Shares of Ola Electric Mobility Ltd. took a sharp hit on May 30, falling nearly 6% in intraday trade following the announcement of dismal fourth-quarter earnings for FY25. The electric vehicle (EV) manufacturer reported a significantly wider net loss of ₹870 crore for the January–March quarter, more than double the ₹416 crore loss in the same period last year. Despite management assurances of a turnaround in FY26, the market reaction was swift and bearish amid investor concerns around falling revenues, declining delivery volumes, and deteriorating profitability.
Net Loss Balloons Amid Weak Sales and Hefty Discounts
The sharp erosion in Ola Electric’s bottom line during Q4FY25 was largely attributed to aggressive discounting and a sequential drop in product demand. The company’s net loss surged by 109% year-on-year to ₹870 crore, exposing the underlying weakness in both demand and cost structure.
This came as revenue from operations plummeted 62% YoY to ₹611 crore in Q4FY25, compared to ₹1,598 crore in the corresponding quarter of FY24. The plunge in top-line growth was further reflected in vehicle registrations, which dropped over 52% to 56,760 units for the quarter. Deliveries too were severely impacted, nearly halving to 51,375 units, putting further pressure on operational efficiency.
Highlights:
Net loss widened to ₹870 crore in Q4FY25 from ₹416 crore in Q4FY24.
Revenue declined 62% YoY to ₹611 crore.
Deliveries dropped to 51,375 units; registrations fell 52% YoY.
EBITDA Margin Deterioration Signals Operational Stress
One of the most concerning metrics from Ola Electric’s Q4FY25 earnings was the collapse in EBITDA margin, which dropped to a staggering -101.4%, down from -16.4% in the same quarter a year ago. The negative margin points to severe inefficiencies in cost control, particularly as sales volumes and unit pricing came under pressure from promotional schemes and increased competition.
Despite the negative outlook for the fourth quarter, the company projects a turnaround in the first quarter of FY26. Ola expects its EBITDA margin to improve significantly to -25%, supported by an increase in delivery volumes to 65,000 units. Co-founder and CEO Bhavish Aggarwal emphasized the company’s focus on vertical integration, cost rationalisation, and leveraging R&D to drive gross margins up to 28–30% in Q1FY26.
Highlights:
EBITDA margin crashed to -101.4% in Q4FY25.
Company targets EBITDA margin of -25% in Q1FY26.
Gross margins expected to improve to 28–30% in Q1FY26.
Management Eyes Profitability in FY26 with Revamped Strategy
In an official statement accompanying the earnings release, Ola Electric’s management reiterated its focus on achieving sustainable profitability in FY26. The company pointed to its robust product roadmap, ongoing vertical integration efforts, and strengthening of distribution and service infrastructure as key levers for growth in the coming quarters. Ola is also betting big on the motorcycle segment, where it aims to carve out market share amid rising EV adoption in India.
Despite the management’s optimism, investors appear to be taking a cautious stance as the current financials reveal significant execution risks. The company’s past overdependence on price-led sales tactics, combined with underwhelming customer retention and rising competition from incumbents and startups alike, raises questions on the viability of its revised roadmap.
Highlights:
FY26 to focus on revenue scaling and operating leverage.
Ola to pursue growth across scooters and motorcycles.
Vertical integration and expanded distribution cited as key enablers.
Stock Performance and Market Sentiment: Volatile with Downward Bias
While Ola Electric’s shares are down nearly 42% in calendar year 2025, the stock has managed to gain over 3% in the past one month, driven partly by speculative interest and anticipation around improved first-quarter performance. However, the 6% fall on May 30 underscores investor skepticism, especially in light of deteriorating fundamentals.
The stock was trading at ₹53.24 on May 29, just ahead of the earnings announcement. Post-results, analysts remain divided on the stock’s prospects, with contrasting views from top brokerages adding to market uncertainty.
Highlights:
Shares fell nearly 6% on May 30 post earnings.
Year-to-date stock price decline stands at ~42%.
1-month price trend remains mildly positive at +3%.
Kotak Institutional Equities Issues Downgrade, Sees 44% Downside
In a notably bearish outlook, Kotak Institutional Equities downgraded Ola Electric’s stock and slashed its target price to ₹30, implying a sharp 44% downside from the previous close. The brokerage warned of prolonged EBITDA losses and cited deteriorating brand equity as a major concern. It also flagged Ola’s expansion into motorcycles as fraught with “execution and credibility risks,” especially given the firm’s ongoing cost optimisation and delayed cell integration efforts.
Kotak’s commentary reflects growing worries about Ola’s ability to compete effectively as the Indian EV market becomes increasingly saturated and pricing pressure intensifies.
Highlights:
Kotak slashes target price to ₹30 per share.
Downgrade based on continued EBITDA losses and brand weakness.
Motorcycle segment flagged as risky from an execution standpoint.
Goldman Sachs Maintains Buy Call, Sees 31% Upside
In contrast to Kotak’s downbeat assessment, Goldman Sachs retained its ‘Buy’ recommendation on Ola Electric, assigning a target price of ₹70 per share. This implies a 31% upside from current levels, based on expectations of operational improvements, cost efficiencies, and future growth in EV adoption.
Goldman Sachs appears to be placing faith in Ola’s long-term EV vision, despite current volatility. The firm’s optimistic stance suggests confidence in the company’s ability to execute on its roadmap, particularly if deliveries and margins rebound as projected in Q1FY26.
Highlights:
Goldman Sachs retains ‘Buy’ rating with ₹70 target.
Expects margin improvement and increased EV penetration to drive growth.
Forecasts 31% upside from pre-results share price.
