Monday was no less than a nightmare for all those people investing in the stock market, who had believed in the growth story of Ola Electric. Ola shares have once again seen huge selling, due to which the stock has touched its all-time low. Investors who were hopeful that the company’s performance would improve after the listing, have got a deep shock after the third quarter results. The situation is such that this share has fallen by more than 80 percent from its record high of ₹ 157 and has now slipped below Rs 29. Talking about today, Ola Electric shares have seen a decline of more than 6%.
The results broke the expectations of investors
The main reason for this huge decline is the very weak financial results of the company. The figures presented by Ola Electric for the third quarter (Q3) of the financial year 2025 were much worse than market expectations. The company’s income has fallen by 57% on an annual basis to just Rs 504 crore, which was Rs 1,172 crore in the same quarter last year. Although the company’s loss reduced slightly to Rs 487 crore, such a huge decline in income has worried brokerage firms.
Brokerage firm Emkay Global has completely changed its opinion regarding Ola Electric. He has downgraded the stock’s rating to ‘Sell’ from ‘Buy’ and reduced the target price from ₹50 to ₹20. This means that experts feel that there is still more decline left in the stock.
Why are shares going into the abyss?
According to market experts and independent market expert Abhishek Bhatt, Ola Electric is facing many challenges simultaneously. The biggest problem is declining sales. Where earlier Ola’s market share was very high, now it has come down to fifth place (6% share). Old and trusted companies like TVS, Bajaj and Hero have become aggressive in the market with their electric scooters, due to which the pressure on Ola has increased.
Apart from this, uncertainty regarding the government’s subsidy policies (FAME) and the company’s continuous cash burn are also scaring investors. MK Global’s report shows that the company’s net cash, which was earlier positive, has now turned into net debt (debt). However, CEO Bhavish Aggarwal says that the big round of investment has been completed and now the focus will be on increasing capacity, but the market does not seem to believe these promises at the moment.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money related decisions.