Ola Electric shares fall 6% even as Q1 loss narrows. Why brokerages see up to 51% downside

Ola Electric on Friday reported the contraction of net losses, while revenue from operations fell to Rs 455 crore in the April-June quarter of the ongoing financial year 2027, down from Rs 828 crore reported in the corresponding quarter of the previous year. However, revenue surged 72% from the Rs 265 crore reported in the previous quarter (Q4 FY26).

The Bhavish Aggarwal-led company said Q1 was the first full quarter after its FY26 reset, during which it streamlined operations, tightened execution and lowered its operating cost base. Its orders rose to 44,071 units from 22,522 units in Q4 FY26, while deliveries increased to 39,192 units from 20,256 units.

Ola Electric's registrations rose 97% quarter-on-quarter to 43,921 units, outpacing the broader electric two-wheeler market, which grew 17%. Ola’s market share improved to 8.4% in Q1 FY27 from 5.1% in Q4 FY26.

Also read |Ola Electric Q1 Results: Loss narrows to Rs 336 crore; revenue falls 45% YoY

Emkay on Ola Electric share price

Emkay said Ola Electric has logged a mixed Q1 FY27, with weak topline (down 45% YoY amid a 43% YoY drop in volume and 11% QoQ lower ASPs, mainly on an unfavorable mix) but improving margins. Reported gross margin declined by 816 bps QoQ amid elevated commodity costs, as it expects commodity pressure to keep margin range-bound for another 1-2 quarters. Kotak Institutional Equities on Ola Electric share price

Kotak Institutional Equities also maintained its ‘Sell’ call on the shares of Ola Electric, with a target price of Rs 20 apiece, implying 51% downside potential. The brokerage noted that the company’s volume scale remains the critical hurdle.If current volume trajectory does not improve, the company will be required to raise capital, Kotak said, adding that FCF outflow poses another challenge despite QIP.

Citi on Ola Electric share price

Citi also maintained its ‘Sell’ call on the shares of Ola Electric, with a target price of Rs 26 apiece, implying 37% downside potential. Weaker volumes and lower gross margin was offset by cost control and PLI penalty reversal, it said.Losses were lower than estimate, but volumes remain sluggish and ASPs weak, Citi said, adding that competition is escalating. Positive impact of shift to dealership-based model is uncertain at this stage, it further said.

Goldman Sachs on Ola Electric share price

Goldman Sachs has a ‘Neutral’ rating on the shares of Ola Electric with a target price of Rs 40 apiece, implying 3% downside potential. The company’s cash burn remains a concern, with FCF at negative Rs 3.5 billion and no material cell revenue expected in Q2, the international brokerage said.It raises FY27-29 EPS estimates on volume recovery, but execution and cash-flow risks keep the Neutral view.

Ola Electric share price

Ola Electric shares gained around 6% in a week but fell over 1.5% in a month, trading at around Rs 41 apiece on Friday. The EV-scooter maker’s shares recorded sharp gains earlier last week after the company signed a memorandum of understanding (MoU) with Axis Energy to deploy up to 20 GWh of battery energy storage systems (BESS) by 2032.Despite the recent gains, the shares of Bhavish Aggarwal’s company remain in the deep red for its IPO investors. After a flat market debut in August 2024, Ola shares rallied sharply to hit a lifetime high of Rs 157.40 apiece later that year. However, the momentum reversed dramatically, with the stock falling to a lifetime low in March 2026, nearly one-seventh of its peak value.

Overall, Ola Electric shares have gained 9% in 2026 so far, as strong sales data, PLI certification and other factors boosted investor confidence in the EV scooter-maker. The stock has nearly doubled after hitting a lifetime low of Rs 22.25 apiece in March this year. The company currently has a market capitalisation of more than Rs 18,990 crore.

Also read |Ola Electric shares jump 31% in 6 months. Should you buy, sell or hold?

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