Ola Electric Q4 FY26: Revenue slumps 57%, targets reset

Market move: Ola Electric drops after results

Shares of Ola Electric Mobility fell sharply on Thursday, with the stock down around 6% in morning trade at ₹34.83. The decline came after the electric two-wheeler maker reported a steep fall in quarterly revenue and brokerages reiterated cautious calls on the stock. Emkay Global, Citi and HSBC all kept negative ratings, even as some of them tweaked target prices. The common thread across notes was that revised targets still indicate meaningful downside from recent market prices.

The stock’s recent trading has been volatile. After hitting a 52-week low of about ₹22 in March, Ola Electric rallied more than 90% within a month to around ₹42. But the latest results and updated brokerage views brought the focus back to quarterly performance and valuation expectations.

Q4 FY26 numbers: revenue fall and net loss

In the fourth quarter of FY26, Ola Electric reported a 57% year-on-year (YoY) drop in revenue from operations to ₹265 crore, compared with ₹611 crore in the year-ago period. Separately, an earnings alert in the provided data also flagged a Q4 net loss of ₹500 crore. The results were a key trigger for brokerage recalibrations and for the stock’s move on the day.

Alongside the reported Q4 numbers, the company has indicated operational expectations for the near term. The same alert noted Ola Electric expects order volumes to double in Q1 FY27, a data point that markets tracked amid the broader debate on demand and execution.

Emkay: Sell retained, target raised to ₹25

Emkay Global Financial Services retained its ‘Sell’ recommendation on Ola Electric but raised its target price to ₹25 per share from ₹20. Emkay linked the upward revision mainly to stronger industry growth assumptions rather than any company-specific optimism. Despite the higher target, the brokerage still saw substantial downside.

Based on a previously cited closing price of ₹36.96, Emkay’s ₹25 target implied more than 35% downside. In another reference within the same set of details, Emkay’s target was described as suggesting about 32% potential downside, reflecting the use of different reference prices in market commentary.

Citi: Sell maintained, target revised to ₹26

Citi also maintained a ‘Sell’ rating on Ola Electric and revised its target price upward to ₹26 from ₹22. The data notes Citi had turned negative on the stock earlier in February 2026.

Other details in the provided text also referenced an earlier phase when Citi downgraded the stock to ‘Sell’ from ‘Buy’ and cut its target price sharply. Citi also cut its estimates and reduced its target EV/sales multiple to 3.5x, according to the same material.

HSBC: Reduce, target lowered to ₹33

HSBC suggested a ‘Reduce’ rating on the stock and cut its target to ₹33 from ₹45. In the cluster of brokerage calls, the HSBC view stood out for lowering the target while still keeping a cautious rating.

Overall, the broker set implies that even after revisions, targets continued to point to downside of up to about the low-30% range, depending on the reference price used.

Stock context: key price levels investors tracked

Ola Electric shares had settled at ₹36.50 on Wednesday, while a separate reference in the provided data lists the previous close at ₹36.96. The stock opened at ₹35.63 and traded within a day range of ₹34.83 to ₹36.10.

The stock’s longer-term drawdown remains significant. Ola Electric is described as down more than 64% from its IPO price of ₹76, and around 83% below its all-time high of ₹157.40 recorded in August 2024 after listing.

Snapshot table: price action and key levels

Brokerage view table: ratings and targets

Additional background: earlier pressure and December quarter data

The provided material also described earlier weakness around the December quarter, when Ola Electric reported a consolidated net loss of ₹487 crore, compared with ₹564 crore a year earlier. Revenue for that quarter was reported at ₹470 crore, down 55% year-on-year.

In the same context, the company reiterated a gross margin target of 35% to 40% for 2026-27 (Apr-Mar) in a post-earnings letter to shareholders. Market commentary at the time also highlighted brokerage concerns about market share loss and the time required to rebuild momentum in the electric two-wheeler segment.

Market impact: what changed after the print

Thursday’s drop reflects two parallel forces. First, the Q4 FY26 revenue contraction to ₹265 crore placed immediate pressure on sentiment. Second, even with some upward revisions, brokerage targets largely stayed below prevailing market prices, keeping the focus on downside risk.

The stock’s sharp rally from the March low to the April high also meant valuations and expectations were sensitive to quarterly delivery and revenue signals. With Sell and Reduce ratings maintained by major brokerages, investors have been left to weigh short-term operating indicators, near-term volume expectations, and the reality that targets cited in research notes remain well below recent trading levels.

Conclusion

Ola Electric’s Q4 FY26 results, including revenue of ₹265 crore and a reported net loss of ₹500 crore, triggered a fresh round of brokerage updates and a fall in the share price. Emkay, Citi and HSBC retained negative ratings, with targets ranging from ₹25 to ₹33. The next key datapoint flagged in the provided information is the company’s expectation that order volumes will double in Q1 FY27, which investors will track alongside subsequent quarterly updates.