Ola Electric Shares Plunge 7% as Sales Lag, but Helios Mutual Fund Adds to Portfolio
Ola Electric's shares dropped 7.2% to Rs 49.48 following VAHAN registration data showing the company's sales falling behind competitor Ather Energy. Ola recorded 9,522 vehicle registrations compared to Ather's 10,248 as of August 20. The decline comes after a recent two-day rally that had pushed the stock up by 29%. The company reported a consolidated net loss of 428 and revenues of 828 in its recent quarterly results, with gross margins improving to 26%. Despite market challenges, Helios Mutual Fund has added Ola Electric to its portfolio, citing potential in the EV two-wheeler space.

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Ola Electric Mobility , a prominent player in India's electric vehicle (EV) market, experienced a significant setback as its shares tumbled 7.2% to Rs 49.48. The decline comes in the wake of recent VAHAN registration data, which revealed that Ola Electric's sales have fallen behind its competitor, Ather Energy.
Sales Slip Behind Competitor
According to the latest VAHAN registration data, Ola Electric recorded 9,522 vehicle registrations as of August 20, while Ather Energy surged ahead with 10,248 registrations. This shift in sales figures suggests that Ola Electric's market share may have slipped below that of its rival, marking a notable change in the competitive landscape of India's EV industry.
Market Volatility and Recent Performance
The sharp decline in Ola Electric's share price follows a recent two-day rally that had pushed the stock up by 29%, reaching a near three-month high. However, this positive momentum was short-lived as investors reacted to the latest sales data.
Potential GST Policy Impact
Adding to the company's challenges, the Indian government is considering a reduction in GST rates for small cars from 28% to 18% by Diwali. Analysts warn that this potential policy change could have adverse effects on EV adoption by narrowing the price gap between electric vehicles and traditional internal combustion engine vehicles.
Financial Performance
Ola Electric's recent quarterly results paint a mixed picture:
Metric | Value |
---|---|
Consolidated Net Loss | 428 |
Revenues | 828 |
Gross Margins | 26.00% |
Despite the increased net loss and halved revenues compared to the previous year, the company has managed to improve its gross margins to 26.00%. Management expects the auto business to turn EBITDA positive in the second quarter.
Stock Performance
The recent 7% drop contributes to a broader downtrend for Ola Electric's stock:
- Year-to-date: Down 42.00%
- Past year: Down 64.00%
Helios Mutual Fund Adds Ola to Portfolio
Despite the recent market challenges, Helios Mutual Fund CEO Dinshaw Irani announced the addition of Ola Electric to their portfolio, citing potential in the EV two-wheeler space. Irani highlighted Ola Electric's improved profitability and management's focus on Generation III bikes with indigenous batteries.
The fund believes the worst is over for Ola Electric, pointing to margin improvements from the March quarter to June quarter. Irani noted that while Ola Electric previously lost market share and rolled losses, recent quarterly results showed the company addressing profitability concerns, with most Generation I bikes warranties completed and 60.00% of Generation II bikes cycle finished.
Helios maintains a bullish stance on domestic consumption stories and expects GST rate rationalization to fuel positive market momentum. The fund has also added another two-wheeler player to their portfolio alongside existing holdings in Ather and Bajaj Auto.
As Ola Electric navigates these challenges and opportunities, investors and industry observers will be closely watching how the company responds to the changing competitive landscape and potential regulatory shifts in the Indian EV market.
Historical Stock Returns for Ola Electric Mobility
1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
---|---|---|---|---|---|
-3.32% | +14.43% | +17.48% | -20.98% | -64.06% | -48.26% |