Mumbai: Ola Electric, led by Bhavish Aggarwal, is facing significant challenges as its stock continues to slide, resulting in a considerable loss for investors.
The company has seen its market capitalisation plummet by nearly Rs 40,000 crore from its peak valuation, which stood at Rs 66,000 crore shortly after its initial post-listing surge.
As of now, Ola Electric’s market cap has dipped to Rs 26,187.81 crore.
The company, which debuted on the Bombay Stock Exchange (BSE) at Rs 76 per share in August last year, has been under consistent selling pressure. On Tuesday, its stock hit an all-time low, falling over 3% to Rs 58.84 per share.
Several factors have contributed to this downturn, including mounting losses, declining revenue, ongoing service-related issues, and the broader market correction affecting Indian stocks.
In its latest earnings report, Ola Electric revealed a sharp 50% increase in its consolidated net loss for the third quarter of FY25.
The company’s loss widened to Rs 564 crore, up from Rs 376 crore during the same period last year.
Additionally, operating revenue fell by 19%, dropping from Rs 1,296 crore to Rs 1,045 crore year-on-year.
The company attributed the losses to “highly competitive intensity and service challenges” during the quarter.
Despite these setbacks, Ola Electric maintains that it has addressed its service issues and remains focused on expanding its presence in the electric two-wheeler market.
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However, the company’s market share in this sector has taken a hit, falling to below 20% in December 2024, down from 49% just six months earlier in June 2024.
Ola Electric had a brief boost in October, driven by strong festival sales, but it acknowledged that the overall quarter remained weak due to intense competition and service-related challenges.
Adding to the company’s woes, the Central Consumer Protection Authority (CCPA) issued a show-cause notice regarding allegations of misleading advertising and unfair trade practices, requesting further clarifications on the matter.
Despite these difficulties, Ola Electric has made efforts to expand its retail presence, opening more stores and claiming to have resolved many of the service-related issues that affected its performance in recent months.
