Ola Electric reported a consolidated net loss of Rs 500 crore for Q4 FY26, a 42.5% improvement from the Rs 870 crore loss in the same quarter last year. Despite this, Emkay has flagged the company's earnings as weak, citing a significant revenue drop and a 61% year-on-year decrease in volume.
Ola Electric's sequential volume has shown some improvement, with March-April retail figures at 10,000-12,000 units per month compared to an average of 8,000 units from November 2025 to January 2026. The company's market share also rose to 8-9% in April-May 2026 from 5% in Q4 FY26. Emkay attributes this growth to enhanced production capacity and gains in price-sensitive northern markets.
However, Emkay remains cautious about Ola's long-term recovery, noting that the company is adopting measures to improve execution, cut costs, and enhance brand perception. The brokerage warns that new capacities from incumbents and Ather in H2 FY26 could intensify competition.
“Ola is adopting several measures to improve execution, cut costs/conserve cash, and improve brand perception (service-related issues have started resolving). We believe this could be a difficult, long-drawn-out process, especially due to greater focus by incumbents + scale-up at Ather.”
Emkay
Emkay has maintained its 'Sell' recommendation for Ola Electric shares, though it raised the target price to Rs 25 from Rs 20, indicating a potential downside of over 35% from the last closing price of Rs 36.96.
Ola Electric shares fell around 6% to Rs 34.83 apiece in morning trading. The stock has experienced significant volatility, having rallied over 90% from a 52-week low of Rs 22.05 in March to a high of Rs 42.
Background
Ola Electric has been navigating a challenging market environment with increased competition from established players like Ather and TVS Motor Company. The electric two-wheeler industry is experiencing rapid growth, but also faces pressure from new entrants and expanding capacities.
Looking ahead, Ola Electric's ability to sustain its market share and volume growth amid increasing competition will be crucial. Investors will be closely monitoring the company's strategic initiatives and market dynamics in the coming quarters.
