Ola Electric slips 7% as Emkay cuts target after narrower Q3 loss
Ola Electric slips 7% as Emkay cuts target after narrower Q3 loss
Ola Electric shares fall 7% after narrowing Q3 loss; Emkay Global trims target to Rs 20 amid revenue drop and weak volumes.
Ola Electric Mobility Ltd shares slipped 7% in early trading after the company narrowed its Q3 loss, though revenue declined sharply and sentiment remained cautious. The stock traded at Rs 28.73, with the market cap easing to about Rs 12,787 crore as roughly 49.66 lakh shares changed hands, translating to a turnover of around Rs 14.51 crore.
Despite a narrower EBITDA loss, the quarter showcased significant top-line pressure, with revenue plunging 55% year-on-year to Rs 470 crore from Rs 1,045 crore a year earlier, and down 32% sequentially. The company reported an EBITDA loss of Rs 271 crore, indicating continued profitability challenges even as the figure improved on a yearly basis. The results underline Ola Electric's ongoing battle to scale in a competitive EV market, even as the broader electric two-wheeler theme remains attractive to some investors amid supportive policy measures.
Emkay Global moved to a sell rating and cut its price target to Rs 20 from Rs 50, citing a weak Q3 performance and a drop in volumes. Ola’s volumes in Q3FY26 fell to about 32,000 units from 125,000 in Q1FY26, contributing to the softer revenue base and persistent losses. The company’s market share is around 6%, highlighting the intense competition within the sector as the market absorbs pricing pressure and model refreshes.
Looking ahead, investors will assess whether Ola Electric can translate its underlying two-wheeler demand into a sustainable path to profitability. While some analysts point to potential positives from policy tailwinds and volume growth, the near-term outlook remains cautious as the company works to optimize costs and scale production in a challenging quarter.
