Ola Electric Continues To Tumble, Slumps Over 8%

Core Viewpoint - Ola Electric's shares have been under significant selling pressure, primarily due to a recent top management reshuffle, alongside ongoing issues such as high losses, regulatory challenges, and intense competition [1][3]. Company Performance - Ola Electric's stock has declined over 56% in the past 12 months and is on track to close in the red for the 10th consecutive trading session, with shares trading at INR 32.79, down over 8% during intraday trading [1][2]. - The company's market capitalization is approximately INR 14,489.58 Cr (about $1.7 billion) [2]. Management Changes - The recent resignation of CFO Harish Abichandani, effective January 19, has contributed to the current selling pressure [3]. - Deepak Rastogi, former group CFO of Puravankara Ltd, has been appointed as the new CFO, bringing extensive experience from various multinational and Indian companies [4]. Financial Performance - Ola Electric reported a 43% decline in operating revenue to INR 690 Cr in Q2 FY26 compared to INR 1,214 Cr in the same quarter of the previous fiscal year, with a sequential decline of 16.7% from INR 828 Cr [5]. - The net loss for the quarter narrowed by over 15% year-on-year to INR 418 Cr as the company shifted its focus towards profitability in the automotive segment [5]. Market Position - The auto segment of Ola Electric achieved EBITDA profitability in Q2 FY26; however, vehicle registrations fell by over 51% year-on-year to 1.99 lakh units, leading to a decrease in market share in the two-wheeler EV segment from 35.5% in 2024 to just over 15% [6]. - The broader Indian equities market has been experiencing volatility, which may be impacting Ola Electric's stock performance [6][7].