Bhavish Aggarwal-led Ola Electric Mobility is having run in the stock markets. The company’s share price has been under pressure, declining significantly since its market debut. Adding to its challenges, the company recently missed its target under the Production Linked Incentive (PLI) Advanced Chemistry Cell (ACC) scheme, which has raised concerns among investors.
PLI target miss and regulatory challenges
Adding to investor concerns, Ola Electric announced in a regulatory filing that its wholly-owned subsidiary received a notice from IFCI for failing to meet Milestone-1 under the PLI ACC scheme. The company is currently in discussions with authorities to address the issue and file an appropriate response.
Financial struggles deepen
Ola Electric’s financials paint a concerning picture. In Q3FY25, the company reported a net loss of Rs 564 crore, a sharp increase from Rs 376 crore in the same quarter last year. Its revenue also took a hit, falling 19.36% year-on-year to Rs 1,045 crore from Rs 1,296 crore. The previous quarter (Q2FY25) also saw significant losses, with the company reporting a net loss of Rs 495 crore.
Layoffs and cost-cutting measures
Apart from this, recent reports suggest Ola Electric is laying off over 1,000 employees and contract workers. The move appears to be aimed at prioritizing profitability, but mass layoffs could disrupt operations and signal deeper structural issues.
Stock Performance: A steady decline
Ola Electric’s stock has been struggling for months, hitting a 52-week low on March 3, 2025. While it saw a slight recovery in today’s early trading session, rising 1% to Rs 56.77 per share, the broader trend remains negative.
In the past five days, the share price of Ola Electric has dropped nearly 3%. Over the last month, it has witnessed a drop of 24%. Looking at a broader six-month period, the company’s share price has plummeted by 51%.
YTD performance: Dropped 35%
From its IPO price of Rs 76 per share in August 2024, the share price of the EV maker has seen a steep decline, currently trading at Rs 56.70. It remains close to its 52-week low of Rs 53.62, while being significantly far from its 52-week high of Rs 157.40.
Ola Electric’s IPO journey
Ola Electric debuted on the stock market on August 6, 2024, with its shares listed at Rs 76 on the NSE and Rs 75.99 on the BSE. However, its performance since listing has been underwhelming, with the stock now trading 25% below its issue price.