Ola Electric Shares Dip 6% Despite Narrowing Q1 Loss Amid Brokerages Forecasting Up to 51% Downside.
In the early trading session, shares of Ola Electric Mobility declined by 6% to a low of Rs 38.58 on the BSE, presenting a stark contrast to its previous week’s performance. The company reported a narrowing of net losses to Rs 336 crore for Q1 FY27, down from Rs 428 crore year-on-year. However, the topline revenue from operations plummeted by 45% year-over-year to Rs 455 crore, a significant dip from Rs 828 crore a year earlier, despite a considerable quarterly recovery of 72% from the previous quarter’s Rs 265 crore. Ola’s substantial losses and decreasing revenue further emphasize the pressing challenges the company faces in a competitive EV landscape.
Despite the revenue decline, Ola Electric’s operational metrics demonstrated improvement, with units ordered rising to 44,071—nearly double the number from Q4 FY26. Deliveries also surged to 39,192 units. These figures led to an increase in market share from 5.1% in Q4 FY26 to 8.4% in the current quarter, outperforming the broader electric two-wheeler market, which grew by only 17%. However, analysts from Emkay and Kotak Institutional Equities have maintained a ‘Sell’ rating on the stock, citing concerns regarding sustainability in volume growth, potential capital requirements, and escalating competition from established players such as TVS and Bajaj as they ramp up production capabilities.
Analyst sentiment surrounding Ola Electric remains cautious, with several brokerages offering target prices that indicate substantial downside potential—ranging from Rs 20 to Rs 30 per share. Notably, Goldman Sachs maintains a ‘Neutral’ rating, reflecting wariness over cash burn and the uncertain impact of transitioning to a dealership-based sales model. Despite recent memorandum of understanding (MoU) developments that could bolster its battery energy storage projects, the overall financial outlook remains precarious, compounded by the company’s recent IPO struggles and fluctuating market conditions.
The current trading environment suggests that while Ola Electric has made strides toward operational improvement, significant headwinds persist. The company’s ability to convert order growth into sustainable sales and improve margins will be crucial in navigating the intensifying competitive landscape. As the company continues to implement cost control measures and refine its operational strategies, investor sentiment will likely be influenced by future performance metrics and market conditions in the EV sector.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)