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Ola Electric, led by Bhavish Aggarwal, reported its Q3FY25 results on February 7, revealing a 19% drop in revenue and an increased loss. The company’s loss widened further, with shares now trading below the initial public offering (IPO) price.
Ola Electric Share Performance
The electric vehicle company’s stock was trading at Rs 69.09 per share, a decrease of 3.85% from the previous day’s close of Rs 71.86. Approximately 28.39 lakh shares were traded, which is below the two-week average volume of 41.71 lakh shares.
Q3FY25 Financial Results
Ola Electric posted consolidated revenue of Rs 1,069 crore for the quarter, down from Rs 1,336 crore in Q3 FY24. The company’s net loss for the quarter stood at Rs 564 crore, a significant increase from the Rs 376 crore loss in the same period last year. The EBITDA loss also grew to Rs 333 crore, compared to Rs 226 crore year-on-year.
However, the company reported a reduction in sequential losses, with Q2 FY25 showing a loss of Rs 495 crore on a revenue of Rs 1,214 crore.
Leadership and Market Share
Despite the financial challenges, Ola Electric maintained its leadership in the EV sector with a 25.5% market share in Q3 FY25, according to VAHAN data. The company attributed this to its focused approach on electric vehicles, robust product offerings, and technological advancements.
Automotive Segment Performance
The automotive division saw a gross margin of 20.8% in Q3 FY25, an increase of 2.2 percentage points year-on-year. Although the segment experienced a 14% decline in quarterly revenue, it managed to maintain the same margin compared to the previous quarter.
Stock Analysis
Ola Electric’s stock has seen a 7.39% decline over the past week and a 12.51% drop in the last month. Analysts suggest that the stock may face further correction, with support levels at Rs 65 and resistance at Rs 74. According to Riyank Arora, a Technical Analyst at Mehta Equities, the stock has broken below its immediate support at Rs 70, and could potentially fall to levels around Rs 64-65, with resistance at Rs 73.
Ola Electric IPO Overview
Ola Electric completed its IPO during the quarter ending September 30, 2024, issuing 808.7 million shares at Rs 76 per share. The total funds raised amounted to Rs 5,341 crore, after expenses. The shares debuted on the NSE and BSE on August 9, 2024.
