The shares of Ola Electric jumped around 5 percent on February 18 after the company clarified that the Bombay High Court at Goa has stayed an arrest warrant issued against its CEO Bhavish Aggarwal by the District Consumer Commission of South Goa.

The shares of the company rose to Rs 29.35 apiece, snapping a four-session losing streak. Today’s rise comes a day after the stock hit a lifetime low of Rs 27.36 apiece.

Here’s what Ola Electric said:

Responding to reports of the arrest warrant against Aggarwal, Ola Electric said that the court has observed that the District Consumer Commission of South Goa exceeded its jurisdiction under the Consumer Protection Act in issuing the warrant. “The Company requests that due note be taken of the aforesaid factual legal position,” it added.

The commission had issued the bailable warrant against the founder of Ola Electric after he allegedly failed to appear before it despite being served a notice. It is related to a complaint filed by a customer over issues with his Ola S1 Pro Second Gen scooter that allegedly persisted even after repairs. The customer sought a refund of Rs 1.47 lakh, as well as Rs 50,000 for harassment and mental agony.

Brokerages on Ola Electric:

The earlier sharp decline seen in the stock came after the company announced its earnings for the October-December quarter of FY26. Ola Electric on February 13 reported consolidated revenue from operations at Rs 470 crore for Q3 FY26. This marks a 55 percent year-on-year (YoY) fall from the Rs 1,045 crore revenue from operations reported in the same period of the previous financial year.

Net loss however narrowed to Rs 487 crore during the quarter under review, as against a net loss of Rs 564 crore in the year-ago period.

Citi downgraded the shares of the company to ‘Sell’ from ‘Buy’, and slashed its target price by 51 percent to Rs 27 apiece from Rs 55 apiece earlier. It cited slower-than-expected electric vehicle penetration, continued market-share losses, and mounting balance-sheet concerns amid persistent cash burn as reasons for the downgrade. Citi cut its estimates and target EV/sales multiple to 3.5x.

Emkay Global downgraded the shares of Ola Electric to ‘Sell’ from ‘Buy’, and cut its target price to Rs 20 apiece from Rs 50 apiece. According to the brokerage note cited by CNBC-TV18, Emkay’s analysts highlighted that Ola logged a weak third quarter, although its underlying electric two-wheeler theme remains strong.

Kotak Securities also kept a ‘Sell’ call on the stock, with a target price of Rs 20 per share. The domestic brokerage said that Ola Electric’s results were below expectations, and volume growth saw no pick up. It added that the company is already showing visible strain, and may see a full blown crisis ahead. It expects Ola to see big net losses and net worth erosion in FY26-FY28.