Ola Electric Mobility shares declined more than 6% in early trading on Monday after the electric vehicle maker announced its June-quarter results. The stock fell 6.06% to ₹38.58 apiece on the BSE before recovering partially.
The company reported a consolidated net loss of ₹336 crore for Q1FY27, compared with a loss of ₹428 crore in the same quarter last year and ₹500 crore in the March quarter. However, revenue from operations dropped 45% year-on-year to ₹455 crore from ₹828 crore.
Improvement in registrations, market share
Despite the revenue decline, Ola Electric reported a strong sequential improvement in vehicle registrations. Registrations increased 97% quarter-on-quarter, significantly ahead of the overall electric two-wheeler market growth of 17%.
The company’s market share rose to 8.4% in Q1FY27 from 5.1% in the previous quarter. Auto revenue also increased 72% sequentially. Orders nearly doubled to around 44,000 units, while deliveries rose to approximately 39,200 units from 20,256 units in Q4FY26.
However, analysts remained cautious, citing weak sales volumes, lower average selling prices and pressure on margins.
Cost-control measures and the reversal of a provision linked to battery production-linked incentive (PLI) targets provided some support but failed to offset operational challenges.
Brokerages maintain cautious outlook
According to a report by NDTV Profit, Citi retained its Sell rating on Ola Electric with a target price of ₹26. The brokerage said weaker volumes and lower gross margins outweighed benefits from cost reductions and the PLI provision reversal. It also highlighted rising competition in the electric two-wheeler market.
Goldman Sachs maintained a Neutral rating while increasing its target price to ₹40 from ₹38.90. The brokerage said cash burn remains a concern and maintained a cautious view due to operational weakness and pressure on cash flows.
Kotak Institutional Equities also retained its Sell recommendation with a target price of ₹20. It said improving volume scale remains a key challenge and warned that continued cash outflows could require additional capital raising if sales momentum does not improve.
