May 21 was a day full of ups and downs for the investors of Ola Electric in the Indian stock market. There was positive news of reduction in the company’s losses in the quarterly results released a day earlier, but as soon as the market opened, the story completely changed. Despite getting a big relief in losses, there was heavy selling in the shares of Ola Electric Mobility. The company’s shares fell by about 6 percent to a low of Rs 34.83 on the Bombay Stock Exchange (BSE). This decline has left common investors confused as to why this selling is happening despite good results.
Loss decreased but revenue increased concern
If we understand the data for the January-March 2026 quarter in depth, the picture looks quite interesting. The company’s net consolidated loss has declined by 42.5 percent on an annual basis to Rs 500 crore, which was Rs 870 crore in the same quarter last year. The reduction in deficit is certainly a relief news.
But the other side of the coin is that the consolidated revenue from operations declined by a huge 91 percent on an annual basis to just Rs 56.6 crore, which was Rs 611 crore in the March 2025 quarter. However, it is a matter of relief that during this period the expenses of the company also reduced significantly to Rs 546 crore, which was earlier Rs 1306 crore. The consolidated gross margin of the company has been recorded at 38.5 percent in this quarter.
How was the pace on the delivery front?
If we look at the performance for the entire financial year 2025-26, the total net consolidated loss of Ola Electric has been Rs 1833 crore. Total revenue from operations during this period was recorded at Rs 2253 crore, while the consolidated gross margin for the full year was 30.6 percent.
Talking about vehicle sales, the company delivered 20,256 electric two-wheelers to customers in the January-March 2026 quarter. At the same time, the total delivery figure for the entire financial year 2026 was 1,73,794 units. Regarding the future, the company has expressed hope that in the upcoming April-June 2026 quarter, its consolidated revenue can be between Rs 500 to 550 crore, in which orders of 40,000 to 45,000 units are expected.
Big warning from brokerage firms
After the quarterly results, the reports of big brokerage houses have influenced the sentiments of investors the most. Leading brokerage firm Citi has increased the target price of Ola Electric shares from Rs 22 to Rs 26, but did not change its ‘Sell’ rating. Citi believes that the company’s margins are definitely improving, but the huge volume growth (sales pace) required to become profitable is currently lacking.
Similarly, MK Global Financial Services has also increased the target from Rs 20 to Rs 25. On the other hand, HSBC, while expressing its negative opinion, has reduced the target price to Rs 33 per share and has maintained the rating of ‘Reduce’. This alertness of experts became the main reason for the selling in the market.
What is the current status of the stock?
The market cap of Ola Electric, which was listed in August 2024 with a huge IPO of Rs 6145.56 crore, is currently above Rs 15,500 crore. In the last three months, this stock had shown an excellent recovery of about 33 percent from the low levels, due to which retail investors had high expectations. By the end of March 2026, promoters’ stake in the company was 34.59 percent. The 52-week adjusted high of this stock on BSE has been Rs 71.24 and adjusted low of Rs 21.21.
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