Ola Electric hit by volume slump, market share loss as Q3 revenue plunges

Ola Electric's Q3FY26 revenue fell 55% amid a steep drop in scooter volumes, triggering a 7% slide in its stock as brokerages flagged prolonged turnaround risks and ongoing market share erosion

Shares of electric vehicle (EV) maker Ola Electric Mobility fell nearly 7 per cent to a fresh low on Monday after its revenue growth in the third quarter (October–December/Q3) of 2025–26 (FY26) slowed, with analysts warning that any turnaround could be prolonged. The stock declined for the third straight session and is currently trading at 2.1x its average 30-day trading volume, according to Bloomberg. The counter is down 20 per cent so far this year, compared with a 2.5 per cent decline in the benchmark Nifty 50. Ola Electric’s market capitalisation stands at ₹12,716 crore.

 

The EV maker reported a consolidated net loss of ₹487 crore in Q3, narrower than ₹564 crore in the same quarter last year. Revenue from operations fell 55 per cent year-on-year (Y-o-Y) to ₹470 crore from ₹1,045 crore in Q3 of 2024-25. Sequentially, revenue declined about 32 per cent from ₹690 crore in the July–September (Q2) quarter of FY26. The drop was driven by a sharp fall in scooter sales to 32,680 units in Q3FY26 from 84,029 units a year earlier. The company, however, said its consolidated gross margin improved to 34.3 per cent, up 15.7 percentage points Y-o-Y.

 

Kotak Research has maintained a ‘sell’ rating while cutting its target price to ₹20 from ₹25. The brokerage said operating losses were higher than expected due to an increase in other expenses, adding that the company’s lack of a clear strategy to arrest its sharply declining market share and lower-than-expected volume offtake remain concerns.

 

Kotak has cut its 2026-27 through 2027-28 volume assumptions by 33–34 per cent, citing moderation in the electric two-wheeler (e2W) industry growth in recent months, driven by higher demand for internal combustion engine-powered scooters following goods and services tax cuts.

 

Emkay Global Financial Services has downgraded Ola Electric to ‘sell’, slashing its target price by 60 per cent to ₹20 from ₹50, citing concerns over the company’s survival amid sharp operational deterioration. The brokerage observed that Ola Electric reported a weak Q3, with revenue declining 55 per cent Y-o-Y due to a 61 per cent fall in volumes. While the broader e2W theme remains intact and the industry continues to see healthy growth, Ola Electric has continued to lose ground, Emkay said. Volumes fell to about 32,000 units during the quarter, alongside a sustained erosion in market share.

 

Emkay said any turnaround is likely to be prolonged and challenging, especially as incumbents sharpen their focus and competitors such as Ather Energy scale up operations. A revival would require the company to maintain a strong cash balance to weather this phase, it added. However, a potential upside risk could come from a strategic stake sale in the battery business, which could lead to a meaningful cash infusion.

 

“Q3FY26 marks a structural reset for Ola Electric. We chose to fix the fundamentals by restoring service execution, resetting our cost structure, and deepening vertical integration. The result is a leaner operating model with a materially lower breakeven and industry-leading gross margins,” the company said.