Ola Electric shares fall 5.4% after Q1, brokerages split between neutral and sell calls
Brokerages cautious, citing concerns around volumes, margins, competition and cash flow
On Monday, Ola Electric Mobility shares experienced a decline of over 4 per cent, closing 4.31 per cent lower at ₹39.30. The company reported a narrower loss of ₹336 crore for Q1FY27, down 21 per cent year-over-year. However, revenue fell by 45 per cent to ₹455 crore, and EBITDA remained negative at ₹1.65 billion. Brokerages were cautious, citing challenges around volumes, margins, competition, and cash flow.
Goldman Sachs rated the stock as neutral and raised its target price to ₹40, citing a volume rebound to around 40,000 units but warning of cash burn and no material cell revenue expected in Q2. Kotak maintained a sell rating with a target price of ₹20, pointing to the critical need to scale up volumes and the ongoing risk of cash outflows.
Citi also retained a sell rating, highlighting weak volumes, lower gross margins, and slower-than-expected recovery as key concerns. Emkay Global kept its sell rating and target price of ₹30, noting a modest 93 per cent quarter-over-quarter rise in volumes but a 43 per cent year-over-year decline.
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