[Update] Ola Electric Hits Fresh All-Time Low At INR 43.15

Update| June 23, 22:58 PM

Shares of EV major Ola Electric slumped 6.29% to an all-time low of INR 43.15 apiece on the BSE today. However, the stock pared some of the losses and closed 5.93% lower at INR 43.32. 

The company’s market capitalisation stood at $2.2 Bn at the end of the day. 

Original | June 23, 11:49 PM

Shares of Ola Electric slid 6% in early trade today to hit a record low at INR 43.20 apiece on the BSE on the back of a bleeding overall market. 

At 11:33 AM, about 19.22 Lakh traded hands today (On June 20) and the market capitalisation of the Bhavish Aggarwal-led company stood at $2.3 Bn, as per Ola Electric’s last close at INR 46.05. 

The losing streak for Ola Electric shares continues. The company’s stock fell 1.9% during last week, as per Inc42’s new-age tech stock coverage. 

The slump in the share price comes at a time when Ola Electric is reeling with loss in market share and a pressured bottomline. 

While two-wheeler EV registrations did see a 16% increase in April, jumping to 23,557 from 19,709 in the previous month, this growth is not indicative of overall two-wheeler EV sales. In fact, the overall market for electric two-wheelers in India experienced a 30% month-over-month decline in April. This dip is reflected in the sales figures of major players like Ola Electric, which saw a decline in registrations.

On the financial front, Ola Electric’s results for the fourth quarter of the financial year 2024-25 (Q4FY25) failed to impress. The company’s consolidated net loss doubled to INR 870 Cr in the quarter under review from INR 416 Cr in Q4FY25. Ola Electric suffered losses on the back of pressured top line which crashed 62% to INR 611 Cr in Q4FY25 from INR 1,598 Cr in the same quarter last year. 

The slump in the shares of Ola Electric also comes on the back of the overall bleeding stock market. The Sensex hit an intraday low at 81,476.76 points falling 0.27% from its last close at 81,704.07 points on Friday (On June 20). 

The sluggish market sentiments is due to the tensions between Iran and the US as the American forces launched an air strike into Iran territories targeting their nuclear sites. Following this, Iran has threatened to block the Strait of Hormuz, a vital shipping lane for global oil. Nearly 20% of the world’s oil consumption passes through the strait.

Ola Electric’s Bold Promises

Ola Electric CEO Bhavish Aggarwal said that the company has addressed the regulatory challenges related to retail store certifications and the Vahan portal registration discrepancies, indicating that these issues are now being resolved.

In its last earning call, Aggarwal has promised some bold numbers. 

The company is aiming to hit a revenue of INR 800 Cr-850 Cr with a gross margin of 28%-30% by delivering about 65,000 EVs in Q1FY26. While it has reduced its two wheeler monthly sales target to 25,000 units in the last quarter earnings call from 50,000 it aimed in February 2025, citing its cost reduction efforts.

However, the vague projections have further confused the investors and marks an unclear way forward for the EV maker. 

On the other hand, Ola Electric is also seeing major institutional investors lowering their stakes in the company. 

Mutual Funds has lowered their stakes in the company to 2.6% in Q4FY25 from 4.1% in the preceding December quarter. Besides, Hyundai Motor Company also exited the company following a complete offloading of its 2.47% stake this month. This came together with Kia Corporation also selling 0.62% stakes in a bulk deal.

On a year-to-date basis, shares of Ola Electric have lost 46% of its value.