21 May , 2026 By : Debdeep Gupta
Ola Electric shares declined more than 4 percent after the company reported a sharp decline in revenue for the March quarter, while brokerages flagged pricing pressure and execution-related concerns.
The electric two-wheeler maker reported a consolidated net loss of Rs 500 crore for the quarter, compared with a loss of Rs 870 crore in the corresponding period last year.
Revenue from operations declined 56.6 percent year-on-year to Rs 265 crore in the January-March quarter from Rs 611 crore a year ago.
Brokerage HSBC maintained a "Reduce" rating on the stock and cut the target price to Rs 33. The brokerage said Ola Electric is focusing on sustainable volume growth and margin expansion following a year-long efficiency improvement programme.
HSBC said the company’s cautious approach towards scaling battery cell production appeared prudent, but delays had reduced a key competitive advantage for the company. It also cut estimates citing weak volume growth.
Shares of Ola Electric Mobility were trading lower at Rs 35.46 per share on the NSE, down 4.06 percent.
Citi retained a "Sell" rating on the stock with a target price of Rs 26. The brokerage said the March quarter performance was below estimates due to lower average selling prices, partly on account of accounting changes related to extended warranty.
Citi said gross margins remained strong, even after adjusting for production-linked incentive benefits. It added that the management remained positive on electric vehicle demand, especially amid rising fuel prices.
The brokerage said Ola Electric’s market share is expected to improve as the company focuses on strengthening its service network and offerings.
For the first quarter of FY27, the company guided for 40,000-45,000 orders and revenue of Rs 500-550 crore.
According to Citi, the management highlighted efforts towards cost reduction and cash flow generation, with the auto business reporting positive free cash flow in the fourth quarter. However, the brokerage said sustained volume growth would be critical for further improvement in profitability, noting that around 90 percent of the company’s operating expenses are fixed in nature.
The company said service-related issues were the key demand constraint during FY26, but added that the situation has now “materially stabilised”.
Average service turnaround time declined 88 percent between October 2025 and March 2026, while the service backlog was reduced significantly, the company said.
Ola Electric also said April registrations rose 20 percent month-on-month, even as the broader electric two-wheeler industry recorded a 22 percent decline during the period.
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