Ola Electric Mobility Ltd shares tumbled 9% in early trade today after the company reported disappointing Q4 results. As of 9:17 AM, the shares were trading 5.47% lower at Rs 50.33.
The electric vehicle maker’s revenue plummeted 61.8% year-on-year to ₹611 crore, down from ₹1,598 crore in Q4FY24. Net loss widened sharply to ₹870 crore from ₹416 crore, while EBITDA loss ballooned to ₹695 crore versus ₹312 crore a year ago.
The sharp earnings miss prompted Kotak Institutional Equities to downgrade Ola Electric to ‘Sell’ from ‘Add’, slashing its target price to ₹30 — a potential 44% downside from Wednesday’s closing price.
Kotak flagged higher-than-expected EBITDA losses, driven by increased warranty provisions and weak sales volumes. The firm also recorded a staggering ₹35 billion free cash flow outflow for FY25, reinforcing concerns about sustained cash burn.
The brokerage highlighted weakening brand equity and rising competition in India’s electric two-wheeler market. Ola’s future hinges on scaling volumes and successfully launching electric motorcycles — a move Kotak views as risky given execution and credibility challenges.
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