Ola Electric Mobility Ltd's shares are under pressure after the company saw its net loss narrow to Rs 500 crore, for its financial results of the fourth quarter of fiscal 2025-26. The firm logged a net loss of Rs 870 crore in the year-ago period.
Shares of Ola Electric slumped over 5% in early trade.
According to Bloomberg data, eight analysts track the stock. Two have a 'hold' call, and six have a 'sell' call on the stock.
Ola Electric Q4FY26 Highlights (YoY)
- Net Loss At Rs. 500 crore Vs Loss Of Rs. 870 crore
- Revenue Down 56.6% At Rs. 265 crore Vs Rs. 611 crore
- Ebitda Loss At Rs. 281 crore Vs Loss Of Rs. 695 crore
The firm stated it saw its first operating cash flow positive quarter in the fourth quarter of fiscal 2026. Ola Electric's consolidated Cash Flow From Operations was Rs 91 crore, which was on the back of Production Linked Incentive (PLI) inflows, stronger gross margins, lower opex, and tighter working capital discipline, as per a press release from the company.
Management Commentary
According to the management during the company's earnings call, consumers were returning to Ola Electric Mobility Ltd.'s scooters despite months of viral complaints over delayed repairs and service issues.
"People are buying whatever they can find in the network from us," Chairman and Managing Director Bhavish Aggarwal said. He said inventory in the company's network had dropped to "three-to-four days" and that Ola now had an order backlog.
Ola Electric also plans to restart new product launches this year after slowing rollouts while it worked through service and operational issues. The company had paused fresh launches as it focused on stabilising customer service operations, reducing repair backlogs and tightening costs after a period of complaints around delays and spare-part availability.
ALSO READ: Ola Electric Claims Customers Kept Buying Despite Viral Service Complaints
Brokerage View
Citigroup raised its target price on Ola Electric Mobility to Rs 26 from Rs 22 but maintained its "Sell" rating, saying the company still lacks the volume growth needed to improve profitability despite gains in margins and operating metrics.
The brokerage said Ola Electric's fourth-quarter results fell short of estimates because of lower average selling prices and weaker-than-expected volumes, even as gross margins remained ahead of forecasts.
ALSO READ: Ola Electric Share Price: Citi Raises Target Price But Flags Weak Volumes, Fixed Costs
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