Emkay Warns Ola Electric Shares Could Plummet 35% Following Disappointing Q4 Results

Shares of Ola Electric experienced a notable decline of 6% on Thursday, driven by a disappointing earnings report for the fourth quarter of FY26. The company reported a significant year-on-year revenue drop of 57%, bringing revenue from operations down to Rs 265 crore from Rs 611 crore the previous year. Brokerage Emkay Global cited potential downside of up to 35%, highlighting the alarming financial performance characterized by a consolidated net loss of Rs 500 crore, which, although an improvement from Rs 870 crore in the same quarter last year, raises concerns about the company’s ongoing struggles in the electric vehicle (EV) market.

Emkay Global’s analysis points to a troubling trend, noting a 61% year-on-year decline in volume, although there has been a marginal sequential uptick in retail sales (10,000-12,000 units per month in March-April compared to an average of 8,000 units from November to January). While Ola has gained some market share, with figures rising to between 8% and 9% in April-May 2026 from 5% in Q4 FY26, the brokerage emphasizes that this growth is a result of advantageous production capacity and market conditions rather than sustained operational improvements. The industry remains highly competitive, with existing players and newcomers like Ather ramping up their production capabilities, posing additional challenges for Ola Electric’s recovery efforts.

In light of these dynamics, Emkay maintains a ‘Sell’ recommendation for Ola Electric, although it has adjusted its target price from Rs 20 to Rs 25, still indicative of over a 35% downside from the stock’s last close at Rs 36.96. The preference has shifted towards competitors like Ather Energy and TVS Motor Company within the electric two-wheeler sector, suggesting a cautious outlook for Ola Electric amidst an increasingly competitive landscape. The stock has seen volatility, having fallen 6% in both the month and year to date, with a market capitalization exceeding Rs 15,579 crore, underscoring the challenges it faces in achieving consistent growth and profitability in the evolving EV market.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova team.)