Ola Electric Mobility’s stock is under scrutiny as it navigates through a challenging trading environment on Thursday. Recent developments have prompted the Ministry of Heavy Industries to seek answers from the company regarding a striking disparity between its reported vehicle sales and actual registrations. According to sources, inspections conducted by the Maharashtra RTO at several Ola showrooms have further intensified the investigation.

Sales Discrepancy Raises Concerns

Reports have surfaced highlighting a significant inconsistency in Ola Electric’s sales figures. While the company asserts it sold 25,000 vehicles last month, data from the Vahan Portal indicates only 8,600 registrations. This stark contrast has contributed to a steep decline in Ola’s share price, which has dropped over 40% from its initial listing of ₹76 on the NSE. Just two days ago, the stock hit a 52-week low of ₹46.37.

• Key Highlights:
  • Sales Claim: 25,000 vehicles sold
  • Actual Registrations: 8,600
  • Current Share Price: ₹46.37
  • Price Decline: Over 40% from listing

Regulatory Challenges

The sales discrepancy comes on the heels of regulatory issues faced by Ola Electric, with transport authorities in various states raising concerns about the company’s lack of trade certificates. This has led to raids on showrooms, vehicle seizures, and the issuance of show-cause notices to the company, compounding its operational challenges.

Financial Performance in Q3

Ola Electric’s financial results reveal a troubling trend, with a reported net loss of ₹564 crore for the third quarter of FY25. This figure represents a significant increase from the ₹376 crore loss recorded in the same quarter the previous year. Sequentially, the loss grew from ₹495 crore. Additionally, the company’s revenue from operations in Q3 FY25 fell by 19.36% year-on-year, totaling ₹1,045 crore, down from ₹1,296 crore in the previous year.

• Q3 Financial Overview:
  • Net Loss: ₹564 crore
  • Previous Year Loss: ₹376 crore
  • Revenue Drop: 19.36% YoY
  • Current Revenue: ₹1,045 crore

Ola Stock Performance Compared to Market

In the last five trading sessions, Ola Electric’s share price has seen a modest increase of 6.4%. However, the stock has experienced a 13% decline over the past month, resulting in a staggering loss of 51% for investors over the last six months. The stock has also diminished by more than 60% since its peak in August 2024.

In contrast, the benchmark Nifty 50 index has performed relatively better, showing a 1.88% increase in the last five days, with negligible gains over the past month. Over the last six months, the index has dipped by over 11%, but it has managed a 5% increase year-on-year.

Conclusion

As Ola Electric navigates these tumultuous waters, investors and analysts alike will be keenly observing the company’s next steps. The clarity on sales discrepancies and regulatory compliance will be pivotal in determining the future trajectory of Ola’s stock and overall business health. For more insights on market dynamics and investment strategies, check our related articles.