Ola Electric’s shares have declined consistently over the past several months, reflecting weakening sales and a contraction in market share that has weighed on investor confidence. Over the past one month, the stock has fallen nearly 17 percent and declined a further 5 percent during trading on Friday. The reduction in the company’s retail network and moderating demand have contributed to the erosion in sentiment.
The company is planning significant changes to its showroom network. By the end of March 2026, Ola Electric intends to limit its store count to approximately 550. Previously, the company had established around 4,000 outlets nationwide. According to its recently released quarterly report, the number of operational stores has already been reduced to around 700.
Third-quarter performance reflected continued pressure. Brokerage firm MK Global said the company’s sales declined to 32,680 units, representing a 61 percent drop compared with the same quarter last year. In the electric two-wheeler segment, the company’s market share fell from 6.3 percent to 4.2 percent during the first 18 days of February.
For the quarter ended December 31, 2025, the company reported a net loss of Rs 487 crore, compared with a loss of Rs 564 crore in the corresponding quarter last year. Revenue from operations declined 55 percent to Rs 470 crore.
The company’s net debt position also changed materially. During the first nine months of FY2026, Ola Electric reported net debt of approximately Rs 670 crore, compared with a net cash position of Rs 160 crore in the first half of FY2026. According to the brokerage, a potential stake sale in the company’s battery business to a strategic investor could result in a substantial cash inflow.
Separately, a complaint was filed against Chief Executive Officer Bhavish Aggarwal before a consumer commission. The District Consumer Commission in Goa issued an arrest warrant, which has been stayed for the time being by the Bombay High Court. The complainant, Pritesh Chandrakant Ghadi, sought a refund of Rs 1.47 lakh and compensation of Rs 50,000 in connection with an alleged defect in an Ola S1 Pro second-generation scooter.
MK Global has downgraded its rating on the stock to Sell and reduced the target price from Rs 50 to Rs 20. At the current level of Rs 30, this implies a potential downside of 33 percent, according to the brokerage.
