New Delhi, May 30 (IANS) Kotak Securities on Friday slashed its share price target on Ola Electric by 40 per cent to Rs 30 from Rs 50, citing continued losses and rising competition.
Ola Electric Mobility shares nosedived 9.7 per cent to their intraday low of Rs 48.07 on the BSE during the trade after the electric two-wheeler maker reported a sharp rise in losses for the March quarter.
Kotak Securities flagged two main concerns. It expects EBIDTA losses to continue, driven by weakening brand equity and intensified competitive pressure.
Second, Kotak highlighted that Ola Electric’s future depends on scaling up volumes and executing its motorcycle plans. The firm, however, warned that the motorcycle foray faces execution and credibility challenges.
The brokerage added that the company needs to scale up volumes to avoid a looming cash crunch.
Bhavish Aggarwal-led electric vehicle maker’s financial performance took a sharp beating in the fourth quarter (Q4) of FY25, as the Bhavish Aggarwal-led electric vehicle maker on Thursday reported a steep drop in revenue and a two-fold increase in net losses on year-on-year (YoY) basis.
The company posted a net loss of Rs 870 crore for the January–March quarter (Q4), up from Rs 416 crore in the same quarter previous fiscal (Q4 FY24), according to its stock exchange filing.
Revenue from operations fell significantly to Rs 611 crore in Q4 FY25, marking a 61.8 per cent decline from Rs 1,598 crore a year ago. This is one of the company’s worst quarterly revenue performances since it began commercial deliveries of its electric two-wheelers in late 2021.
The drop comes amid rising competition in the electric scooter market, regulatory uncertainty around government subsidies, and inventory correction across dealerships. For the full year FY25, Ola Electric’s revenue also fell to Rs 4,645 crore, down from Rs 5,126 crore in FY24.
–IANS
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