Ola Electric Shares Crash Over 9% as Losses Double and Sales Plunge 62%

In a significant blow to investor confidence, Ola Electric Mobility Ltd. saw its shares plummet by as much as 9.7% on Thursday—its steepest intraday drop since April 7—after the company reported quarterly losses that more than doubled year-on-year, amid a staggering decline in sales.

The EV player’s net loss surged to ₹416 crore ($102 million) in the quarter ended March 31, compared to ₹87 crore during the same period last year. The stock, which had soared after a successful IPO in August 2024, has now tumbled over 40% in 2025 alone, signalling deepening investor concerns over the company’s operational and reputational challenges.

Ola Sales Slump, Costs Slide, But Troubles Remain

Revenue for the quarter declined a jaw-dropping 62% year-on-year to ₹611 crore, as the company grappled with weakening consumer sentiment and a tarnished brand image. Although total costs fell 31% to ₹131 crore and raw material costs dropped 74% to ₹350 crore, these savings were insufficient to offset the steep decline in sales.

Other income rose 60% to ₹117 crore, providing a modest cushion, but it did little to temper fears of long-term viability. Ola Electric also revealed plans to raise non-dilutive debt of up to ₹17 crore to manage existing repayment obligations.

Government Scrutiny and PR Troubles Add Fuel to the Fire

Much of Ola Electric’s recent troubles stem from ongoing government scrutiny and legal setbacks. The company came under fire for allegedly inflating monthly sales figures by counting bookings of yet-to-be-launched e-scooters and electric motorcycles. This raised regulatory eyebrows, prompting raids and vehicle seizures by state transport authorities due to violations like missing trade certificates.

The brand’s image suffered another setback following a high-profile social media dispute between founder Bhavish Aggarwal and a celebrity critic. The public backlash led to a surge of customer complaints online, many of which highlighted unresolved service issues and dissatisfaction with Ola’s flagship scooter models.

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From IPO Darling to Industry Headache

Bhavish Aggarwal’s Ola Electric was once hailed as the future of India’s electric mobility revolution. Its IPO was met with overwhelming demand, and its sleek product lineup positioned it as a disruptive force in the electric vehicle (EV) space. But today, the company is struggling to retain that momentum. Amid mounting financial losses, a steep decline in trust, and mounting regulatory pressure, many analysts are questioning whether the company can turn the tide.

For now, Ola Electric remains under the microscope, both from regulators and investors, as it scrambles to stabilise operations and repair its reputation in India’s rapidly evolving EV landscape.