A steep annual fall in volumes weighs on stock already trading near a record low
MUMBAI, 8th August 2025: Ola Electric’s shares fell on Tuesday following a 45.2% year-on-year decrease in electric two-wheeler sales for June, as reported by the Federation of Automobile Dealers Associations (FADA).
Market analysts said that Ola Electric’s 45.2% year-over-year decline in June sales of electric two-wheelers, which significantly underperformed an industry that grew by almost 32% during the same period, has increased scrutiny of the EV maker’s fundamentals and its capacity to maintain market share in a rapidly growing segment. The stock decreased by 1.83% to ₹40.80, hovering just above its all-time low of ₹40.42 recorded last week, continuing a three-week downtrend.
Operators took a cautious stance on the stock’s long-term performance after the company sold 20,190 vehicles in June 2025, down from 36,859 units in June 2024, raising concerns among the broking community about its growth trajectory and financial health.
“A drop of this magnitude, especially when competitors are experiencing growth, has intensified negative sentiment surrounding the stock,” said a Mumbai-based technical analyst. “Unless ₹43.90 is reclaimed soon, further declines are likely.”
The situation reflects increasing pressure on Ola Electric, which once led the market but has lost ground to established manufacturers. TVS Motor and Bajaj Auto now hold 24% and 21.8% of the electric two-wheeler (E2W) segment, respectively, continuing to dominate thanks to strong dealership networks and consistent product delivery. TVS has maintained its leadership position for the third consecutive month and throughout Q1 FY26.
Despite the considerable year-on-year drop, Ola reported 60,000 vehicle registrations in Q1 FY26, according to VAHAN data. The company is projected to achieve quarter-on-quarter revenue growth of nearly 25%, driven by what it describes as a recalibrated, sustainable growth model.
However, recent financial results have added to investor concerns. In Q4 FY25, Ola Electric’s consolidated net loss widened to ₹870 crore, more than double the ₹416 crore loss reported a year earlier. Furthermore, revenue from operations fell 59.5% year-on-year to ₹611 crore, down from ₹1,508 crore in the same quarter last year.
The stock has consistently formed a lower-low pattern on daily charts, indicating a technical downtrend. Analysts caution that a close below ₹40 could result in further declines, with price targets of ₹38 and ₹36 being discussed. “At this stage, the stock is only suitable for high-risk investors,” noted Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. “The business faces short- to medium-term challenges concerning profitability and volume growth, but existing investors may choose to hold onto their shares.”
As competitors gain momentum, Ola’s ability to stabilize sales and restore confidence in its fundamentals will be closely monitored in the coming quarters
