Shares of Ola Electric Mobility Ltd experienced a sharp decline of over 7% on Tuesday, June 3, after a significant block deal involving shares worth Rs 731 crore was executed in the morning session. Approximately 14.22 crore shares, representing 3.23% of the company’s equity, were traded at Rs 51.4 per share, marking a discount compared to the previous closing price of Rs 53.68.
Highlights:
Block deal involved 14.22 crore shares, 3.23% stake, at Rs 51.4 per share
Shares fell over 7%, trading near Rs 50.28 at 10:45 am on NSE
Hyundai Motor India likely the seller, holding 2.47% stake as per March data
Hyundai Motor India Seen as Potential Seller in the Block Deal
Market sources indicate that Hyundai Motor India may be the party offloading shares in the deal. As per the company’s March shareholding disclosures, Hyundai Motor India held a 2.47% stake in Ola Electric. The large volume trade and subsequent share price decline suggest investor apprehension following the deal.
Highlights:
Hyundai Motor India held 2.47% stake as of March
Large block deal likely involved Hyundai shares
Market reacted negatively, with shares slipping more than 6% post-deal
Ola Electric Reports Wider Q4 Loss Amid Falling Revenues and Sales
Ola Electric’s financial performance continued to weigh on investor sentiment. The company reported a net loss of Rs 870 crore for the fourth quarter of FY25, significantly wider than the Rs 416 crore loss recorded in the same quarter last year. The widening loss was attributed to steep discounts and declining sales volumes.
Highlights:
Q4 FY25 net loss widened to Rs 870 crore from Rs 416 crore in Q4 FY24
Revenue from operations plunged 62% year-on-year to Rs 611 crore in Q4 FY25
Vehicle registrations declined over 52% to 56,760 units in the quarter
Deliveries nearly halved to 51,375 units, signaling demand challenges
Management Focused on Profitability and Revenue Scaling in FY26
Despite the challenging Q4 results, Ola Electric’s management remains optimistic about the company’s future prospects. The company plans to target profitability and margin improvements in FY26 by scaling revenue and improving operating leverage. Ola Electric emphasized its robust product pipeline, vertical integration, R&D efforts, and expanding distribution and service network as key enablers to drive the next phase of electric vehicle adoption in India.
Highlights:
FY26 strategic focus on revenue growth and operating leverage
Strong product roadmap and R&D to support expansion in scooters and motorcycles
Vertical integration and service infrastructure enhancements underway
Goal set for sustainable profitability within the fiscal year
Ola Electric’s strategic approach aligns with broader industry trends favoring electric mobility, though short-term financial and operational challenges continue to affect investor confidence.
