- Ola Electric shares fell up to 6.24% after reporting Q2FY27 results with revenue down 39% YoY
- The company posted a consolidated net loss of Rs 362 crore, narrower than last year's Rs 418 crore
- EBITDA loss widened to Rs 218 crore from Rs 203 crore, showing pressure on operating performance
Ola Electric Mobility share price was under pressure on Friday, falling as much as 6.24% to hit an intraday low of Rs 33.50 apiece after the electric two-wheeler maker reported its Q2FY27 results.
At 9:28 am, Ola Electric shares were trading 3.22% lower at Rs 34.58 apiece. In comparison, the BSE Sensex was down 0.57% at 81,464.
The drop comes amid continued concerns over the company's slowing revenue, persistent losses and the challenges involved in its transition to a dealer-led distribution model.
Ola Electric Q2 Results: Revenue Falls 39%, Loss Narrows
Ola Electric reported a consolidated net loss of Rs 362 crore for the second quarter of financial year 2027, compared with a loss of Rs 418 crore in the corresponding quarter last year.
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However, revenue from operations, also known as top line, declined 39% year-on-year (YoY) to Rs 421 crore from Rs 690 crore.
The company's EBITDA loss widened to Rs 218 crore from Rs 203 crore in the year-ago period, indicating continued pressure on operating performance.
Ola Electric Q2FY27 Results Highlights:
- Net loss: Rs 362 crore versus Rs 418 crore
- Revenue: Rs 421 crore, down 39% YoY from Rs 690 crore
- EBITDA loss: Rs 218 crore versus Rs 203 crore
Goldman Sachs
Goldman Sachs maintained its 'Sell' rating on Ola Electric and lowered its target price to Rs 22 from Rs 23.
The brokerage flagged risks associated with the company's transition to a dealer-led distribution model, which aims to establish 700 outlets by the fourth quarter of FY27, replacing its company-owned stores.
Goldman Sachs expects gross margin pressure of more than 650 basis points, although this could be partly offset by fixed-cost savings of around Rs 500 million.
The brokerage also cut its FY27-29 revenue estimates by up to 6%, citing weak volumes and continued losses.
Kotak Institutional Equities
Kotak Institutional Equities also maintained its 'Sell' rating on Ola Electric but reduced its target price to Rs 18 from Rs 20.
The brokerage highlighted concerns over weak brand equity and the uncertainty surrounding a recovery in vehicle volumes, despite the planned expansion of the dealer network to more than 700 stores by March 2027.
Kotak estimates that Ola Electric needs to sustain monthly volumes of around 25,000 vehicles to achieve cash breakeven.
It also flagged quarterly free cash outflows of Rs 3.5 billion as a potential liquidity concern.
The brokerage lowered its FY27-29 revenue estimates, factoring in lower average selling price assumptions. It also highlighted execution risks associated with the company's battery storage business, which remains unproven.
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