Ola Electric Share Price Slides 34 Per Cent YTD: Know Why Stock Is Declining

Shares of electric two-wheeler manufacturer Ola Electric Ltd witnessed some relief on March 5 as the stock bounced back 6.56 per cent from an all-time low as it closed at Rs 57.14 apiece on the NSE. Notably, the stock hit its all-time low on March 4 as it traded at Rs 53.62 apiece on the NSE.

Despite the mild recovery seen by the stock on March 5, the electric two-wheeler manufacturer’s shares have slid 34.1 per cent Year-To-Date (YTD). Here’s a look at some key factors which have led to the stock’s decline:

Ola Electric Subsidiary’s Failure To Meet PLI Milestone

Ola Electric informed the exchanges on February 19 that its wholly owned subsidiary Ola Cell Technologies Private Limited (OCTPL) received a letter from the Industrial Finance Corporation of India (IFCI Ltd). The IFCI stated in the letter that the company has failed to achieve ‘Milestone -1’ for availing Production Linked Incentives for the manufacturing of advanced chemistry cells. The company entered into a Programme Agreement with the Ministry of Heavy Industries for availing incentives under the Production Linked Incentive Advanced Chemistry Cell (PLI ACC) scheme. OCTPL is focused on manufacturing lithium-ion battery cells for Ola's electric vehicles.

Declining Revenues, Increasing Losses

The electric two-wheeler maker posted a decline in its revenue on both a quarter-on-quarter and year-on-year basis in the December quarter of FY 2025-26. Additionally, the company’s net loss also widened on a quarter-on-quarter and year-on-year basis in the same period. Ola Electric’s consolidated revenue from operations for the December quarter of FY25 fell by 19.36 per cent to Rs 1045 crore from Rs 1296 crore in the December quarter of FY24. The company’s consolidated net loss also widened to Rs 564 crore in the third quarter of FY25 from Rs 376 crore in the corresponding quarter of the preceding fiscal.

On a quarter-on-quarter basis, the company’s revenue from operations for the December quarter fell by 13.92 per cent from Rs 1,214 crore in the September quarter of FY25. The company’s net loss widened in the December quarter from Rs 495 crore in the September quarter of FY25.

Second Round Of Layoffs In Five Months

The two-wheeler manufacturer initiated an internal restructuring exercise according to a report by Bloomberg. As a part of the restructuring exercise as many as 1,000 employees have been laid-off across divisions such as sales, distribution and marketing. Additionally, the company has also closed parts of its on-ground distribution network. Notably, this is the second round of layoffs by the company in the last five months. The company had earlier cut around 500 jobs in November 2024. According to a report by Reuters, the previous round of job cuts left the company with 3,824 employees as of December 31.

Consistent Decline In Share Price

Ola Electric’s share price has been witnessing a downturn since its listing. The stock listed flat earlier on August 9, 2024, at Rs 76 apiece on both the NSE and BSE. Additionally, in the nearly eight-month period following Ola Electric’s listing, the stock has declined nearly 24.81 per cent from its listing price of Rs 76 apiece. The stock has declined consistently as it has fallen 48.75 per cent in six months. The two-wheeler manufacturer’s share price has also declined 23.58 per cent in a month and 5.07 per cent in five days.