FILE PHOTO: Ola Electric's S1 Air e-scooters are pictured inside its manufacturing facility in Pochampalli in Tamil Nadu
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Ola Electric Mobility shares declined 5.4 per cent in early trade despite the company narrowing its loss by 21 per cent y-o-y to ₹336 crore in Q1FY27.The stock traded at ₹40.80 at 10.27 am after hitting a low of ₹38.85 on the NSE, against the previous close of ₹41.07.The company’s revenue fell 45 per cent to ₹455 crore in the quarter. Brokerages remained cautious, citing concerns around volumes, margins, competition and cash flow.Goldman raises targetGoldman Sachs maintained its neutral rating on Ola Electric and raised its target price to ₹40 from ₹38.9. The brokerage said Q1 was weak, with revenue down 45 per cent y-o-y and an EBITDA loss of ₹1.65 billion, while margins fell to 30.9 per cent.Goldman Sachs noted that volumes recovered to around 40,000 units, with dealer-led distribution and the ramp-up of 6GWh cell capacity as key upcoming triggers. However, it said cash burn remained a concern, with free cash flow at negative ₹3.5 billion and no material cell revenue expected in Q2.The brokerage raised its FY27-29E EPS estimates on volume recovery but retained its Neutral view, citing execution and cash-flow risks.Kotak, Citi retain sellKotak maintained its sell rating on Ola Electric with a target price of ₹20. It said volume scale remained the critical hurdle and that Q1FY27 adjusted EBITDA margin was below expectations due to lower ASPs.Kotak noted sequential volume recovery, but said the volume trajectory needed to scale up further. It also flagged FCF outflow as another challenge, saying that if the current volume trajectory did not improve, the company would be required to raise capital.Citi also maintained its sell rating with a target price of ₹26. The brokerage said weaker volumes and lower gross margin offset cost control and the PLI penalty reversal. It noted that losses were lower than its estimate, but volumes remained sluggish and ASPs weak, while competition was escalating.Citi said the positive impact of the shift to a dealership-based model was uncertain at this stage and that Ola’s performance looked comparatively much weaker, while legacy players were also performing well.Emkay stays cautiousEmkay Global retained its sell rating and target price of ₹30. The brokerage said Ola’s volume rose 93 per cent q-o-q to 39.2k units from 20.2k units in Q4FY26, but was down 43 per cent y-o-y.Emkay Global maintained a cautious stance on the sustainability of the recovery and said volume and share trends remained monitorable. It noted that Ola’s E-2W market share rose to 8.3 per cent in Q1 from 5 per cent in Q4FY26, but was seeing a reversal to around 6.5 per cent in Jul-26TD as TVS, Bajaj and HMCL ramped up capacities.The brokerage also said competition could intensify as Ather’s AURIC plant comes online in Q3. While Ola is taking measures to improve execution, cut costs and conserve cash, Emkay Global said the process could be difficult and long-drawn-out due to greater focus by incumbents and the scale-up at Ather.Emkay Global said the 13 per cent change in FY27E-28E EPS mainly reflected lower opex and depreciation. It retained its Sell rating and ₹30 target price, valuing the company at 3.5x EV/S for the Auto business.Published on August 10, 2026
