Ola Electric Share Price: Shares of Ola Electric Mobility dropped by as much as 3.44% on Monday, hitting a day’s low of Rs 67.61 on the BSE, after the company reported a year-on-year widening of its losses to Rs 564 crore for the third quarter ending December 2024.
With today’s decline, the stock has fallen 6% over the last two trading sessions.
Ola Electric, a leading electric vehicle (EV) manufacturer in India, focuses on the vertical integration of technology and manufacturing for EVs and their components, including battery cells.
The stock had reached a record low of Rs 64.68 on January 28, 2025, correcting 57% from its 52-week high of Rs 157.53, which it touched on August 20, 2024. Ola Electric made its stock market debut on August 9, 2024, raising Rs 6,146 crore through its initial public offering (IPO) by issuing shares at Rs 76 each.
In Q3FY25, Ola Electric’s net loss widened to Rs 564 crore, compared to a net loss of Rs 376 crore in the same period last year. It reported a net loss of Rs 495 crore for Q2FY25 (ending September 2024).
The company posted an Automotive segment gross margin of 20.8% in Q3FY25, reflecting a 2.2 percentage point increase year-on-year. Despite a decline in revenues due to heightened competition and festive discounts, Ola Electric maintained its automotive gross margin at 20.8% in Q3FY25, improving by 20 basis points quarter-on-quarter.
Ola Electric expects its path to profitability to be driven by improving gross margins, optimizing operating costs, and leveraging operating efficiencies through product portfolio expansion, category diversification (motorcycles, Gig & Z), and continued technology leadership.
The company also maintained its market leadership with a 25.5% market share in Q3FY25, despite facing aggressive competition. Ola Electric attributed its leadership to its exclusive focus on EVs, a strong product portfolio, and technological innovation.
However, analysts at Elara Capital forecast that Ola Electric’s market share may remain under pressure due to the ramp-up of competitors. The company now leads in only one of the top 10 EV states (by volume), down from six in November. They cited product servicing issues for Ola, as well as the expansion of incumbents’ distribution networks and product offerings, as key factors behind the loss of market leadership.
Global brokerage firm Goldman Sachs has set a target price of Rs 101 for the stock, maintaining its ‘buy’ rating.
“The company’s revenue exceeded expectations, as the impact of post-festive discounts was less severe than anticipated,” Goldman Sachs noted in its report.
