Ola Electric Share Price Faces Pressure as Ather Energy IPO Launches

Ola Electric's share price declined nearly 3% on Monday, pressured by the launch of the Ather Energy IPO. The shares dropped by 2.94%, trading at ₹48.40 on the BSE. This comes as Ather Energy, a rival in the electric two-wheeler market, opened its IPO for public subscription on April 28.

Market Performance

Ola Electric's stock has been under considerable pressure, consistently declining since reaching its peak in August 2024. As of now, it is trading well below its listing price.

• Share Price: ₹48.40 (down by 2.94% on April 28, 2025)
• YTD Decline: 43%
• Three-Month Loss: 24%
• Six-Month Drop: 27%

At their peak, Ola Electric shares hit ₹157.53 in August 2024, but they have since fallen sharply, touching a low of ₹45.55 in April 2025. Analysts have raised concerns over the growing competition from Ather Energy and other manufacturers, such as TVS Motor, in the electric vehicle (EV) market.

Main News

The primary factor contributing to the downward pressure on Ola Electric's stock is the IPO launch of Ather Energy. Both companies, focusing on electric two-wheelers, are intensifying their competition, with Ola Electric grappling with mounting losses.

• Ola Electric's Loss: ₹1,406 crore for the first nine months of FY25
• Ather Energy's Loss: ₹578 crore during the same period

Despite year-over-year sales growth, Ola Electric's losses continue to grow. In FY25, it sold 344,005 units, gaining a 30% market share, up from 329,618 units in FY24. However, both companies remain red, further complicating their financial outlook.

Company Details

Ola Electric:

• FY25 Sales: 344,005 units
• Market Share: 30%
• Net Loss (FY24): ₹1,584 crore
• IPO Listing Price (Aug 2024): ₹76

Ather Energy:

• FY25 Sales: 107,983 units (April-December)
• FY24 Sales: 109,577 units
• Net Loss (FY24): ₹1,060 crore

Despite the rivalry, both companies face hurdles in achieving profitability, with Ather Energy's IPO offering new competition in the market. The IPO aims to raise ₹2,981.06 crore, with a price range of ₹304 to ₹321 per share.

Summary

Ola Electric's share price is under increasing pressure as the competition heats up in the electric two-wheeler market, especially with the Ather Energy IPO now open. Despite expanding sales, both companies struggle with significant losses, affecting investor sentiment. Currently, Ola Electric continues to experience a steep decline in its stock value, highlighting EV manufacturers' challenges in balancing growth and profitability.