Ola Electric Share fell more than 5%, after the loss increased continuously, the analyst said – the price will go down by 44%

News Topical, Digital Desk : Electric two-wheeler company Ola Electric Mobility is suffering huge losses due to its consistently poor performance. This has increased dissatisfaction among customers. The company's auditors have expressed concern over its 'going concern' status, and brokerage firms have predicted a decline of up to 44% in the stock. After the March quarter results, Ola Electric shares were seen trading with a decline of more than 5%.

In the March quarter, Ola Electric's loss has once again doubled. The company's net loss stood at ₹ 870 crore, which has been increasing continuously for the last four quarters. During this period, income fell by 62% to ₹ 611 crore, which was higher in Q4 last year. Delivery also declined from 1.15 lakh units to 51,375 units. The company's EBITDA margin stood at -101.4%, which was due to high provisioning costs and low operating leverage.

Ola Electric said that the market share has been under pressure in recent quarters, as the industry growth is slow and the company is facing challenges in its operations. 

A big fall is expected in Ola Electric shares. Domestic brokerage firm Kotak Institutional Equities reduced the stock's rating from 'Reduce' to 'Sell'. The brokerage cut the target price to ₹30 from ₹50 earlier, down 44% from the previous close of ₹53.24. Kotak said Ola's EBITDA loss was higher than expected as warranty provisions were high and volumes remained low. "Ola Electric's future hinges on increasing volumes and success in the motorcycle segment, but there are operational and reliability challenges," the brokerage said. Kotak lowered FY26-27 volume estimates by 34% as growth in the EV two-wheeler industry is slow and motorcycle launches are delayed. However, cost reduction, shift to Gen-3 platform, and reduction in warranty costs are expected to improve profits from this year. 

What is the company's biggest concern? The biggest concern was expressed by the company's auditors BSR & Co LLP. They gave their opinion on the FY25 results and questioned the company's 'going concern' status. This has raised questions about the company's financial stability and ability to continue for the next 12 months. Auditors said that the negative operating cash flow of ₹ 2,391 crore in the year is the reason for this concern. He said, "Our conclusion is based on audit evidence, but future events may prevent the company from running as a 'going concern'." Ola Electric Mobility, started in Bengaluru in 2017, raised ₹ 6,145.56 crore from its IPO in August 2024. The company manufactures electric vehicles and also manufactures key components such as battery packs, motors, and vehicle frames.

Read More: These five stocks can give you a tremendous return of more than 70 percent! Brokerage firm gave 'BUY' rating