Ola Electric Shares Slide 10% After ₹870 Crore Q4 Loss, Revenue Plunges 62%

Prime Highlights :

Ola Electric shares fell nearly 10% after it lost ₹870 crore in Q4 FY25.

Its revenues fell a record 62% YoY, and alarm bells rang in the investors’ community.

Key Facts :

Net loss in Q4 FY25 had already exceeded ₹870 crore from ₹416 crore in Q4 FY24.

Its revenues fell to ₹611 crore from ₹1,598 crore in the previous year.

Key Background :

Ola Electric, one of the younger Indian electric vehicle companies, is now in very serious financial and operational trouble. The company’s share price has dropped over 60% from its listing level of ₹76 per share since its August 2024 listing on India’s public share market, a sign of poor investor sentiment.

The largest dip occurred in Q4 FY25, when the firm posted a net loss of ₹870 crore, over two times the ₹416 crore net loss during the same quarter previous year. The topline also declined, with revenue decreasing 62% to ₹611 crore. Reasons for this were weak demand, increased competition, and internal inefficiencies. But Ola Electric credited the increase in gross margins due to improved cost discipline and restructuring.

The company is also in legal trouble. In March 2025, its factory that manufactures electric vehicles was served a petition of insolvency by Rosmerta Digital Services for unpaid amounts. This once again stoked the company’s troubles and added to its pressure on the stock performance.

At the same time, Ola Electric’s sales of its scooters were also falling steeply. In February 2025, it could sell only 8,647 units of its scooters, far lower than its earlier claims of selling more than 25,000 units a month. In an attempt to stop the hemorrhage, Ola adopted draconian measures to reduce costs. This included scaling back expenses, automating business- and customer-facing functions, as well as general business functions.

Subject to these issues, there is some positive news in the company. Ola Electric has signaled breaking even in FY26. Company management is optimistic that with improved operating efficiency, cash burn, and management of margins, the company will turn around its fate and regain market confidence in the new EV space in India.