Shares of Ola Electric plummeted nearly 10% on Friday following the revelation of a consolidated net loss of Rs 870 crore for the fourth quarter ending March 31, 2025.
The company’s stock dropped 9.71% to Rs 48.07 on the BSE and 9.72% to Rs 48.06 on the NSE, emphasizing investor skittishness.
Despite reporting a significant financial setback, Ola Electric has set its sights on achieving profitability by FY26, aiming to boost revenue and improve operational leverage to transition towards sustainable profitability.
Brokerages React Sharply to Ola’s Q4 Miss
Ola Electric’s disappointing Q4 results have sent ripples through the analyst community, triggering a wave of target price cuts and cautious tones.
Kotak Institutional Equities has downgraded Ola to “sell” (from “reduce”) and slashed its target price to ₹30, a massive 60% below the IPO issue price of ₹76 and nearly 80% off its post-listing high of ₹157. Kotak flagged execution delays, weakening brand strength, and slower-than-expected motorcycle launches as major risks. The brokerage also sharply cut its FY26–27 volume estimates by 32–34%, reflecting a sluggish ramp-up in both Ola’s lineup and the broader EV two-wheeler space. Still, it noted that cost-cutting measures, the Gen-3 platform, and possible warranty reversals could help profitability from FY26 onward.
On the flip side, Goldman Sachs remains bullish, maintaining a “buy” rating with a target of ₹70—though that’s still below IPO levels. Goldman is watching closely for Ola’s progress in battery cell manufacturing, where current yields are around 63%. Ola has signaled plans to begin integrating its own cells once yields cross 80%, a move that could strengthen margins.
Market sentiment overall remains mixed. According to Trendlyne, the average target price is ₹67, implying an upside of roughly 25% from current levels. Among eight analysts tracking the stock, four recommend “buy,” two say “hold,” and two suggest “sell.”
While Ola’s long-term growth bets on electric motorcycles and rural expansion could pay off, the near-term path remains uncertain. Investors may need to brace for continued volatility as the company navigates execution hurdles and an increasingly competitive EV market.
(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of NEWSD.in. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)
