The sell-off in Ola Electric Mobility shows no signs of easing, with the stock falling another 4% in Friday's trade on December 05, to hit an all-time low of ₹34.81 apiece. This marks its sixth consecutive session of decline, taking the cumulative drop to 15%.
The stock has been under severe pressure since hitting a one-year high of ₹71.25 apiece in September and has since lost 51% of its value, one of the biggest sustained corrections since its listing.
Between August and September, the stock had staged a brief recovery, rising 31% in August—its biggest monthly gain on record. However, the rally was short-lived, as the shares ended the last two months with double-digit losses.
Investor sentiment toward the Bhavish Aggarwal-led company weakened following its revised sales guidance, signaling a challenging road ahead. Intensifying competition in the electric two-wheeler segment in recent years has led OLA to lose significant market share, after once being a dominant player.
As company sales remain weak, it has also shifted focus to its Battery Energy Storage System (BESS), launching Ola Shakti, designed for homes and capable of powering air conditioners, refrigerators, induction cookers, farm pumps, and communication equipment.
OLA Electric expects its annual BESS capacity consumption to reach 5 GWh over the next couple of years. However, that has done little to ease the pain for the stock.
Though OLA Electric narrowed its September-quarter net loss to ₹418 crore from ₹495 crore a year ago, it slashed full-year sales and revenue targets, citing weaker demand. The company now expects second-half sales of around 100,000 vehicles, bringing the full-year estimate to roughly 221,000 units—over 40% below its earlier projection of 325,000–375,000.
Second-quarter sales nearly halved to 52,666 units, and full-year revenue is now guided at ₹3,000–3,200 crore, down from the previous forecast of ₹4,200–4,700 crore.
Despite cutting its sales forecast, OLA maintained its core automotive margin guidance, shifting focus to profitability over volumes while betting on growth in its energy storage business to offset the slowdown in vehicle sales.
Is more crash in Ola Electric on the cards?
Anshul Jain, Head of Research at Lakshmishree, said, "Ola Electric has broken below a tight bearish flag on the daily chart, with volumes rising as the breakdown confirmed. The structure shows a clear trend of deterioration, and the slip through 40.5 signals strong seller control across timeframes. Momentum readings stay weak, and participation on down days reinforces the negative bias."
He points out that the immediate pattern targets sit near 27, where the first support cluster appears, while an extension toward 12 cannot be ruled out if selling pressure accelerates. He cautions that the risk–reward favors prudence, as any rebound attempts are likely to face supply until the stock reclaims the 40.5 zone, which now acts as the invalidation level.
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