The EV maker reported a consolidated net loss of Rs 487 crore in Q3, down from Rs 564 crore in the same quarter last year. Its revenue from operations dropped 55 per cent year-on-year (Y-o-Y) to Rs 470 crore, from Rs 1,045 crore in Q3FY25. Sequentially, revenue fell around 32 per cent from Rs 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 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 with a reduced target price of Rs 20 (from Rs 25). While the loss at the operating level was higher than expected due to a rise in other expenses, the brokerage says that the company’s lack of strategy to arrest its sharply declining market share and lower-than-expected volume offtake remains a concern.
The brokerage has cut its FY27–28 volume assumptions to the tune of 33–34 per cent as the two-wheeler electric vehicle industry growth has moderated in the past few months, led by increased demand for scooters powered by internal combustion engine models in the wake of GST rate cuts.
Emkay Global Financial Services has downgraded Ola Electric Mobility to ‘sell’, slashing its target price by 60 per cent to Rs 20 from Rs 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, 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.
