Ola Electric Hits Fresh All-Time Low At INR 50.81

Update | March 11, 4:30 PM 

Shares of Ola Electric ended the day’s trading 5.37% lower at INR 50.91 on the BSE.

Original | March 11, 12:53 PM

Shares of Ola Electric fell for the third straight session on Tuesday (March 11), dipping as much as 5.5% to reach an all-time low at INR 50.81 on the BSE.

At 11:52 AM, the stock was trading at INR 51.41, down 4.4% from the previous close of INR 53.80. Ola Electric’s market capitalisation stood at INR 22,693.72 Cr. 

The stock has been on a downward trajectory for some time and has given a negative return of 7.3% and 24% in the last 5 days and month, respectively. 

The Bhavish Aggarwal-led startup went public in August last year, listing on the BSE at INR 75.99 as against the issue price of INR 76. However, the stock jumped over the next few months and reached its all-time high at INR 157.53.

At the current price, Ola Electric shares are trading about 30% lower than the IPO price.

Besides the decline in the broader market over the last few months, the EV major has also been impacted by regulatory issues, rising losses, and increasing competition in the two-wheeler EV segment.

While the company has been under the scrutiny of the Central Consumer Protection Authority (CCPA) for complaints about its after-sales services, it was recently fined by the heavy industries ministry for failing to meet its commitments under the PLI scheme for advanced chemistry cells.

On the financial front, its consolidated net loss ballooned over 50% to INR 564 Cr in the December quarter of the fiscal year 2024-25 (Q3 FY25) from INR 376 Cr in the year-ago quarter, hurt by lower revenue due to rising competition in the electric two-wheeler segment. 

Operating revenue declined  19% to INR 1,045 Cr during the quarter under review from INR 1,296 Cr in the year-ago quarter.

In the recent past, Ola Electric has taken a number of measures to cut costs, including lay offs 

Besides, the company was also said to be looking to deploy an in-house team to cut its vehicle registration cost.

Meanwhile, Ola Electric founder and CEO recently pledged an additional 5.88 Cr shares of the company to raise debt for the AI unicorn Krutrim. 

The heating competition in the electric two-wheeler (E2W) segment has also contributed to Ola Electric’s increasing losses and falling shares. 

As per Vahan data, Ola Electric has lost its leading position in India’s E2W market to legacy automotive player Bajaj Auto yet again in February. Ola Electric claimed that the sales number for the month stood at over 25,000 units.