Ola Electric slips 3%, nears record low on wider Q3 loss, lower deliveries

Ola Electric's net loss widened to Rs 564 crore, compared to Rs 376 crore in Q3FY24 and Rs 495 crore in Q2FY25, in Q3FY25

Ola Electric share price: Shares of Ola Electric Mobility slipped 3 per cent to Rs 67.61 on the BSE in Monday’s intra-day trade after the company’s revenue from operations in December 2024 quarter (Q3FY25) declined 19.36 per cent year-on-year (YoY) to Rs 1,045 crore, from Rs 1,296 crore in the same period last year. Deliveries for the quarter came in at 84,029 units, down by 3 per cent annually.

 

Ola Electric is a leading electric vehicle (EV) manufacturer in India, specialising in the vertical integration of technology and manufacturing for EVs and their components, including battery cells.

 

The stock price of Ola Electric had hit a record low of Rs 64.68 on January 28, 2025. It corrected 57 per cent from its 52-week high level of Rs 157.53 touched on August 20, 2024. Ola Electric made its stock market debut on August 9, 2024, where it raised Rs 6,146 crore through the initial public offering (IPO) by issuing shares at Rs 76 per share. 

 

Meanwhile, in Q3FY25, Ola Electric’s net loss widened to Rs 564 crore, as compared to a net loss of Rs 376 crore in the year-ago quarter. It reported a net loss of Rs 495 crore for the quarter ending September 2024 (Q2FY25). 

 

The company posted an Automotive segment gross margin of 20.8 per cent in Q3FY25, which saw an increase of 2.2 pp (percentage point) YoY. The company’s Automotive gross margin remained strong, improving by 20 bps QoQ to 20.8 per cent in Q3FY25, despite a decline in revenues due to intensified competition and festive discounts, Ola Electric said.

 

The company expects its path to profitability to be driven by improvements in gross margin, optimisation in operating costs and operating leverage through product portfolio expansion, category expansion (motorcycles, Gig & Z) and technology leadership.

 

Meanwhile, the company has maintained its market leadership, with a 25.5 per cent market share during Q3FY25 despite aggressive competitive action. The company said it maintains a leadership position driven by its singular EV focus, strong product portfolio and technology leadership.

 

However, analyst at Elara Capital expect Ola Electric's market share to remain under pressure owing to a ramp-up by incumbents. The company now leads in just one of the top-10 EV states (in terms of volume), down from six in November. Product servicing issues for Ola and a ramp-up of incumbents' distribution network and products are some of the reasons for the loss of leadership, in our view, analysts at Elara Capital said in a January month sector report.