Ola Electric Shares Dip 3% On Profit Booking After Q1 Results: Buy, Sell or Hold?
Ola Electric Shares Dip: Ola Electric Mobility's shares slipped 3.08% to Rs 45.63 on Tuesday as investors booked profits after an 18% surge in the previous session. The pullback trimmed gains from the recent rally that followed the company's Q1FY26 results.
The EV maker reported a consolidated net loss of Rs 428 crore for the June quarter, widening 23% year-on-year. While the loss exceeded the previous year's figure, it was narrower than expectations set by Kotak Institutional Equities. The firm, however, maintained its 'SELL" rating with an unchanged fair value of Rs 30, citing industry headwinds and subdued volume growth.
Ola posted revenue of Rs 830 crore, down 50% YoY but up 36% sequentially, primarily due to backlog clearance from Q4FY25. Kotak noted that Ola's Q1 registrations stood at 60,000 units while deliveries were 68,000, reflecting the inventory spillover.
Despite reporting an EBITDA loss of Rs 240 crore—better than the Rs 290 crore loss projected by Kotak—the brokerage flagged concern over weak demand and rising competitive pressure in the electric two-wheeler market. The gross margin improved, aided by a shift to Gen-3 products and tighter cost controls.
Kotak cut its FY26–28 volume assumptions by 12–16%, forecasting just 3.1 lakh units for FY26 against Ola's guidance of 3.25–3.75 lakh units. It warned that the muted industry growth and intensifying competition could hinder Ola's market share and profitability goals.
Future performance, Kotak added, will depend on the success of cost optimisation efforts under 'Project Lakshya', and the operational ramp-up of its 5 GWh Gigafactory, which could serve as a key upside trigger. However, persistent challenges in the EV sector keep the brokerage cautious on the stock's long-term outlook.
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