Market Performance
The Ola Electric share price experienced a steep 9.7% intraday decline on Thursday, falling below the ₹50 mark. The stock opened at ₹48.36, significantly lower than its previous close of ₹53.24, and further dipped to ₹48.07—hovering dangerously close to its 52-week low of ₹45.55.
Main News
This sharp drop came in response to the company's dismal Q4 FY25 earnings report, which revealed deepening losses and a significant year-over-year decline in revenue. The fall reflects broader concerns over the company's performance trajectory amid increasing competition and slowing sales momentum.
Company Details
Ola Electric, known for its electric two-wheelers, has been struggling to maintain consistent growth since its stock market debut in August 2024. The company is facing:
- Declining unit sales
- Regulatory headwinds
- Fierce competition from legacy automakers in the electric vehicle space
The latest quarterly numbers paint a worrying picture for the EV pioneer.
Q4 FY25 Financial Overview
Revenue
- Revenue from operations dropped 62% YoY, falling to ₹611 Crore from a much healthier base in the previous year.
EBITDA
- Consolidated EBITDA loss widened sharply to ₹658 Crore, a steep rise compared to the ₹269 Crore EBITDA loss in Q4 FY24.
EBITDA Margins
- The EBITDA margin experienced a significant decline, dropping 101.4%, indicating substantial inefficiencies in cost management and operations.
Net Profits
- Net loss more than doubled, reaching ₹870 Crore, up from ₹416 Crore in the same quarter last year.
Sales Performance
- Total unit deliveries plunged 55%, with Ola Electric delivering 51,375 units in Q4 FY25, compared to 1,15,386 units in Q4 FY24.
Summary of the Article
The Ola Electric share price nosedived nearly 10% post Q4 FY25 results, driven by worsening losses and declining revenues. With a deepening EBITDA loss and falling delivery numbers, investor sentiment has turned negative. The stock is now hovering near its 52-week low, highlighting growing concerns about the company's short-term performance.
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