🚨 Ola Electric Share Price Falls 10%: What's Behind the Decline?

Ola Electric Mobility Ltd., one of India's most promising EV startups, is facing its toughest challenge yet. The company's shares plunged another 10% today, hitting a new low of ₹48.07 - a shocking 70% drop from its peak in August 2024 and 37% below its IPO price of ₹76. With market cap now under ₹22,500 crore, investors are asking: 

Can Ola Electric recover?

📉 Consistent Losses and Dwindling Performance

The latest numbers paint a grim picture:

• 🔥 Q4 losses doubled to ₹870 crore
• 📉 Revenue crashed 62% (₹611 crore vs last year)
• 🚗 Deliveries halved - from 1.15 lakh to just 51,375 units
• 💸 EBITDA margin at -101.4% (yes, that's negative!)

Market experts point to high warranty costs and operational inefficiencies as key culprits behind these shocking numbers.

• ⚠️ Rising warranty costs eating into margins
• 📉 Weaker-than-expected sales volumes
• ⏳ Delays in new model launches

🔍 Auditor's Red Flag: Can Ola Survive?

Auditors BSR & Co LLP dropped a bombshell in their report, questioning Ola's ability to continue as a 'going concern'. The reason? A staggering ₹2,391 crore in negative cash flows last year.

While they've signed off on the accounts, this warning has sent shockwaves through investor circles.

🚀 What's Next for Ola Electric?

The company is pinning its hopes on:

• ✂️ Aggressive cost-cutting measures
• 🔄 Transition to Gen-3 platform
• 🏍️ Upcoming electric motorcycle launches

But here's the catch - analysts have already slashed volume projections by 34% for Financial Year 2026-2027, citing slower industry growth and execution delays.

⚠️ Disclaimer: This article is for Educational purposes only and should not be considered as investment advice. 📈 Always consult a trusted advisor from MBC Trading Platform before making any investment decisions.