Bhavish Aggarwal-run Ola Electric reported a huge 43% increase in net loss at Rs 495 crore for July-September quarter (Q2 FY25), from Rs 347 crore in the preceding quarter of Q1 FY25, as the EV firm remained mired with issues related to service quality across the country.
The electric two-wheeler company's revenue also slid 26.1 per cent to Rs 1,214 crore, on-quarter, from Rs 1,644 crore in the first quarter of this fiscal.
The net loss did manage to narrow, though, on a year-on-year basis.
Market share also plunged to 33 percent in Q2, a significant drop from 49 percent from the previous quarter.
Experts claim that increased competition and service network challenges dent Ola Electric market leadership.
The stock of Ola Electric on Friday fell to all-time low Rs 72 per piece. The company's share has now fallen more than 55% from its all-time high of Rs 157.40. The issue made public debut at Rs 76.
According to market experts, company stock can further slip below the Rs 70 mark. That is because the stock at present has a weak stance and remains within a 'no-trade' zone, market analysts said.
If Ola Electric's stock remains below its IPO price of Rs 70 for a few days, then selling by institutional investors and retail investors may push the stock a little more. Selling is seen in shares at every level. Investors must steer clear of this stock in the midst of continued weakness and invest in companies with strong fundamentals, they added.
The weak sales figures combined with the lousy service being provided by Ola Electric explain why the shares of the company are doing so weakly.
Meanwhile, while Ola Electric claims to have settled 99.1 percent of the 10,644 complaints filed with the Central Consumer Protection Authority (CCPA) regarding the poor after-sales service, the Department of Consumer Affairs is critically examining responses filed by the Bhavish Aggarwal-run EV firm, which will correlate each consumer complaint with the company's claims.
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