Ola Electric shares slide 6% to all-time low after fresh block deal
Shares of
Ola Electric Mobility
dropped 6% on Monday to an all-time low of Rs 43.20 on the BSE, after 0.8% of the company's equity changed hands in block deals. The identities of the buyers and sellers were not immediately known.
Earlier this month, a block deal worth Rs 731 crore saw 14.22 crore shares—representing 3.23% equity—change hands at an average price of Rs 51.40. Hyundai Motor Company was the reported seller in that transaction.
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Weak Q4 performance
The stock's recent decline follows a weak March quarter earnings report. Ola Electric posted a net loss of Rs 870 crore in Q4 FY25, more than doubling from Rs 416 crore in the same quarter last year. Revenue from operations slumped 62% YoY to Rs 611 crore as vehicle deliveries fell to 51,375 units from 1.15 lakh a year ago.
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Auto EBITDA margin plunged to -78.6% from -9.3% in Q4 FY24, while consolidated EBITDA margin dropped to -101.4%, impacted by high provisioning and weak operating leverage. However, gross margin improved slightly to 19.2%, supported by better monetisation and a higher share of Gen-3 platform vehicles, which offer 20% more power and range at 11% lower cost than Gen-2 models.
For FY25, the company delivered 3.59 lakh vehicles, up from 3.29 lakh in FY24. Full-year adjusted revenue stood at Rs 4,665 crore, with a consolidated EBITDA margin of -34.6%.
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Stock performance and price target
Ola Electric's shares have fallen over 43% from their IPO price of Rs 76. The company debuted on August 9, 2024, listing at Rs 91.20 per share. The stock is now down 49% year-to-date and has fallen 72% from its 52-week high of Rs 157.50.
According to Trendlyne, the average analyst target for Ola Electric is Rs 59, implying a potential upside of nearly 35%. Among the seven analysts tracking the stock, the consensus rating is 'Hold'.
Ola Electric, known for its electric scooters, has faced criticism over customer service and repair issues, which have also attracted regulatory scrutiny. Despite ongoing expansion plans in the EV ecosystem, these challenges continue to weigh on investor sentiment.
The company's current market capitalisation stands at Rs 19,407 crore.
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