Ola Electric shares tumble over 5% to hit 52-week low; here’s why

Shares of Ola Electric Mobility declined 5.5% to hit its 52-week low of ₹53.71 per share on both the equity benchmark indices. During the intraday trade, the scrip was trading 3.31% lower at ₹54.95 apiece on NSE.

At close, Ola Electric shares settled ₹54.90 apiece on NSE, losing 3.4%.

After making a stellar debut on the stock exchanges in August 2024, Ola Electric's shares have tanked 66% from the peak of ₹157.53 and ₹157.40 apiece on the BSE and NSE, respectively.

According to reports, SoftBank-backed Ola Electric Mobility is laying off employees in several divisions, including customer relations, fulfilment and procurement.

This will be a second round of layoffs after the company in November last year laid off nearly 500 employees, the reports said, adding that the layoffs have been triggered due to the automation of some of the company's customer relation operations.

Last week, the Bhavish Aggarwal-led electric two-wheeler company said it sold 25,000 units in February and reached a market share of over 28%, cementing its leadership in the electric two-wheeler segment.

The company said it achieved the sales milestone on the back of the S1 portfolio and a sales-and-service network of 4,000 stores across the country.

The company has recently announced the renegotiation of contracts with its vehicle registration agencies. The move is aimed at reducing costs and streamlining the registration process, it said.

Ola Electric reported a widened consolidated net loss of ₹564 crore for the December quarter of the current fiscal year (Q3 FY25) as compared to ₹376 crore in the year-ago quarter.

The company's consolidated revenue from operations stood at ₹1,045 crore, down 19.36% year-on-year (YoY) when compared to Q3 FY24.

On a standalone basis, it posted a net profit of ₹33 crore for Q3 FY25 as against a net loss of ₹14 crore posted in the year-ago period.