Ola Electric's shares down 7% today: Here we decode why
What's the story
Ola Electric's shares plummeted by 7% today, following a major block deal worth ₹731 crore.
The transaction involved the transfer of around 14.22 crore shares or 3.23% of the company's total equity at an average price of ₹51.4 per stock, lower than Monday's closing price of ₹53.68 apiece.
Hyundai is tipped to be the seller in this transaction, having held a 2.47% stake in Ola Electric as per March quarter data.
Figures
A look at the financial performance
Ola Electric recently reported a net loss of ₹870 crore for the March quarter, compared to a loss of ₹416 crore last year.
The company's revenue also fell by 62% year-on-year to ₹611 crore in Q4 FY25 from ₹1,598 crore in Q4 FY24.
Despite these challenges, the firm remains optimistic about future profitability and margin improvement.
Struggles
Stock performance and challenges
Ola Electric's stock has been on a downward trend, falling 6% in the last three trading sessions.
The company's shares opened at ₹53 today but soon fell to a low of ₹49.76 apiece.
This decline brings the stock closer to its 52-week low of ₹45.55 hit on April 7, 2025.
The firm has also been under government scrutiny for allegedly counting reservations of yet-to-be-launched electric motorcycles and scooters as monthly sales, further affecting its market performance.
Market position
Market share and future prospects
Ola Electric has been losing market share to competitors like Bajaj Auto and TVS Motor Company, amid regulatory challenges and customer dissatisfaction.
The company's market share fell to 18% last month, down from a high of 49.2% in May 2024.
Despite these hurdles, the firm is committed to scaling revenue with a strong product roadmap, vertical integration, R&D focus, distribution, and service infrastructure.