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Ola Electric, once the undisputed leader in the EV scooter race, is facing a double whammy – ballooning losses and falling sales. Its Q4 FY25 numbers paint a grim picture, while competitors like TVS and Bajaj have zipped ahead on the leaderboard.
Q4 FY25 results summary
| Metric | Q4 FY25 | Q4 FY24 | YoY change |
|---|---|---|---|
| Revenue | Rs 611 crore | Rs 1,598 crore | - 62 per cent |
| Net profit | - Rs 870 | - Rs 416 | 109 per cent |
That’s not a minor blip. It suggests Ola Electric’s growth engine is stalling, and fast.
Why the brakes slammed
- Market share meltdown: Ola Electric’s market share has dropped from over 50 per cent to just 20 per cent in under a year. TVS Motor now leads with 25 per cent, followed by Bajaj Auto at 22.6 per cent.
- Service issues: Ola Electric has faced criticism over poor after-sales service and technical glitches, an area where legacy automakers excel.
- Regulatory heat: The government is investigating its controversial ‘advance tip’ feature, adding to its image woes.
About Ola Electric
Founded in 2017 by Bhavish Aggarwal, Ola Electric manufactures electric scooters under the S1 series and has ambitious plans for electric motorcycles as well. Its flagship ‘Futurefactory’ in Tamil Nadu was built to churn out millions of scooters each year.
Here’s how its fundamentals look.
| Metric | Value |
|---|---|
| Market cap | Rs 23,483 crore |
| ROCE | -33.2 per cent |
| P/B ratio | 3.9 |
| Book value | - Rs 6.2 |
| EPS | - Rs 8.1 |
The final word
To regain lost ground, Ola Electric has rolled out the ‘Roadster X’, an electric motorcycle with a sporty design aimed at Gen Z and urban riders. But launching a new product in a slowing market is risky, especially when you’re burning cash. Meanwhile, to shore up funds, the company has greenlit plans to raise Rs 1,700 crore via debt.
But its execution is clearly hitting speed bumps. With rivals getting stronger and regulatory pressure mounting, the company has a lot of ground to make up.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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