Ola Electric share price resumed its recent plunge after the electric vehicle company published weak financial results, and as concerns about its business continued. The stock retreated to ₹50, its lowest level since May 15, and 68% from its all-time high of ₹157.20.
Why Ola Electric share price is crashing
Ola Electric, a company making electric scooters, has been under pressure after going public, turning a once popular brand into a fallen angel.
The company has seen substantial competition, especially from traditional brands in India that have developed a reputation and wide distribution network. Some of the top competitors are firms like Bajaj Auto, TVS, and Hero Motorcorp.
Ola Electric has also become less popular among customers, with thousands of them reporting it to the National Consumer Helpline for poor products and customer service. This trend has led to some store closures, an investigation by Indian regulators, and major layoffs.
Ola Electric share price plunged on Friday after the company published weak financial results.
The results showed that Ola Electric’s deliveries tumbled in the last quarter. They fell from 115,386 in Q4’24 to 51,375 in Q4’25. This plunge was driven by the performance of its premium and mass products, with the former falling from 65,682 to 15,764, and the latter moving from 49,704 to 35,611.
Read more: Can the bruised Ola Electric share price recover?
This performance led to a big crash in its revenue and profitability. Automotive revenue dropped from ₹16 billion rupees to ₹6.5 billion. The gross margin improved slightly to 19.2%, while the EBITDA was a ₹5.2 billion loss.
The consolidated revenue dropped to ₹6.5 billion, while the EBITDA was a ₹6.58 billion loss.
It is normal for newly formed companies to experience such big losses. Indeed, most firms in the electric vehicle sector like Rivian and Lucid Group have never turned a profit.
The difference with Ola Electric is that the losses are happening as its business slowdown continues. Other startups experience these big losses as they boost their manufacturing and sales.
Ola Electric share price also crashed after the earnings showed the extent of its cash burning and the need to raise cash. The management said that it was exploring a non-dilutive debt raise of about 17 billion rupees to refinance its debt obligations.
Ola Electric share price analysis
Ola stock chart by TradingView
The eight-hour chart shows that the Ola stock price has plunged after its post-IPO boom faded. It has plunged from a record high of ₹157.19 in August to a record low of ₹46.32. It is now trading at ₹50, as it inches closer to a new record low.
The stock remains below the 50-period moving averages, a sign that bears are in control. Therefore, with its business conditions worsening, there is a likelihood that the Ola Electric share price will continue falling, potentially to below ₹40.
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