At an event before the Ola Electric IPO in August last year, the company’s founder and CEO Bhavish Aggarwal banked on one central theme to take the EV maker to profitability – high sales volumes that will drive higher revenue and lower costs at scale.

So far, neither of these has come to fruition. The EV maker’s numbers for the December quarter make for bleak reading with losses growing 50% from Q2 to INR 564 Cr. Operating revenue fell by 19% to INR 1,069 Cr as the company lost market share to new-age rivals and legacy OEMs.

On the profitability side, the widening EBITDA losses should be even more worrying for those eyeing Ola Electric for their portfolio. EBITDA loss grew to -40.7% from -19.5% — Ola’s investments for its service network expansion in the quarter resulted in worse profitability.

This is reflected in the slump in the share price of Ola Electric since the beginning of the year. Since January 1, 2025, the stock price has fallen by over 30%. In the past two weeks, Ola Electric has twice hit the all-time low, and is now trading at INR 56.85, down 64% from the all-time high, and 25% below listing price.

The company’s current market cap is INR 25,075 Cr (around $2.9 Bn at current exchange rates), whereas when it listed, this was close to $4 Bn. The value erosion at Ola Electric is reminiscent of the big slide seen by Paytm and Zomato soon after listing.

Ola Electric In Rejig Mode

And the sales or registration data does not make for great reading thus far this year, especially when one accounts for the fact that Ola Electric expects a slowdown in sales and registrations in the short term.

In January 2025, Ola Electric had 22,656 units registered with the Vahan database, up from 13,794 units in the preceding month. This gave it the top........

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