Fri May 30 04:10:00 UTC 2025: Okay, here’s a news article summarizing the provided text about Ola Electric’s recent stock performance:
**Ola Electric Shares Plummet After Disappointing Q4 Results, Analyst Downgrade**
**MUMBAI, INDIA – May 30, 2025** – Shares of electric two-wheeler manufacturer Ola Electric Mobility experienced a sharp decline in early trading today, falling nearly 10% immediately after the market opened. The sell-off was triggered by disappointing results for the March quarter (Q4) and further exacerbated by a bearish report from domestic brokerage firm Kotak Institutional Equities.
Ola Electric’s shares were trading at ₹50.05 on the BSE at the time of writing, down 5.99%. Earlier in the day, the stock hit an intraday low of ₹48.07, a 9.71% drop. The company’s shares were listed on August 9, 2024, at ₹76 apiece.
**Weak Financials Fuel Investor Concerns**
The company’s Q4 performance revealed a near doubling of its net loss, from ₹416 crore to ₹870 crore year-on-year. Revenue also declined significantly, plummeting 61.8% to ₹611 crore. Operating losses widened from ₹312 crore to ₹695 crore. While the company projects a 23%-31% increase in adjusted revenue and a 28% increase in deliveries for the June quarter, investors appear unconvinced.
**Analyst Downgrade Adds to Pressure**
Kotak Institutional Equities downgraded Ola Electric’s rating from “Reduce” to “Sell” and slashed its target price from ₹50 to ₹30. This new target price represents a potential 60% downside from the IPO price of ₹76 and an 80% drop from the stock’s post-listing high of ₹157.
Kotak cited higher-than-expected operating losses due to significant warranty provisions and weak volume as primary reasons for the downgrade. The brokerage firm also expressed concerns about potential brand weakening and increasing competition in the electric two-wheeler market. They believe the company’s future hinges on increasing volume and the successful launch of its motorcycles, which face execution and credibility challenges.
As a result, Kotak lowered its volume estimates for Ola Electric for fiscal year 2026-27 by 32%-34%, taking into account the delay in launch of motorbikes.
Despite cost-cutting measures, a transition to the Gen-3 platform, and expectations of reduced warranty costs, Kotak believes weaker-than-expected volume growth remains a significant headwind for Ola Electric.
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