Ola Electric stock tumbles 6% in two days as Q3 loss widens, revenue dips

Ola Electric shares have fallen 6 per cent over the last two trading sessions, with Monday’s decline of 3.44 per cent dragging the stock to Rs 67.61 on the BSE. The drop came after the company reported a net loss of Rs 564 crore for Q3FY25, significantly widening from Rs 376 crore in the year-ago period. The company’s revenue also took a hit, slipping 19 per cent year-on-year to Rs 1,045 crore from Rs 1,296 crore in Q3FY24, reflecting weaker demand and pricing pressures.

Sequential dip in revenue and deliveries

On a quarter-on-quarter basis, Ola Electric’s losses deepened from Rs 495 crore in Q2FY25, while revenue fell from Rs 1,214 crore in the previous quarter. Despite cost-cutting measures bringing expenses down to Rs 1,505 crore from Rs 1,593 crore in Q2, the company remained in the red. Deliveries declined to 84,029 units in Q3FY25, compared to 86,775 units in Q3FY24 and 98,619 units in Q2FY25. The premium segment accounted for 29,283 units, while 54,746 units came from the mass-market segment.

Brokerage remains bullish despite weak earnings

Despite the company’s widening losses, Goldman Sachs retained a ‘Buy’ rating on Ola Electric with a target price of Rs 101. The brokerage firm noted that revenue came in stronger than expected as post-festive discounts had a smaller impact than anticipated. Analysts also pointed out that Ola Electric’s upcoming Gen 3 portfolio would feature greater in-house component integration, potentially improving cost efficiencies and boosting margins in the future.

Challenges persist as demand slows

While Ola Electric continues to expand its portfolio, the company faces headwinds, including weaker consumer sentiment and pricing pressures. The decline in deliveries suggests slowing demand, and the company will need to address cost challenges to regain investor confidence. With the stock already down 6 per cent in two days, market participants will closely watch future earnings for signs of a turnaround.

Outlook: Can Ola Electric turn the tide?

The company’s focus on cost management and internal component production could support long-term growth, but near-term volatility is likely. As the EV sector remains competitive, the success of Ola Electric’s upcoming models will be key in determining whether it can reverse its financial trajectory. Investors will be looking for sustained revenue growth and better cost control in the coming quarters to justify Goldman Sachs’ optimism.