Ola Electric’s stock took a sharp turn downhill, tumbling over 14% in the pre-open session, not just because its March quarter losses doubled over the past year, but also because of a deeper, more troubling pattern. For four straight quarters, the electric two-wheeler maker’s consolidated losses have steadily widened, each steeper than the last. This pattern could have spooked the investors with a key question – Is this just a bump in the road?
Its consolidated loss for the fourth quarter for FY25 was almost 2.5 times the figure posted in Q1 of the same fiscal. A sharp revenue dip could have actually weighed on the company’s earnings for the period. Ola’s consolidated revenue for the March quarter plunged over 62% on year.
Including Q4, its revenue has see a sequential fall for the fourth consecutive quarter. The company’s top line for this quarter was also 63% lower than what it posted in the June quarter of the same fiscal. With both earnings and sales in reverse gear, the company has some serious ground to recover.
The steady fall in the company’s financials coincides with a steady fall in number of units it delivered in each quarter of FY25. In the June quarter, the e-two-wheeler maker delivered over two times the number of units it did in the March quarter. Its premium segment has witnessed the most steepest decline over these four quarters.
Ola said FY26 will be focused on scaling revenue and operating leverage as it marches towards sustainable profitability. Ola expects its deliveries to go up by over 26% sequentially in Q1 of FY26. It also expects its auto EBITDA margin to improve 68.6 percentage points to (-10%), according to the company’s investor presentation.
The company ended FY25 with around Rs 4,000 crore in cash and cash equivalents, keeping it well-capitalised, it said. It plans to raise up to Rs 1,700 crore through non-dilutive debt to refinance its existing loans.
At 09:43 the stock was off lows and trading 6% lower at Rs 50.09 apiece on the NSE. At its day’s low, the stock was down nearly 70% from its 52-week high level. It is 37% below its listing price on the NSE.
