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Key Points

Ola Electric is experiencing a dramatic stock market downturn, with shares crashing 72% from their peak. The company's financial performance in Q4 FY25 reveals significant challenges, including a substantial net loss and sharp decline in vehicle deliveries. Block deals involving Hyundai and weak operational metrics have contributed to investor concerns. Despite delivering slightly more vehicles in FY25 compared to the previous year, the company's financial health remains under scrutiny.

Key Points: Ola Electric Stock Crashes 72% Amid Hyundai Block Deal Shock

  • Ola Electric stock falls to Rs 43.16 after massive 72% drop
  • Hyundai sells major equity stake in block deal
  • Q4 reveals significant operational challenges
2 min read

Ola Electric shares crash 72 pc from peak amid weak earnings, block deals

Ola Electric's stock plummets to all-time low after weak Q4 earnings, significant block deals, and dramatic 72% decline from peak

"The company's performance reflects deep challenges in the electric vehicle market - Financial Analyst"

Mumbai, June 25

Ola Electric's stock has taken a massive hit, plunging 72 per cent from its record high of Rs 157.40, which it had touched on August 20, 2024 -- just six days after making a strong debut on the National Stock Exchange (NSE) at Rs 75 per share.

Since then, the stock has been falling steadily, with no signs of recovery.

On Tuesday, the stock dropped to an all-time low of Rs 43.16 on the NSE.

This fall came after block deals involving around 0.8 per cent of the company's equity were executed during the day.

Earlier in June, another major block deal took place, where 14.22 crore shares -- about 3.23 per cent of the company's total equity -- were exchanged for Rs 731 crore.

The average price for this deal was Rs 51.40 per share.

Reports suggest that Hyundai Motor Company was the seller in this transaction.

The fall in Ola Electric's share price also follows a poor financial performance in the fourth quarter of FY25.

The company reported a net loss of Rs 870 crore for the March quarter, which is more than double the Rs 416 crore loss it posted during the same period previous fiscal.

Revenue from operations dropped sharply by 62 per cent year-on-year (YoY) to Rs 611 crore.

This decline was due to a fall in vehicle deliveries, which stood at 51,375 units in Q4 FY25 compared to 1.15 lakh units in Q4 FY24.

The company's auto business also showed signs of deep stress.

Its Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) margin for the auto segment worsened to -78.6 per cent, compared to -9.3 per cent a year ago.

On a consolidated basis, the EBITDA margin further deteriorated to -101.4 per cent, hit by higher provisions and weak operating leverage.

However, there was a small positive in the form of improved gross margin, which rose to 19.2 per cent.

For the full financial year FY25, Ola Electric delivered 3.59 lakh vehicles, slightly higher than 3.29 lakh units in FY24.

The company's adjusted revenue for the year stood at Rs 4,665 crore, while its consolidated EBITDA margin was -34.6 per cent.

- IANS

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Reader Comments

R
Rahul K.
This is what happens when hype overtakes fundamentals. Ola Electric expanded too fast without proper planning. Indian EV market needs stable players, not flashy marketing. Hope they can turn things around 🤞
P
Priya M.
As an early investor, I feel cheated. The company kept painting rosy pictures while insiders were exiting. SEBI should investigate these block deals. Retail investors always bear the brunt!
A
Arjun S.
The EV revolution in India is real but companies need sustainable models. Ola focused more on valuation than quality. My friend's Ola scooter has been in service center for 3 weeks! How can you build trust like this?
S
Sneha R.
Hyundai exiting is a big red flag 🚩 Foreign investors have better due diligence than our domestic institutions. Maybe now Ola will focus on core business instead of fancy ads and celebrity endorsements.
V
Vikram J.
This is why I never invest in loss-making startups. Traditional auto companies transitioning to EV might be safer bets. At least they know how to manufacture at scale with proper quality control.
N
Neha T.
The government's push for EVs won't succeed if companies like Ola keep disappointing. We need reliable products, not just subsidies. Hope other Indian EV makers learn from this crash course in business fundamentals.

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