Ola Electric Share Price: Ola Electric’s stock has fallen by about 52 percent in the last one year…
highlights
- Ola Electric shares fell by about 7% after the quarterly results.
- The company managed to narrow its losses and register record gross margins in Q3 FY26, but a sharp decline in revenue put pressure on the market.
- Investors will keep an eye on the company’s revenue growth and volume recovery in the coming quarters.
Despite narrowing losses and improving margins, Ola shares are under pressure due to decline in revenue and market caution. Investors will keep an eye on the company’s revenue growth and volume recovery in the coming quarters. On Monday, January 16, around 11.50 am, shares of Ola Electric Mobility were trading at Rs 29.06, down 5.95%.
The stock has fallen about 52 percent in the last one year. Technically, the stock’s RSI stands at 35.8. Typically an RSI below 30 indicates an oversold condition, while above 70 is considered overbought.
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The electric two-wheeler maker reported a net loss of Rs 487 crore in Q3FY26, compared to Rs 564 crore in the same quarter last year. However, revenue from operations fell 55% year-on-year to Rs 470 crore, reflecting slow EV penetration and weak volumes.
The company’s adjusted operating EBITDA loss narrowed to Rs 323 crore from Rs 494 crore in the same quarter last year. Despite this, the weakness in earnings impacted the market.
In the shareholders’ letter, the company described Q3 as a ‘structural reset’. According to the management, the company has realigned its retail network, cost structure and operating model to focus on strong infrastructure rather than short-term volumes. This has lowered the volume breakeven point and improved operating leverage.
record gross margin
The company recorded a record gross margin of 34.3% during the quarter, up 15.7 percentage points year-on-year and 3.4 percentage points quarter-on-quarter. This improvement was due to vertical integration, the Gen3 platform, and tight cost controls.
The company has reiterated its target of achieving 35–40% gross margins by FY27.
investment of 5,300 crores
Ola Electric said it has invested around Rs 5,300 crore in manufacturing infrastructure, battery innovation and R&D, which is one of the largest investments in the Indian EV sector.
The company’s current production capacity is 1 million vehicles and 6 GWh cell capacity. The final phase of the Gigafactory is expected to be completed by March 2026. Going forward, the company aims to reach the revenue level of Rs 15,000–20,000 crore in the next few years.
Sell ​​shares?
Brokerage firm Emkay has advised to sell the shares of Ola Electric. The brokerage downgraded Ola Electric’s shares from BUY to SELL and reduced the target from Rs 50 to Rs 20. The brokerage feared a further weak quarter with rising EBITDA losses and said that it is extremely difficult for the company to survive the current situation.
The brokerage said Ola has seen a consistent volume decline in Q3 and suffered market-share losses (ranking 5th with 6% share). The brokerage has advised investing in E2W theme with Ather and TVS instead of Ola.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice in any way. ET NOW Swadesh recommends its readers and viewers to consult their financial advisors before taking any money-related decisions.
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