Ola Electric shares sink to all-time low in trade; down 55% in one year

Ola Electric Mobility shares slipped 2.4 per cent on BSE, logging an all-time low at ₹26.84 per share. At 9:42 PM, Ola Electric’s share price was trading 2.11 per cent lower at ₹26.94 per share. In comparison, the BSE Sensex was down 0.04 per cent at 82,464.69.

 

In a year, Ola Electric shares have slipped 55.4 per cent as compared to Sensex’s rise of 8.9 per cent. Similarly, in a month, Ola Electric shares fell around 16 per cent. 

 

The stock faced selling pressure following reports that the company is planning a significant scale-down of its physical retail footprint in response to cooling demand and a decline in market share. The firm reportedly aims to consolidate its store network to approximately 550 outlets by the end of March.

 

This retrenchment follows an aggressive expansion phase where the Bhavish Aggarwal-led company had grown its offline presence to nearly 4,000 locations across the country. In its latest quarterly update, the company disclosed that it had already trimmed its operational storefronts to about 700 as part of a strategic business reset.

 

According to the report, which cited a letter to shareholders, the December quarter was a period of significant internal restructuring. As the pace of electric vehicle adoption moderated and the need for better service operations became clear, the firm opted to realign its retail footprint, cost base, and operating model. The shift signals a move away from chasing short-term sales volumes in favor of long-term operational stability.

 

The report further noted that several outlets across various regions have already ceased operations, with staff at certain locations being asked to leave as part of the downsizing.

 

Ola Electric Q3 results 

For the quarter ended December 31, 2025, it reported a net loss of ₹487 crore, compared with ₹564 crore in the same period last year. Revenue from operations dropped sharply by 55 per cent year-on-year to ₹470 crore.

 

Analysts believe the company’s turnaround post December quarter (Q3FY26) is likely to be prolonged and challenging. They also raised concerns around the company’s revenue growth in the third quarter of 2025–26 (FY26).

 

Emkay Global Financial Services downgraded Ola Electric to ‘Sell’ post Q3, slashing its target price by 60 per cent to ₹20 from ₹50 post Q3, citing concerns over the company’s survival amid sharp operational deterioration. While the broader e2W theme remains intact and the industry continues to see healthy growth, Ola Electric has continued to lose ground, Emkay said.  

 

According to reports, Citi also downgraded Ola Electric to ‘Sell’ from ‘Buy’, trimming the target price to ₹27 from ₹55. The brokerage said that Ola Electric continued to face persistent headwinds to volume growth as EV penetration in the Indian two-wheeler sector remains more sluggish than expected, further slowed by recent goods and services tax (GST) cuts. The company has lost market share, hampered by service issues, intense competition, and adverse customer perception, leading to Q3 results that came in below estimates due to negative operating leverage.   Disclaimer: View and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers discretion is advised.