Ola Electric Shares Slide 30% Since the IPO Issue as Q4 Losses Widen

Ola Electric Mobility has faced a tough road in the March 2025 quarter, with its shares slipping nearly 30% ahead of its Q4 results. The EV maker released its financials on Thursday, May 29, 2025 reporting a significant drop in revenue and widening losses. While the company remains a key player in India’s electric two-wheeler space, challenges around demand and competition are weighing it down.

Steep Decline in Revenue and Rising Losses

Ola Electric’s revenue fell sharply by 62% year-on-year to ₹611 crore in the March quarter. This is also a drop from ₹1,045 crore reported in the December quarter. Net loss widened to ₹870 crore, compared to ₹416 crore in the same quarter last year and ₹564 crore in the previous quarter.

The company's EBITDA loss rose to ₹695 crore from ₹312 crore last year, showing increased spending and operational strain. This rising loss, coupled with declining revenue, is sparking concerns about its financial stability.

Ola Electric Share Price and Valuation

Despite the weak financials, Ola Electric share price settled slightly higher by 0.62% on Thursday at ₹53.24. However, the stock is now down nearly 30% from its IPO price of ₹76, reflecting investor caution. Its current market capitalisation stands at ₹23,483 crore.

Challenges Ahead

With volumes not growing as projected, the company may continue to burn cash for a longer period. It might need to raise additional funds over the next 12 to 24 months to maintain operations and fuel future expansion.

The electric two-wheeler segment is also facing increasing competition, which could further impact Ola's market share. Net loss for FY25 is expected to widen to ₹1,900–2,000 crore, up from ₹1,600 crore in FY24.

Conclusion

While short-term profitability remains uncertain, Ola Electric may see margin improvements from FY26 onwards. The company’s performance in the coming quarters will be crucial as it works to overcome operational challenges and navigate a highly competitive market.

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