Ola Electric Slips 4% on Lower Q4 Revenue as HSBC Downgrades Price Target

Ola Electric Shares Decline as Revenue Takes a Hit in Q1 FY27

Ola Electric's shares dropped by more than 4 percent after the company reported a significant decline in revenue for the March quarter. The electric two-wheeler maker posted a consolidated net loss of Rs 500 crore for the quarter, a substantial improvement from a loss of Rs 870 crore in the corresponding period last year.

The company's revenue from operations declined by 56.6 percent year-on-year to Rs 265 crore in the January-March quarter, down from Rs 611 crore a year ago. This decline has led brokerages to flag pricing pressure and execution-related concerns.

HSBC Maintains "Reduce" Rating on Ola Electric

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Brokerage HSBC has maintained a "Reduce" rating on the stock and cut the target price to Rs 33. According to HSBC, Ola Electric is focusing on sustainable volume growth and margin expansion following a year-long efficiency improvement programme. The company's cautious approach towards scaling battery cell production appears prudent, but delays have reduced a key competitive advantage. HSBC has also cut estimates due to weak volume growth.

Citi Retains "Sell" Rating on Ola Electric

Citi has retained a "Sell" rating on the stock with a target price of Rs 26. The brokerage stated that the March quarter performance was below estimates due to lower average selling prices, partly on account of accounting changes related to extended warranty. However, Citi noted that gross margins remained strong, even after adjusting for production-linked incentive benefits.

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Ola Electric's Guidance for Q1 FY27

For the first quarter of FY27, the company has guided for 40,000-45,000 orders and revenue of Rs 500-550 crore. The management has highlighted efforts towards cost reduction and cash flow generation, with the auto business reporting positive free cash flow in the fourth quarter.

Service-Related Issues Stabilise

According to Ola Electric, service-related issues were the key demand constraint during FY26. However, the company has stated that the situation has now "materially stabilised". Average service turnaround time declined by 88 percent between October 2025 and March 2026, while the service backlog was reduced significantly.

April Registrations Show Improvement

Ola Electric's April registrations rose by 20 percent month-on-month, even as the broader electric two-wheeler industry recorded a 22 percent decline during the period.