Ola Electric's September-quarter results and its planned transition to a dealer-led distribution model remain key concerns for brokerages. Goldman Sachs and Kotak maintained their Sell ratings on the stock and cut their target prices, citing margin pressures, weak volume recovery, and persistent losses. Both brokerages also flagged risks associated with the company's execution and its ability to achieve cash breakeven.
Ola Electric Q2 Results: Key Highlights
- Net loss at Rs 362 crore versus a loss of Rs 418 crore year-on-year.
- Revenue down 39% to Rs 421 crore versus Rs 690 crore year-on-year.
- Ebitda loss at Rs 218 crore versus a loss of Rs 203 crore year-on-year.
Also Read: Ola Electric Q2 Results: Net Loss Narrows To Rs 362 Crore, But 39% Revenue Plunge Spells Concern
What Brokerages Say
Goldman Sachs
- Maintain Sell; cut target price to Rs 22 from Rs 23.
- Dealer-led transition targets 700 outlets by the fourth quarter of fiscal 2027, replacing company-owned stores.
- Expect gross margin pressure of more than 650 basis points, partly offset by Rs 500 million in fixed-cost savings.
- Cut fiscal 2027–29 revenue estimates by up to 6%; weak volumes and persistent losses remain key risks.
Kotak Institutional Equities
- Maintain Sell; cut target price to Rs 18 from Rs 20.
- Dealer-led transition targets more than 700 stores by March 2027, but weak brand equity and volume recovery remain concerns.
- Need sustained monthly volumes of 25,000 vehicles to achieve cash breakeven; Rs 3.5 billion in quarterly free cash outflows threaten liquidity.
- Cut fiscal 2027–29 revenue estimates on lower average selling price assumptions; the unproven battery storage business and persistent losses add execution risks.
Also Read: Ola Electric Says Every Scooter Sells. So Why Is It Shutting Its Own Stores?
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.