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New Delhi: Shares of Ola Electric rose by 6.85 per cent on Monday, reaching Rs 93.41 on the BSE, following CEO Bhavish Aggarwal’s announcement of a significant retail expansion. The company plans to increase its store count from 800 to 4,000 by the end of December, marking one of the largest single-day store openings.
Bhavish Aggarwal took to X (formerly Twitter) to share the news, stating, "We’re expanding from 800 stores to 4,000 by this month’s end. All stores will open together on December 20 across India, probably the largest single-day store launch ever! Each store will also include service capacity to ensure better customer support."
November Sales Slump
Despite the announcement, Ola Electric faced a challenging November with sales plunging by over 33 per cent, from 41,756 units in October to 27,746 units. While the company maintained its lead in the electric vehicle (EV) market with a 25.09 per cent share, competition from rivals TVS and Bajaj Auto narrowed its margin.
TVS registered 26,036 units (23.55 per cent share), while Bajaj Auto followed closely with 24,978 units (22.59 per cent share). The overall EV market saw an 18 per cent drop in November registrations compared to October, reflecting a slowdown after the festive season.
Year-To-Date Leadership
Ola Electric remains the market leader in 2024, selling 392,176 units year-to-date and holding a 37 per cent market share. However, its dominance has fluctuated, peaking at 49.8 per cent in May before falling to 28.6 per cent in September. Festive discounts helped the company rebound to a 31 per cent share in October, but November’s sharp decline indicates increasing competition in the EV segment.
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Ola Electric Q2 Results: Financial Performance
In Q2 FY25, Ola Electric narrowed its net loss year-on-year to Rs 495 crore from Rs 524 crore in the same period last year. Revenue from operations grew by 39 per cent YoY to Rs 1,214 crore for the quarter ended September 2024. However, sequentially, losses widened from Rs 347 crore in the June quarter.
The company’s EBITDA losses for Q2 FY25 stood at Rs 223 crore, a slight improvement from Rs 321 crore in the same period last year. However, compared to Q1 FY25, the operating losses widened from Rs 65 crore. EBITDA margins improved to -28.4 per cent, compared to -46 per cent in the year-ago quarter.
Market Trends
Ola Electric’s shares have declined by 27 per cent in the past three months. The company’s market capitalization currently stands at Rs 38,559 crore. On Friday, the stock closed at Rs 87.4, down 5.9 per cent, even as the benchmark Sensex gained 0.96 per cent.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. Times Now Digital suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
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