SYNOPSIS: Shares of one of India’s leading electric vehicle manufacturers are in focus after Goldman Sachs downgraded the stock and halved its target price, cut FY26-FY28 revenue estimates, and projected mid-single-digit long-term market share.
Ola Electric Mobility Limited has stayed in the spotlight ever since its market debut. Over the past year, the company has struggled with declining market share, heavy cash burn, and weak stock market performance. This time, the shares are once again in focus after global brokerage Goldman Sachs downgraded the stock and reduced its target price sharply by 50 percent.
With a market cap of Rs. 11,137 crores, shares of Ola Electric Mobility Limited are currently trading in the red at Rs. 25.25, down by over 1 percent, as against its previous closing of Rs. 25.55 on BSE. So far in 2026, the stock has delivered negative returns of around 33 percent, as well as over 20 percent in the last one month.
Brokerage Target & Outlook
The global brokerage firm Goldman Sachs has downgraded the stock to a ‘neutral’ rating and cut its target price by 50 percent to Rs. 26 from Rs. 52 earlier. The revised target implies a limited upside of roughly 2 percent from the previous closing level, signalling a more cautious outlook on the company’s near- to medium-term prospects.
The brokerage has also reduced its revenue estimates for FY26 through FY28. It now projects the company’s market share to stabilise at mid single digits by FY30 and beyond, compared to earlier expectations of low-teens market share. It further noted that, at the current pace of EBITDA losses and capital expenditure, Ola’s cash burn could necessitate additional fundraising within the next 12 to 18 months.
According to the brokerage, a turnaround would require several structural improvements, including establishing a reliable and scalable servicing network, building a stable and experienced senior leadership team across functions, and enhancing product reliability ahead of the next industry product launch cycle.
Brokerage sentiment around the company has turned increasingly cautious in recent weeks. Citigroup also downgraded the stock from ‘buy’ to ‘sell’ and sharply reduced its target price by 51 percent to Rs. 27 from Rs. 55 earlier.
Citi attributed the downgrade to slower-than-anticipated EV penetration, ongoing market share erosion, and rising balance sheet concerns due to sustained cash burn. The brokerage also trimmed its financial projections and reduced its target EV/Sales multiple to 3.5x, reflecting a more conservative valuation approach amid operational headwinds. Similarly, Emkay Global Financial Services downgraded the stock from ‘buy’ to ‘sell’ and lowered its target price to Rs. 20 from Rs. 50 previously.
Emkay noted that the company’s Q3 FY26 performance was weaker than expected, even though the broader electric 2W opportunity in India remains structurally positive. While the industry has shown signs of recovery in penetration after a temporary slowdown following GST rate adjustments, the company’s volumes declined to around 32,000 units in Q3 FY26, accompanied by a further loss in market share.
Financials, Promoter Pledge-Free & More:
Ola Electric Mobility Limited is an Indian electric vehicle (EV) manufacturer engaged in the development and production of EVs and core components, including battery packs, motors and vehicle frames through vertically integrated operations. It conducts in-house R&D and is building the Ola Gigafactory for cell production. Ola follows a direct-to-customer (D2C) distribution approach to sell its products.
For the quarter, the company posted a revenue from operations of Rs. 470 crores, reflecting a sequential decline of around 32 percent QoQ compared to Rs. 690 crores in Q2 FY26. Likewise, on a year-on-year basis, revenue fell by nearly 55 percent from Rs. 1,045 crores recorded in Q3 FY25.
Net loss for the quarter stood at Rs. 487 crores, reflecting a sequential increase of around 16 percent compared to Rs. 418 crores in Q2 FY26. However, on a year-on-year basis, losses narrowed by around 14 percent from Rs. 564 crore recorded in Q3 FY25.
On 18th December 2025, Ola announced that its promoter and CEO, Bhavish Aggarwal, had completed the sale of a small portion of his personal stake to fully repay a promoter-level loan of around Rs 260 crore.
Following this update, the company’s shares rose over 4 percent on 23rd December, as it announced that the proceeds from the stake sale were used for the repayment of debt, along with interest and related charges, while the remaining amount will be utilised to meet applicable tax liabilities in due course.
With the loan fully repaid, all promoter-level share pledges, aggregating to nearly 3.93 percent of the company’s total equity, have now been entirely released. After this transaction, the promoter group continues to hold a 34.6 percent stake in the company.
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