Ola Electric Target Price Slashed By 40% To Rs 30 By Kotak Securities — Here's Why
Ola Electric’s market share fell to 18% in March 2025 from 38% a year earlier, prompting Kotak Securities to downgrade its outlook and warn of a potential cash crunch.
Kotak Securities on Friday has slashed its price target on Ola Electric Mobility Ltd. by 40% to Rs 30 from Rs 50, citing continued losses and rising competition. The revised target is the lowest among analysts tracked by Bloomberg and implies a 44% downside from the current market price.
The brokerage flagged two main concerns. First, it expects Ebitda losses to continue, driven by weakening brand equity and intensified competitive pressure. It noted that legacy players such as Bajaj Auto and TVS Motor have launched competitive electric scooters, impacting the market share of companies like Ola Electric.
Market Share Decline
Second, Kotak highlighted that Ola Electric’s future depends on scaling up volumes and executing its motorcycle plans. The firm, however, warned that the motorcycle foray faces execution and credibility challenges. Ola Electric confirmed during its recent earnings call that deliveries for its electric motorcycle started last week.
As a result, Kotak cut its volume assumptions for Ola Electric by 32 and 34% for the current and the next financial years respectively. It attributed the cut to a slower growth outlook for the electric two-wheeler segment and delays in the motorcycle rollout. Ola Electric’s market share dropped to 18% in March 2025 from 38% a year earlier.
The brokerage added that the company needs to scale up volumes to avoid a looming cash crunch.
Losses Widen
The report came after Ola Electric posted a loss of Rs 870 crore in the March quarter, more than double the year-ago period. Revenue declined 62% year-on-year. The widening Ebitda loss undercuts the company’s earlier guidance to turn operationally profitable in the first quarter of the current fiscal.
Ola Electric Q4 FY25 Highlights (Consolidated, YoY)
Revenue down 61.7% to Rs 611 crore
Ebitda loss at Rs 695 crore versus Rs 312 crore
Net loss at Rs 870 crore versus Rs 416 crore
Shares of Ola Electric were down 5% at 1 pm after falling as much as 10% intraday. The stock has dropped 33% since listing and is down 65% from its all-time high.
Among the analysts tracked by Bloomberg, four have a ‘buy’ rating, two have a ‘hold,’ and two have a ‘sell.’ The consensus 12-month price target is Rs 61.67, implying a potential upside of 21.4% from the last closing price.
