Hyundai, Kia sell Rs 690 crore worth of shares in Ola Electric block transaction

Hyundai Motor and Kia Corporation have divested their holdings in Ola Electric Mobility, selling shares worth Rs 690 crore in a significant block deal. This strategic exit marks a noteworthy shift for the electric vehicle sector in India. Hyundai sold 10.8 crore shares for Rs 552 crore, while Kia offloaded 2.7 crore shares, amounting to Rs 138 crore. In contrast, Citigroup Global Markets Mauritius acquired 8.61 crore shares at Rs 50.55 per share, investing Rs 437 crore in the company.

The recent share sell-off by Hyundai and Kia comes on the back of disappointing quarterly results announced by Ola Electric. The company reported a net loss of Rs 870 crore in Q4 FY25, nearly doubling from Rs 416 crore in the same period the previous year. Revenue from operations saw a sharp 62% decline year-on-year, dropping to Rs 611 crore in Q4 FY25 from Rs 1,598 crore in Q4 FY24. Vehicle registrations decreased by over 52% during the quarter.

Shares of Ola Electric fell by 8.12% to Rs 49.33 on the BSE, underperforming the Nifty, which declined by 0.7%. This decline is part of a broader trend of sustained selling pressure, with Ola Electric shares falling 46% over the past six months.

As Ola Electric navigates these challenges, the company's leadership remains optimistic about future growth. The focus on scaling operations and leveraging existing business units is expected to drive improvements in profitability.

Ola Electric Mobility has set its eyes on achieving profitability by the financial year 2026. According to the company, "FY26 will be focused on scaling revenue and operating leverage as the company marches towards sustainable profitability." The firm has made strides in improving its financial metrics, with gross margins increasing by 38% in FY25. In the first quarter of FY26, gross margins saw a further improvement by 10 percentage points compared to Q4 FY25.Recent business performance highlights indicate structural improvements for Ola Electric. "April and May 2025 have shown early indicators of structural improvements translating into business momentum. These include higher gross margins excluding PLI and reduced operating expenses, higher monetisation through add-ons, with Gen 3 sales now being over 2X that of Gen 2, and strong demand for our Roadster Motorcycles," the company stated. Ola Electric expects to maintain this momentum and reach EBITDA profitability in its auto segment by FY26.