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Ola Electric Mobility share price drops 3.5% in intra-day deals on Tuesday, February 17 to its 52-week low of ₹27.82 after it posted weak earnings for the December quarter of 2025-26 (Q3FY26). The scrip is currently 61% from its 52-week high of ₹71.24, hit in September 2025.

Today's is the fourth consecutive session of decline for the Ola Electric stock. It has lost over 12% in this time.

It is currently over 62% lower from its IPO price of ₹76 apiece, and has shed 82% from its all-time high of ₹157.40 apiece hit in August 2024 after debut.

The scrip has been under pressure, crashing 54% in last 1 year and 32% in past 6 months. Meanwhile, it also lost 34% and 25% in last 3 and 1 month, respectively.

In a regulatory filing released on Friday, February 13, the company's net loss narrowed to ₹487 crore in the quarter under review, compared with a loss of ₹564 crore recorded in the third quarter of the 2024–25 financial year (Q3FY25).

Its consolidated revenue from operations, however, declined sharply to ₹470 crore in Q3FY26, a 55% drop year-on-year (YoY) from ₹1,045 crore in the corresponding period last year.

During the quarter ended December 31, 2025, the company delivered a total of 32,680 units. The Bengaluru-based company said the quarter represented a structural reset, as it realigned its retail footprint, cost structure, and operating model to achieve a sustainable steady state. The move came amid slower growth in EV penetration and the need to strengthen service execution.

The company reported a record consolidated gross margin of 34.3% in Q3FY26, reflecting an rise of 15.7 percentage points YoY and 3.4 percentage points QoQ. It attributed the improvement to the structural benefits of its vertically integrated model, Gen 3 platform economics, and disciplined execution.

“Q3 FY26 marked a structural reset for Ola Electric. The company chose to fix the fundamentals by restoring service execution, resetting the cost structure, and deepening vertical integration. This resulted in a leaner operating model with a materially lower breakeven and industry-leading gross margins,” the firm said.

The company also stated that it had undertaken a comprehensive operational transformation through optimisation of its store and service network and the adoption of AI-led automation.

Furthermore, it noted that over the next couple of quarters, these initiatives were expected to reduce quarterly consolidated operating expenditure to ₹250–300 crore, bringing down the company’s EBITDA breakeven to around 15,000 units per month.

As demand recovers, the company highlighted this operating model is expected to support 3–4 times volume scaling with minimal incremental operating costs, translating into stronger operating leverage and a clearer path towards sustainable profitability.

Should you buy?

Emkay Global downgraded Ola Electric to ‘Sell’ from ‘Buy’ and slashed its target price to ₹20 per share from ₹50 per share. The revised target indicates a downside potential of over 35 percent from the stock’s previous closing price of ₹30.89 per share.

The brokerage flagged a weak performance in the third quarter, even as they maintained that the broader electric two-wheeler theme remains structurally strong. It also noted that the industry is witnessing healthy growth, with penetration rebounding after a brief slowdown following the GST rate cuts. However, it pointed out that Ola recorded a continued decline in volumes to around 32,000 units in Q3 FY26, alongside a loss of market share.

Furthermore, the brokerage cautioned that the recovery could prove to be a prolonged and challenging process for Ola, particularly in an environment where incumbents are stepping up focus and peers such as Ather Energy continue to scale up operations.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.

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