Last month, a block deal worth Rs 731 crore saw 14.22 crore shares—representing a 3.23% stake—change hands at an average price of Rs 51.40, with Hyundai Motor Company reported as the seller.
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Weak Q4 performance
The continued slide in Ola Electric’s stock follows a disappointing performance in the March quarter (Q4 FY25). The company reported a net loss of Rs 870 crore, more than double the Rs 416 crore loss posted in the same period last year. Revenue from operations dropped 62% year-on-year to Rs 611 crore as vehicle deliveries declined to 51,375 units from 1.15 lakh a year ago.
Auto EBITDA margin fell sharply to -78.6% from -9.3% in Q4 FY24, while the consolidated EBITDA margin worsened to -101.4%, weighed down by high provisioning and weak operating leverage. However, gross margins improved modestly to 19.2%, aided by higher monetisation and a growing share of Gen-3 platform vehicles, which offer 20% more power and range at 11% lower cost compared to Gen-2 models.
For the full year, Ola Electric delivered 3.59 lakh vehicles, up from 3.29 lakh in FY24. Adjusted revenue for FY25 stood at Rs 4,665 crore, with a consolidated EBITDA margin of -34.6%.
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Stock performance and price target
Since listing in August 2024 at Rs 91.20, Ola Electric shares have fallen over 47.5% from their IPO issue price of Rs 76. The stock is down 53.6% year-to-date and has plummeted 75% from its 52-week high of Rs 157.50.
According to Trendlyne, the average analyst target for the stock is Rs 54, indicating a potential upside of nearly 36% from current levels. Of the seven analysts tracking the company, the consensus rating is ‘Hold’.
Despite aggressive expansion plans in the EV ecosystem, Ola Electric continues to face criticism over customer service and vehicle repair issues. These concerns, along with regulatory scrutiny and mounting losses, have weighed heavily on investor sentiment.
As of now, the company’s market capitalisation stands at Rs 17,660 crore.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
