Mumbai | November 6, 2025 — Shares of Ola Electric Mobility Ltd tumbled nearly 5% on Thursday, following the company’s weaker-than-expected Q2 FY2025 earnings report, which highlighted margin pressure and slower-than-projected EV deliveries.
The stock closed at ₹378.40 on the NSE, down from its previous close of ₹398.15, marking its sharpest single-day fall since July.
Earnings Miss Raises Investor Concerns
Ola Electric reported a net loss of ₹186 crore for the September quarter, widening from ₹142 crore a year earlier. Revenue from operations rose 9% year-on-year to ₹1,123 crore, but analysts flagged rising costs and muted consumer demand as key headwinds.
“The EV market is growing, but Ola’s profitability remains elusive,” said Ravi Khanna, Senior Research Analyst at Motilal Oswal. “The company faces a balancing act between market expansion and cost control.”
Gross margins contracted to 14.8%, down from 18.2% in the previous quarter, primarily due to higher raw material prices and aggressive discounting on older scooter models.
CEO Bhavish Aggarwal Stresses Long-Term Vision
In a post-earnings statement, Ola Electric CEO Bhavish Aggarwal acknowledged the short-term financial strain but reaffirmed confidence in the company’s growth trajectory.
“We are transitioning from a scooter company to a mobility and energy ecosystem,” Aggarwal said. “Our focus remains on localization, battery innovation, and building a scalable EV infrastructure.”
Ola Electric is also preparing for the commercial launch of its first electric motorcycle lineup in early 2026, which analysts say could be a “make-or-break” moment for its profitability path.
Analyst Reactions: Mixed Sentiment
The market response to Ola’s Q2 results was sharply divided.
Nomura India maintained a “Neutral” rating, citing operational challenges and competitive pricing from rivals like Ather and TVS.
Jefferies downgraded the stock to “Underperform,” warning of margin compression and delayed break-even.
ICICI Securities, however, retained a “Buy” rating, pointing to strong order inflows and the upcoming IPO listing of Ola’s battery division, which could unlock value.
“We see this as a temporary setback,” ICICI analysts noted. “The company’s vertical integration strategy could pay off in FY2026.”
EV Market Faces Headwinds
India’s electric vehicle sector, once the darling of the markets, is facing growing pressures — from supply-chain bottlenecks and battery import costs to regulatory uncertainty over FAME-III subsidies.
EV penetration in India currently stands at 7.4%, below the government’s 2030 target of 30%, as infrastructure and affordability concerns persist.
“Investors are re-evaluating growth expectations,” said Ankita Mehra, EV policy researcher at IIM Ahmedabad. “Ola Electric is a leader, but it’s leading in a volatile space.”
What’s Next for Ola Electric
Despite the short-term dip, several analysts say Ola Electric’s R&D investments, gigafactory expansion, and battery tech partnerships position it well for long-term growth.
The company has also hinted at a potential global partnership with a European automaker to co-develop high-performance electric scooters.
Conclusion
Ola Electric’s stock correction underscores both the promise and pressure of India’s fast-evolving EV market. While near-term profitability remains uncertain, the company’s ambitious expansion and product roadmap could determine whether this dip becomes a buying opportunity — or a warning sign.
