611 crore. Sales have dropped significantly,with vehicle registrations decreasing by more than 52% to 56,760 units, while deliveries nearly halved to 51,375 units.
Although the bleak figures, Ola Electric claims it remains committed to making a turnaround. Company executives affirm they are striving for profitability by the conclusion of FY26.
However, the market appears to be skeptical. Ola Electric’s stock has experienced a significant decrease since its IPO in August 2024. Although it launched at Rs 91.20 — exceeding the issue price of Rs 76 — the stock has dropped 43% from its debut price and an alarming 72% from its 52-week peak of Rs 157.50.
In the last week alone, the stock price has dropped by more than 6%. The monthly drop is 17%, whereas the three-month decrease exceeds 21%. Since January, the stock has lost close to 50% of its value.
With the increasing competition and rising cost pressures in the EV sector, Ola Electric now confronts the task of rebuilding investor confidence — and demonstrating its potential in India’s electric future.
(Inputs from PTI)