Shares of Ola Electric Mobility saw heavy selling pressure on Monday, with the stock hitting an all-time low after the company reported negative earnings for the third quarter ended December 31, 2025. Investor sentiment weakened further after domestic brokerage Emkay Global Financial Services downgraded the Bhavish Aggarwal-led electric vehicle maker and slashed its target price by 60%.

Weighed down by these developments, Ola Electric shares declined as much as 7% to touch a fresh record low of ₹28.73 on the BSE Limited. The stock eventually settled 6.7% lower at ₹28.83, taking its market capitalisation to ₹12,716.42 crore. Nearly 1.24 crore shares changed hands during the session. The stock has declined for three consecutive sessions, delivering a negative return of 8.24% over this period.

The share price of Ola Electric is down nearly 60% from its 52-week high of ₹71.24 touched on September 4, 2025. The counter has fallen over 23% on a year-to-date (YTD) basis, while its market value has corrected by more than 30% over the past six months. Over the last one year, the midcap auto stock has declined 53%.

On the technical front, Ola Electric shares are trading below their 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating sustained bearish momentum.

Delivers weak numbers in Q3

Ola Electric on Friday reported a net loss of ₹487 crore for Q3 FY26, which narrowed from ₹564 crore reported during the same quarter last year (Q3 FY25). While the bottom line showed improvement year-on-year, it widened slightly from the ₹418 crore loss reported in the preceding quarter (Q2 FY26).

The consolidated revenue from operations fell to ₹470 crore, a 55% decline from ₹1,045 crore in Q3 FY25.

According to Aggarwal, the December quarter was a deliberate "structural reset" for the company. Faced with moderating EV penetration and critical gaps in service execution, the founder said that Ola Electric chose to prioritise fixing its fundamentals over chasing short-term sales volume.

Despite the revenue slump, the company delivered a record 34.3% consolidated gross margin, the highest in the Indian electric two-wheeler industry, Aggarwal said. He attributed this expansion of 15.7 percentage points year-on-year to the company’s deep vertical integration and the cost efficiencies of its Gen3 platform.

Addressing the company’s widely criticised service quality, Aggarwal said that the issues were related to scale rather than product engineering. Through the "Hyperservice" initiative, Ola has reduced service backlogs by nearly 50% and now completes 80% of service requests on the same day.

Emkay downgrades Ola to ‘Sell’

The domestic brokerage house has downgraded Ola Electric Mobility to ‘Sell’ from ‘Buy’ and slashed its target price by 60% to ₹20 from ₹50, citing weak operating performance, continued market share losses, and rising financial stress.

According to Emkay, Ola reported a weak third quarter, with revenue declining 55% year-on-year (YoY) amid a sharp 61% YoY drop in volumes. The company’s electric two-wheeler (E2W) volumes fell to 32,000 units in Q3, compared with 125,000 units in Q1, reflecting a steep sequential slowdown.

While Emkay maintained that the broader E2W industry remains structurally strong — with industry volumes growing 33% and 24% YoY in January and February 2026, respectively — it noted that Ola has consistently ceded ground. The company is currently ranked fifth in the market with a 6% share.

The brokerage highlighted that Ola is undertaking corrective measures, including store rationalisation to around 700 outlets, cost optimisation efforts, and operating expenditure guidance of ₹2.5–3 billion per quarter compared with ₹430 crore in Q3. The company is also attempting to improve brand perception amid product and service-related challenges, despite having sold over one million E2Ws since launch.

However, Emkay cautioned that the turnaround could be prolonged and challenging, particularly with heightened competitive intensity from incumbents and scaling efforts at rivals such as Ather Energy.

The brokerage further flagged balance sheet concerns, noting that Ola has moved into a net debt position of ₹670 crore as of 9MFY26, compared with net cash of ₹160 crore in H1FY26. A successful strategic stake sale in its battery business could provide meaningful cash infusion and offer upside risk, it added.

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