Ola's Breakeven Goal Unrealistic

Ola Electric Mobility Ltd's shares tumbled 8% on Tuesday to ₹49, taking the loss so far in 2025 to over 40%.

- Manish Joshi

The recent drop is striking, coming when the Hyundai Motor Group, comprising Hyundai and Kia, sold their stake at a discount of about 5% to Monday's closing price of ₹53.7.

Ever since Ola scaled down its ambition of making electric cars, it has lost strategic relevance for Hyundai. The latter's exit is not surprising, especially given Ola's poor financial performance till now. The group acquired a stake in Ola in 2019.

Moreover, the fall in share price might have more to do with investors' assessment that Ola would find it challenging to meet even its revised targets after dismal March quarter (Q4FY25) results.

Ola now targets auto segment Ebitda profitability in FY26 versus the earlier guidance of Q1FY26. The commercial roll-out of battery cell manufacturing Bharat Cell, too, has been pushed back to FY26 from Q1FY26.

Ola's management expects Ebitda break even at 25,000 units per month or 75,000 units per quarter.