Ola Electric shares drop 6% after Q4 results miss estimates despite narrowing losses

Shares of Ola Electric dropped 5.7% to its intraday low of ₹34.83 during the morning market hours on Thursday, compared to ₹36.96 at the previous market close, according to the NSE website.

Experts predict that in the upcoming quarter, the company is expected to increase its volumes and operating margins as it aims to enhance its service offerings in the domestic market.

As of 1:09 pm, Ola Electric shares were trading 4.41% lower at ₹35.32 on Thursday, May 21, compared to the previous market close.

Ola’s Q4 results review

In the March quarter results, Ola Electric’s consolidated net loss narrowed to ₹500 crore, from ₹870 crore in the same quarter of the previous financial year, according to the NSE filings.

The two-wheeler EV maker’s revenue from core operations dropped 56.62% to ₹265 crore in the fourth quarter, compared year-on-year with ₹611 crore in the same period a year ago.

In an official statement, Ola Electric also said that the company’s consolidated gross margin reached 38.5% as the operating expenses decreased through the fiscal year. The company also said that the cash burn had reduced as sales recovered in the market.

The company’s consolidated adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin dropped 123% YoY, while the gross margins were at 38.5%.

Sharing the outlook for the first quarter of the financial year ending 2026-27, the company said that it expects a consolidated revenue in the range of ₹500-550 crore as the firm moves to hold margins, reduce operating expenses, and boost its Gigafactory.

What do experts say?

Leading investment firm Citibank analysts said that Ola Electric’s Q4 results failed to beat estimates due to the lower average selling price (ASP) of the products and the accounting changes for extended warranty.

Looking ahead, the analysts also expect Ola Electric’s market share to improve in the upcoming period as the company focuses on enhancing its service offering. The company is also focused on cost reductions and cash flow generation.

“While acknowledging Ola’s gross margin improvement, we’d look for sustained volume growth before getting more constructive,” said Citibank analysts. “As 90% of Ola’s operating expense is fixed, if volumes do not improve, EBITDA would be under pressure despite high gross margins.”

Similar to Citibank, Hong Kong-based investment firm, HSBC analysts said that Ola is focused on sustainable volume growth and margin expansion after a year-long efficiency improvement programme.

“Cautious battery cell production scaling looks prudent, but delays have usurped a key competitive advantage from the company,” said the experts.

After the markets opened on Thursday, the investors were reacting to the reduction in revenues and the subdued performance of the company in the March quarter results.

Ola Electric share price trend

Ola Electric shares have lost more than 30% returns on their investment in the last one year, and more than 5.4% so far in 2026, according to NSE data. The company’s stock was down 5.3% in the past one month, and was trading 1.5% lower in the last five market sessions.

Shares of the company hit their 52-week high of ₹71.25 on September 4, 2025, while the 52-week low level was at ₹22.25 on March 16, 2026, as per the exchange data. The company’s market capitalisation (m-cap) was at ₹15,557 crore as of Thursday’s trading session.