Ola Electric slides 7% as analysts flag prolonged turnaround after weak Q3

Ola Electric reported a consolidated net loss of ₹487 crore in Q3, down from ₹564 crore in the same quarter last year

Shares of Ola Electric Mobility Ltd. fell nearly 7 per cent to a new low on Monday after its revenue growth in the third quarter of the financial year 2025-26 (Q3FY26) fell, with analysts flagging that any turnaround could be prolonged for the company.

 

The electric vehicle (EV) maker's stock fell as much as 6.7 per cent during the day to ₹28.8 per share, the biggest intraday fall since December 16 last year. The stock pared losses to trade 6 per cent lower at ₹28.9 apiece, compared to a 0.09 per cent advance in Nifty 50 as of 9:40 AM. 

 

 

Shares of the company fell for the third straight session and currently trade at 2.1 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 20 per cent this year, compared to a 2.5 per cent decline in the benchmark Nifty 50. Ola Electric has a total market capitalisation of ₹12,747.30 crore. 

Ola Electric Q3 analysis

The 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. 

 

Emkay Global Financial Services has downgraded Ola Electric Mobility Ltd to 'Sell', slashing its target price by 60 per cent to ₹20 from ₹50, citing rising concerns over the company's survival amid sharp operational deterioration. The brokerage noted that Ola reported a weak Q3 performance, with revenue declining 55 per cent Y-o-Y due to a 61 per cent drop in volumes.

 

While the underlying electric two-wheeler (E2W) theme remains strong and the industry is witnessing healthy growth, aided by a revival in penetration after the recent Goods and Services Tax cuts, Ola has continued to lose ground, Emkay said. The company's volumes fell to 32,000 units in the quarter, alongside a sustained loss in market share, it said. 

 

Emkay believes that any turnaround could be a prolonged and challenging process, particularly as incumbents sharpen their focus and competitors like Ather Energy scale up operations. The brokerage added that a revival would require Ola to maintain a strong cash balance to withstand this phase. However, it highlighted that a potential upside risk could emerge from a strategic stake sale in the battery business, which may result in 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 materially lower breakeven and industry-leading gross margins,"  Ola Electric said. 

 

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