Explained: Weak Q3, falling deliveries, and brokerage downgrades — why Ola Electric shares are crashing

Ola Electric Share Price Today: Shares of Ola Electric Mobility plunged nearly 7 per cent on Monday, February 16, hitting an all-time low of Rs 28.81 after the electric two-wheeler manufacturer reported its financial results for the October–December quarter of FY26 and faced a fresh round of brokerage downgrades and target price cuts.

The sharp sell-off pushed the stock below the Rs 30 mark for the first time, intensifying concerns over the company’s slowing growth, weak demand environment and sustained losses. Investor sentiment was further dented as analysts flagged mounting operational strain and warned of potential stress on the company’s balance sheet in the coming years.

Stock erodes sharply from IPO and peak levels

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At current levels, Ola Electric’s shares are down more than 62 per cent from their IPO price of Rs 76 per share. The stock has fallen close to 82 per cent from its all-time high of Rs 157.40, which was touched by it in August 2024, right after its market debut.

The steep fall in Ola Electric share price is indicative of change in investor expectations from the electric mobility space, especially in the case of loss-making startups facing intense competition, regulatory scrutiny and slowing consumer demand.

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Ola Electric Q3FY26 result highlights

Electric vehicle (EV) maker reported a narrower year-on-year consolidated net loss for the December quarter (Q3FY26), even as revenues came under sharp pressure due to a steep decline in scooter sales.

The SoftBank-backed company posted a net loss of Rs 487 crore in Q3FY26, compared with a loss of Rs 564 crore in the same quarter last year. However, on a sequential basis, losses widened from Rs 410 crore reported in Q2FY26.

Revenue from operations fell sharply, declining 55 per cent year-on-year to Rs 470 crore from Rs 1,045 crore in Q3FY25. On a quarter-on-quarter basis, revenue dropped around 32 per cent from Rs 690 crore in the September quarter.

Deliveries plunge amid demand concerns

A major drag on performance was the sharp decline in vehicle deliveries. Ola Electric’s deliveries fell 61 per cent year-on-year to 32,680 units in Q3FY26, compared with 84,029 units in the corresponding quarter last year.

The steep fall in volumes raised fresh questions over the company’s market positioning, product acceptance and ability to withstand intensifying competition from established two-wheeler makers and new EV entrants.

Brokerages turn cautious, slash target prices

Post the earnings announcement, several brokerages turned more cautious on the stock. Kotak Securities reiterated its ‘Sell’ rating on Ola Electric and cut its target price to Rs 20 per share, implying a steep downside from current levels.

Kotak Securities said the company’s quarterly results were below expectations, with no meaningful pickup in volume growth. The brokerage warned that Ola Electric is already showing visible signs of operational strain and could face a full-blown crisis if volumes fail to recover.

The brokerage expects Ola Electric to continue reporting large net losses and erosion in net worth between FY26 and FY28, raising concerns over the sustainability of its business model and funding requirements.

Outlook remains challenging

Analysts remain divided on Ola Electric’s medium-term prospects. While improvements in EBITDA losses suggest progress on cost control, the sharp fall in revenue and deliveries has overshadowed these gains. The broader slowdown in EV adoption, pricing pressure and rising competition continue to weigh heavily on the stock.

With the company’s shares now trading at record lows, investors are closely watching whether management can revive demand, stabilise volumes and chart a credible path to profitability amid a challenging operating environment.