Ola Electric shares dip 5% after Goldman Sachs downgrades stock to Sell. Here’s why

Shares of pure-play EV major Ola Electric Mobility dropped as much as 5% to Rs 30.48 on the BSE on Friday after global investment bank Goldman Sachs downgraded the stock to Sell from Neutral, cutting the target price to Rs 23 from Rs 39.28, implying downside of 28% from current levels.

Goldman Sachs has cut its revenue estimates for FY27-FY29 by up to 10%, citing expectations of prolonged operating losses at current market share levels. Key factors to monitor include the company's ability to achieve positive consolidated EBITDA and accelerate customer wins for its in-house cells.

Earlier this month, the electric two-wheeler maker finalised the terms of its Rs 1,000-crore rights issue, setting the price at Rs 27 per share, a 26% discount to its market value. The company will issue 37.03 crore partly paid-up shares under the offer.


The rights issue, which opened on Thursday, will close on October 30. Shareholders can sell or transfer their rights entitlement in the market until October 26.

The latest fundraising comes just three months after Ola Electric raised Rs 780 crore through a qualified institutional placement (QIP) in June. The company had initially planned to raise Rs 500 crore through that issue. In June, its rival Ather Energy approved plans to raise up to Rs 2,500 crore through a QIP and other equity-linked instruments.

In September, Ola Electric sold 12,894 electric two-wheelers, giving it a 6.5% market share, according to Vahan vehicle registration data, which is a proxy for sales. Its market share was 7.6% in August.

Ola Electric Q1 results

The electric scooter maker narrowed its net loss to Rs 336 crore in Q1 FY27 from Rs 428 crore a year earlier, even as revenue from operations fell 45% year-on-year.

Ola Electric reported a contraction in net losses, while revenue from operations fell to Rs 455 crore in the April-June quarter of FY27, down from Rs 828 crore in the corresponding quarter of the previous year. However, revenue surged 72% from the Rs 265 crore reported in the previous quarter (Q4 FY26).

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The Bhavish Aggarwal-led company said Q1 was the first full quarter after its FY26 reset, during which it streamlined operations, tightened execution and lowered its operating cost base. Its orders rose to 44,071 units from 22,522 units in Q4 FY26, while deliveries increased to 39,192 units from 20,256 units.

Disclaimer: This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.