Ola Electric Shares Decline 6% Following Q4 Earnings Release

Ola Electric Share Price Plunges 5.65% Amid Narrower Net Losses

Ola Electric Mobility's share price took a hit on Thursday, declining 5.65% on the National Stock Exchange (NSE) despite the company reporting narrower net losses for the quarter ended March 31, 2026. The stock opened at ₹35.63 per share, down from the previous close of ₹36.96 on Wednesday, and touched an intraday low of ₹34.83 on NSE.

The company's share price has been under pressure, with a year-to-date (YTD) decline of over 6% and a loss of 31% in a year. However, Ola Electric's management has been working to strengthen the fundamentals of the business, and the company's Q4 results reflect this effort.

Q4 Results: Narrower Net Losses and Improved Margins

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Ola Electric reported a consolidated net loss of ₹500 crore for the March quarter, a significant improvement from the ₹870 crore loss in the same period last year. The company's revenue from operations dropped sharply by 57% year-on-year (YoY) to ₹265 crore, compared to ₹611 crore in the same quarter last year. However, the company's EBITDA loss narrowed to ₹281 crore, down from ₹630 crore a year earlier.

The company's gross margins rose significantly to 38.5% in Q4FY26, up from 34.3% in Q3FY26 and 13.7% in Q4FY25. This reflects a strong industry-leading margin profile, according to Ola Electric.

Operating Cash Flow and Free Cash Flow

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Ola Electric reported its first-ever operating cash flow-positive quarter in Q4 FY26, at ₹91 crore. This was driven by PLI incentives, healthier gross margins, reduced operating expenses, and better working capital management. Consolidated free cash flow (FCF) also improved to -₹131 crore.

The company's Auto business generated a CFO of ₹213 crore and an FCF of ₹173 crore during the quarter. The cell business, however, continued to remain in its planned investment phase as Ola Electric accelerates the expansion of its Gigafactory and gears up for the next stage of cell and energy storage product development.

Brokerage Firm Maintains 'Sell' Rating

Brokerage firm Emkay Global has maintained its 'sell' rating on Ola Electric stock, despite increasing the target price by 25% to ₹25 from ₹20. The firm prefers to play the E2W theme with Ather and TVSL.

Technical Outlook

Anshul Jain, Head of Research at Lakshmishree, notes that Ola Electric is trading in a tight consolidation range on the daily charts after witnessing a sharp recovery from lower levels. The narrowing price action, combined with declining volatility and steady volume behavior, suggests strong absorption and often precedes a directional expansion move. A decisive breakout above ₹37.7 would confirm fresh momentum and likely trigger an upmove toward the ₹42 zone in the near term. Sustaining above the breakout level will be critical to maintain bullish continuation.