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Key Points

Kotak Securities has reduced its target price for Ola Electric by a notable 40%, following the company's troubling Q4 results. Ola Electric, under the leadership of Bhavish Aggarwal, faced a challenging quarter with a sharp increase in losses and significant revenue decline due to rising competition and brand equity concerns. Kotak pointed to ongoing EBITDA losses and highlighted the necessity for Ola to ramp up volume and address execution challenges as it ventures into the motorcycle market. The figures, including a staggering 9.7% intraday drop in share price, underscore the urgency for Ola Electric to revamp its strategy in an increasingly competitive arena.

Key Points: Kotak Slashes Ola Electric Target by 40% Amid Q4 Losses

  • Kotak cuts price target for Ola Electric by 40%
  • Losses doubled, revenues fell significantly in Q4
  • Competitive pressure and brand equity concerns cited
2 min read

Kotak Securities slashes Ola Electric's target price by 40 pc after dismal Q4 results

Kotak Securities cuts Ola Electric's target price as losses rise and competition heats up.

"Ola Electric's financial performance took a sharp beating in Q4. - Kotak Securities"

New Delhi, May 30

Kotak Securities on Friday slashed price target on Ola Electric by 40 per cent to Rs 30 from Rs 50, citing continued losses and rising competition.

Ola Electric Mobility shares nosedived 9.7 per cent to their intraday low of Rs 48.07 on the BSE during the trade after the electric two-wheeler maker reported a sharp rise in losses for the March quarter.

Kotak Securities flagged two main concerns. It expects EBIDTA losses to continue, driven by weakening brand equity and intensified competitive pressure.

Second, Kotak highlighted that Ola Electric’s future depends on scaling up volumes and executing its motorcycle plans. The firm, however, warned that the motorcycle foray faces execution and credibility challenges.

The brokerage added that the company needs to scale up volumes to avoid a looming cash crunch.

Bhavish Aggarwal-led electric vehicle maker's financial performance took a sharp beating in the fourth quarter (Q4) of FY25, as the Bhavish Aggarwal-led electric vehicle maker on Thursday reported a steep drop in revenue and a two-fold increase in net losses on year-on-year (YoY) basis.

The company posted a net loss of Rs 870 crore for the January–March quarter (Q4), up from Rs 416 crore in the same quarter previous fiscal (Q4 FY24), according to its stock exchange filing.

Revenue from operations fell significantly to Rs 611 crore in Q4 FY25, marking a 61.8 per cent decline from Rs 1,598 crore a year ago. This is one of the company’s worst quarterly revenue performances since it began commercial deliveries of its electric two-wheelers in late 2021.

The drop comes amid rising competition in the electric scooter market, regulatory uncertainty around government subsidies, and inventory correction across dealerships. For the full year FY25, Ola Electric’s revenue also fell to Rs 4,645 crore, down from Rs 5,126 crore in FY24.

- IANS

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Reader Comments

R
Rahul K.
Very disappointing to see Ola Electric struggling like this. As an early customer, I believed in their vision but quality issues and poor service centers have hurt their reputation. Hope they turn things around - India needs strong EV players 🇮🇳
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Priya M.
This is what happens when you focus more on PR than product quality. My friend's Ola scooter had battery issues within 3 months! They need to fix basics before expanding to motorcycles. Still rooting for them though 🤞
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Arjun S.
️Kotak's analysis seems spot on. The EV market is getting crowded with better options from TVS, Ather, Bajaj. Ola's aggressive pricing strategy backfired when quality didn't match promises. Hope they learn from this!
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Neha T.
The government should step in with more support for EV manufacturers. China built global champions with state backing. We can't afford to lose our homegrown EV companies to foreign competition. #MakeInIndia
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Sanjay V.
As an investor, I feel cheated. The IPO looked promising but now seeing these numbers... Bhavish Aggarwal needs to take responsibility instead of blaming market conditions. Other EV companies are doing better in same environment.
M
Meena R.
The 61% revenue drop is shocking! Shows how dependent they were on FAME subsidies. My husband works at an Ola dealership - says inventory pileup is massive. Hope they recover but needs complete strategy overhaul.

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