Ola Electric Mobility Ltd (NSE: OLAELEC) will be in sharp focus on May 30 after it reported a steep decline in Q4FY25 earnings post market hours on Thursday. The Q4 earnings impact is expected to play out in today’s trade.
In Q4FY25, the company’s revenue dropped 61.8% YoY to ₹611 crore, down from ₹1,598 crore a year ago. Net loss widened to ₹870 crore versus ₹416 crore in Q4FY24, while EBITDA loss surged to ₹695 crore, compared to ₹312 crore last year.
The sharp earnings miss prompted Kotak Institutional Equities to downgrade Ola Electric to ‘Sell’ from ‘Add’ and cut its target price to ₹30, implying a potential 44% downside from Wednesday’s close.
Kotak flagged that EBITDA losses exceeded expectations, led by higher warranty provisions and weak volumes. The company also posted a ₹35 billion free cash flow outflow for FY2025 — highlighting ongoing cash burn concerns.
The brokerage cautioned that brand equity is weakening, and competition is intensifying in the electric two-wheeler market. Kotak believes Ola’s future now depends on its ability to scale volumes and execute a successful entry into electric motorcycles, which face execution and credibility risks.
With Q4 results now public and a sharp downgrade in place, Ola Electric shares will be closely tracked by investors today.
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