Ola Electric Shares Crash 82% From Peak After Weak Q3

Ola Electric Mobility’s stock hit a new all-time low. This drop continues a big decline that has lessened the excitement since its market debut.

Ola Electric shares touched ₹28.06 on 18 February, marking the first time it has traded below the ₹30 level. At current levels, the stock is down around 62% from its IPO price of ₹76 and about 82% below its record high of ₹157.40, which it had hit in August 2024.

In addition, the stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages.

The recent selling wave started after the company reported its December-quarter earnings. After that, many brokerages downgraded their ratings and lowered target prices.

What Did Q3 FY26 Results Reveal?

For the October–December quarter, Ola Electric reported revenue from operations of ₹470 crore. That compares with ₹1,045 crore in the same quarter last year, reflecting a sharp contraction in top-line performance.

The company reported a net loss of ₹487 crore for the quarter. While this was lower than the ₹564 crore loss in the same period last year, it shows that the business continues to face pressure as sales decline.

Vehicle deliveries during the quarter fell to 32,680 units, down from 84,029 units a year earlier. The drop in volumes has raised concerns about demand momentum and competitive positioning in the electric two-wheeler segment.

At ₹323 crore, the adjusted operational EBITDA loss also improved over the previous year. However, the broader picture remains one of declining scale at a time when competition in the segment is intensifying.

The electric two-wheeler industry is still growing. However, Ola’s market share has dropped. This shows that competitors are gaining ground during the slowdown.

Why Are Brokerages Turning Bearish?

Following the results, Emkay Global downgraded the stock to “Sell” from “Buy” and slashed its target price to ₹20 from ₹50 earlier. The revised target implies a downside of more than 35% from the recent closing level of ₹30.89.

The brokerage flagged continued volume weakness and market share erosion despite broader industry growth. It noted that while the electric mobility theme remains intact, the company’s near-term performance has lagged peers.

Beyond the quarterly numbers, the stock has also been sliding steadily in recent sessions, reflecting continued selling pressure.

Also Read - Auto Industry Growth Seen at 3–6% in FY27

What Could Determine The Stock’s Next Move?

The sharp correction shows slowing revenue, fewer deliveries, and negative comments from brokers. The stock is now well below its IPO price and past highs. Now, the focus is on whether the company can stabilise volumes and hold its ground in a fast-changing market.

Future performance may depend on three key factors:

• Competition with existing and new EV companies.

• Increased sales.

• Improved operational efficiency.

The growth of the electric two-wheeler market shows that demand will stay strong in the long run.

For now, the price action indicates that investors are demanding clearer signs of a turnaround before re-entering in size. Until there is sustained improvement in quarterly numbers, volatility could persist.

The stock’s journey from ₹157.40 at its peak to sub-₹30 levels illustrates how quickly sentiment can reverse when execution falters in a high-growth but highly competitive sector.

Sources:

Moneycontrol

Fortune India