Ola Electric shares tumble over 6% today. Here's why

India Today

4 days ago

Shares of Ola Electric Mobility took a sharp hit on Tuesday, falling over 6% in early trade on the Bombay Stock Exchange (BSE), following a reported block deal and growing concerns over the company's financial performance.By 10:15 am, the stock was trading at Rs 50.52, down 5.9%, after reports of a large equity transaction rattled investors.The block deal involved 3.2% of the company's equity. CNBC-TV18 reported that approximately 14.22 crore shares, translating to a 3.23% stake and valued at Rs 731 crore, changed hands at Rs 51.4 apiece.advertisement
Furthermore, sources told the publication that the seller in this transaction is likely to be Hyundai.The block deal comes at a time when Ola Electric's stock has been steadily declining. The scrip has lost 46% over the last six months, 11.4% in the past three months, and 4.1% over the last week, even though it has managed to gain 3.7% over the past month.The fresh sell-off follows a disappointing set of quarterly earnings. Last Thursday, Ola Electric reported a net loss of Rs 870 crore for the March 2025 quarter, more than double the Rs 416 crore loss reported in the same quarter a year earlier. Revenue from operations also fell sharply to Rs 611 crore, down from Rs 1,598 crore in Q4FY24.For the full financial year, the company's net loss widened to Rs 2,276 crore, compared with Rs 1,584 crore in FY24. Annual revenue dropped to Rs 4,514 crore from Rs 5,010 crore.advertisementDespite these weak numbers, the EV startup struck an optimistic note. 'FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability,' Ola Electric said in a filing. It added that gross margins improved by 38% in FY25, with Q1FY26 already seeing a 10-percentage-point margin improvement over the March quarter.From a technical standpoint, Ola Electric's stock is showing signs of weakness. It is currently trading below five out of eight key simple moving averages (SMAs), including the 5-day, 10-day, 100-day, 150-day, and 200-day averages, which is a sign that near- to long-term momentum is under pressure.However, not all indicators point to gloom. The Relative Strength Index (RSI) is at 57.7, suggesting that the stock is still in neutral territory and neither overbought nor oversold.Meanwhile, the Moving Average Convergence Divergence (MACD) stands at 0.4 and remains above both the signal and centre lines, hinting at a possible continuation of a nascent bullish trend.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)