Kotak expects 44% downside in Ola Electric shares from current price after poor Q4 results

Shares of Ola Electric Mobility Ltd (NSE: OLAELEC) will be closely watched today after the company reported a weak Q4FY25 earnings post market hours on May 29. The stock had closed at ₹53.20, up 0.55% from its previous close of ₹52.91. With Q4 results announced after market hours, the full impact is expected to reflect in today’s session (May 30).

In Q4FY25, Ola Electric’s revenue plunged 61.8% YoY to ₹611 crore compared to ₹1,598 crore in Q4FY24. The company also posted a net loss of ₹870 crore, more than double the ₹416 crore loss reported in Q4FY24. Additionally, the company reported an EBITDA loss of ₹695 crore, widening from ₹312 crore a year ago.

Following these disappointing results, Kotak Institutional Equities downgraded the stock to 'Sell' from 'Add' and slashed its target price to ₹30, which implies a 44% downside from current levels.

Kotak flagged that Q4 EBITDA losses were much higher than expected, driven by higher warranty provisions and weaker volumes. The company reported ₹35 billion in free cash flow (FCF) outflows for FY2025, highlighting significant cash burn.

The brokerage expects EBITDA losses to continue, citing weakening brand equity and intensifying competition in the electric two-wheeler market. It added that Ola Electric’s future now hinges on its ability to scale up volumes and successfully enter the motorcycle segment, both of which face “execution and credibility challenges.”

Investors will be tracking Ola Electric stock movement today as the market reacts to these weak Q4 earnings and the sharp downgrade by Kotak.

Disclaimer: The views and recommendations expressed in this article are those of the respective brokerage. Business Upturn does not offer any investment advice. Investors should consult certified professionals before making investment decisions.