Shares of Ola Electric touched a record low of ₹27.36 on NSE on Tuesday, sliding over 11% in the past two sessions after weak third-quarter results that saw the company’s net loss exceed revenue. The latest rout also follows the company’s strategic pivot to the energy storage business over electric two-wheelers, spooking investors and triggering broker downgrades.
The stock closed at ₹27.98, down 3% from Monday, and is now trading over 64% below its IPO price of ₹76. Its market capitalisation has fallen to about ₹12,280 crore from a peak of nearly ₹69,000 crore during its public issue in August 2024.
Financial Freefall
Citi downgraded the stock to ‘Sell’ from ‘Buy’ and cut its target price by 51% to ₹27 from ₹55, citing slower-than-expected EV penetration, continued market-share losses and balance-sheet concerns amid persistent cash burn. The brokerage also cut its estimates and EV/sales multiple to 3.5x.
Ola Electric reported a consolidated net loss of ₹487 crore in Q3 on a revenue of ₹470 crore, which fell 55% year-on-year due to weak vehicle sales. Chairman and Managing Director Bhavish Aggarwal described Q3FY26 as a “structural reset”, with the company shifting focus to its newly launched battery energy storage business. “The focus is now on growing this revenue potential of ₹15,000–20,000 crore over the next few years,” he said.
Pivoting from Scooters to Energy Storage
Gross margin improved to 34.3% in Q3FY26 from 18.6% a year earlier as operating expenses fell 34% to ₹432 crore, though the cost cuts came alongside lower volumes and workforce reductions. Vehicle deliveries dropped 61% to 32,680 units during the quarter.
Emkay Global also downgraded the stock to ‘Sell’ from ‘Buy’ and cut its target price to ₹20 from ₹50, citing persistent volume decline and market-share erosion despite healthy industry growth. The brokerage noted the company is taking steps such as store rationalisation to 700 (from 4,000 stores), cost-cutting measures and efforts to improve brand perception amid product and service issues. However, it cautioned that Ola Electric’s turnaround could be prolonged. “We believe that this could be a difficult, long-drawn process, especially amid greater focus from incumbents and scale-up at Ather,” they said.
Emkay also said the company turned net debt of ₹670 crore as of 9MFY26 from net cash of ₹160 crore in H1FY26, adding that a potential upside could come from a strategic stake sale in the battery business leading to meaningful cash infusion.
The company’s auditors also highlighted negative operating cash flow of ₹866 crore during 9MFY26, driven by continued operating losses and weaker-than-expected sales growth, noting the need to consider mitigating measures to support operations and meet obligations.
Meanwhile, Kotak Securities maintained a ‘Sell’ rating with a target price of ₹20, saying results were below expectations and volume growth showed no pickup. The brokerage warned the company is showing visible strain and could face a deeper crisis ahead, with large net losses and net worth erosion likely over FY26–FY28.