The stock price of the Indian electric vehicle maker Ola Electric Mobility saw massive losses on the first trading day of the week after releasing its earnings report covering the months of October to December.
All-Time Low
The company’s share dropped nearly 7% to an all-time low of Rs 28.81 on Monday, Feb. 16. The dismal price marks the first time that the company’s stock price fell below the Rs 30-mark.
Ola Electric’s stock is now 82% lower than the all-time high of Rs 157.40, which was recorded in August 2024 following the company’s market debut.
The company’s share price fell deep into the red zone after reporting a revenue of Rs 504 crore for the last quarter, which represents a 57% year-over-year drop from Rs 1,172 crore and a 33% decrease from the Rs 756 crore reported in the previous quarter.
The development prompted the India-based financial services company Emkay Global to downgrade Ola Electric’s share from “buy” to “sell” and to cut the stock’s target price from Rs 50 to Rs 20.
Structural Reset
Despite the revenue slump in the last quarter, Ola Electric said that it used the period to strengthen the foundations of the business. Among the company’s plans are to reduce its store network to 700 locations and reduce its quarterly operating expenses from Rs 430 crore in Q3 to Rs 250-300 crore.
“Q3 FY26 marks a structural reset for Ola Electric. We used this period to strengthen the foundations of the business, restoring service execution, resetting our cost structure, deepening vertical integration and advancing our Gigafactory ramp,” Ola Electric said in its shareholder letter for Q3 FY26.
The company said that the heavy build phase is already over.
Source: https://coinpaper.com/14644/ola-electric-share-price-plummets-7-to-all-time-low-following-ev-maker-s-q3-structural-reset
