Pure-play electric two-wheeler maker Ola Electric Mobility fell more than 5% after reporting its fourth-quarter results. The main reason for this decline is that Ola logged a weak Q4, with revenue down 57% YoY and its volume dropped of 61% YoY.
Emkay Global on Ola Electric
Ola logged a weak Q4, with revenue down 57% YoY on a volume drop of 61% YoY. The underlying electric two-wheeler theme is strong.
“While Ola has seen some sequential volume improvement (March-April retails at 10,000-12,000/month vs 8,000/month on average from November 2025 to January 2026), we attribute the volume growth to the currently better-placed production capacity, share gains in the more price-sensitive northern markets, and electric two-wheeler incumbents/Ather Energy operating at peak utilisation amid strong E-two-wheeler demand,” said Emkay Global.
Ola is adopting several measures to improve execution, cut costs and conserve cash (guides to Rs 350 crore per quarter opex; Rs 380 crore in Q4FY26), and improve brand perception (service-related issues have started resolving).
Emkay Global has raised the target price for Ola Electric by 25% to Rs 25 from Rs 20, still implying a downside of 32.4% from the current market price. However, the brokerage has maintained its ‘Sell’ rating.
The brokerage believes this could be a difficult, long-drawn-out process, especially due to greater focus by incumbents, plus scale-up at Ather. Additionally, new capacities coming onstream for incumbents and the rival Ather in the second half of FY26 would reintroduce competition in the industry structure.
Given the current dynamics, Ola’s recovery in volume and market share remains monitorable.
“We increase FY27 volume by 10%, given the strong momentum in the underlying E-two-wheeler industry. We prefer to play the E-two-wheeler theme with Ather Energy and TVS Motor Company (refer to Yet another mega shift in motion; Ather the frontrunner),” said the brokerage.
OLA Electric Q4FY26
The company reported a consolidated net loss of Rs 500 crore for the fourth quarter of FY26, narrowing by 42.5% year-over-year from Rs 870 crore reported in the same quarter a year ago. Its revenue from operations stood at Rs 265 crore, down 57% YoY from Rs 611 crore it posted in the corresponding quarter of the previous financial year.
The company reported an EBITDA loss of Rs 281 crore for the quarter under review, as against Rs 630 crore in the same period a year ago.
Electric two-wheeler maker’s consolidated gross margin came in at 38.5% for the March quarter of FY26 compared with 34.3% in Q3FY26 and 13.7% in Q4FY25.
The auto business generated cash flow from operations of Rs 213 crore and free cash flow of Rs 173 crore in Q4FY26. Meanwhile, the Cell business continued to remain in investment mode as the company ramped up its Gigafactory operations and prepared for the next phase of cell and energy storage product launches.
The company said Q4FY26 marked its first quarter of positive operating cash flow despite being a relatively low-volume quarter.
Ola Electric outlook
Based on current trends, the company expects Q1FY27 orders to be in the range of 40,000-45,000 units, nearly double the levels seen in Q4FY26. But, Ola cautioned that gross margins could moderate in Q1 and Q2FY27 due to commodity inflation and pricing measures targeted at accelerating growth in the face of persistent geopolitical uncertainties.
OLA Electric share price performance
The share price of OLA Electric has fallen by over a per cent in the last five trading sessions. The stock has declined 5.6% in the past one month and 15.5% in the last six months. OLA Electric’s stock has dropped 31% in the past one year.