Ola Electric slips 5% in trade, sink to record low; down 19% in a month

Analysts believe Ola Electric's turnaround post December quarter (Q3FY26) is likely to be prolonged and challenging.

Ola Electric’s share price fell 5 per cent on BSE, registering a fresh low at ₹27.36 per share on growth concerns. The stock slipped for the fourth session, sinking over 12 per cent. The stock has slipped 19.4 per cent in one month as compared to the Sensex’s marginal rise of 0.03 per cent. Ola Electric’s market capitalisation stands at ₹12,315.04 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).

 

In the December quarter (Q3FY26), the electric vehicle (EV) maker reported a consolidated net loss of ₹487 crore in Q3, down from ₹564 crore in the same quarter last year. Its revenue from operations dropped 55 per cent year-on-year (Y-o-Y) to ₹470 crore, from ₹1,045 crore in Q3FY25. Sequentially, revenue fell around 32 per cent from ₹690 crore in Q2FY26.

 

The decline was due to the steep drop in the company's scooter sales to 32,680 units in Q3FY26 from 84,029 units during the same period last year. The company, however, said that it consolidated gross margin improved to 34.3 per cent, up 15.7 percentage points Y-o-Y.  

Brokerages’ view on Ola Electric

Emkay Global Financial Services has downgraded Ola Electric to ‘Sell’, 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. 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.

 

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.  

 

While there are impressive trends in gross margins, and better operating leverage could eventually boost Ebitda, management’s efforts to improve product and service quality are expected to take time to yield results. Additionally, large negative cash flows are raising investor concerns regarding the company’s balance sheet and rising net debt levels.

 

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