Ola Electric shares fell by 8.03% on Tuesday, closing at ₹49.33, as investors reacted to the company’s disappointing fourth quarter FY25 results and concerns over profitability. The stock has now halved from its all-time high of ₹100, hit in December 2024, just four months after listing, marking a steep erosion in investor wealth. From its issue price of ₹76, the stock is now down 35%.

The decline comes amid a surge in trading volumes with 24.85 crore shares changing hands—nearly six times the average weekly volume of 4.31 crore. The company’s market capitalisation now stands at ₹22,037 crore, sharply down from ₹40,218 crore on the listing day in August 2024. While there is market buzz about a 3.2%-equity stake worth ₹731 crore being offloaded via a block deal, no such transaction has been confirmed by exchanges.

The stock had closed at ₹53.69 on Monday, buoyed by government announcements of a new electric vehicle (EV) manufacturing incentive scheme to promote domestic production. But those gains quickly reversed as the market digested weak earnings data.

For the January-March quarter, Ola Electric reported a net loss of ₹870 crore, more than double the ₹417 crore loss in the same quarter last year. Full-year losses widened to ₹2,276 crore in FY25, up from ₹1,586 crore in FY24.

Revenue dropped sharply as well—it plunged 62% year-on-year to ₹611 crore in the fourth quarter, while it declined 9.38% to ₹4,645 crore in the whole financial year. The company’s EBITDA loss widened to ₹512 crore in Q4, compared to ₹154 crore a year earlier.

Ola Electric also saw its market position weaken. In May 2025, the company reported a 51% year-on-year decline in sales, slipping to third place in the electric two-wheeler segment.

Despite the steep fall, analysts have a ‘Hold’ rating, with a revised target price of ₹59, implying a potential upside of nearly 20% from current levels. Still, they caution that profitability pressures, sliding market share, and intensifying competition will remain key headwinds in the near term.