Ola Electric shares tumble over 6% after Q2 show; Goldman Sachs, Citi cut FY27 estimates on weak volume growth

Ola Electric shares tumbled more than 6% after the opening bell on Friday, November 13, as investors focused on the company’s weaker-than-expected volume and revenue growth, along with the management’s conservative full-year (FY27) margin guidance as global analysts cut estimates after July to September quarter (Q2) results.

NSE data showed that Ola Electric share price declined 6.3% to hit an intraday low of ₹33.48 apiece on Friday’s market, in comparison to ₹35.74 apiece at the previous equity market close.

The company’s stock was reacting on Friday’s market as the two-wheeler electric vehicle (EV) maker announced its muted Q2 earnings report after the market operating hours on Thursday night, November 13.

In the Q2 results, Ola Electric recorded a contraction in its overall consolidated net loss for the period to ₹362 crore, in comparison to a ₹418 crore net loss in the same period of the previous financial year.

However, the EV maker’s consolidated top-line revenues declined 39% year-on-year (YoY) to ₹421 crore, from ₹690 crore in the corresponding period a year earlier, due to weaker volumes.

Margins under stress

The filing data also showed that Ola Electric’s gross margins contracted to 29.93% in Q2 FY27 from 30.9% in Q2 FY26.

The company’s management expects the gross margin for its auto business to further reduce due to the dealer rollout in the upcoming period, but assured investors that the operating margin will improve meaningfully.

“Gross margin was stable from Q1 to Q2 despite rising commodity prices. Over Q3 and Q4, gross margin will reduce a little due to the dealer rollout, but operating margin will improve meaningfully,” the management said in a shareholders' letter.

Ola Electric’s consolidated adjusted EBITDA margins plummeted to -58.5% in the quarter under review, from -37.4% in the September quarter of FY26.

Analysts cut estimates

Analysts from global investment firm Goldman Sachs said that the brokerage is cutting their revenue estimates for FY27-29 by up to 6%, citing weak volumes and persistent losses, which remain key challenges for the EV manufacturing company in the upcoming period.

“Expects over 650 basis points (bps) gross margin pressure, partly offset by ₹500 million fixed cost savings,” said Goldman Sachs analysts.

The management now aims to transition into dealer-led stores, targeting 700 outlets by the fourth quarter of FY27, in turn replacing the existing company-owned stores in the market.

In line with the outlook, Citibank analysts also cut their FY27-29 estimates for volume growth by 21% to 22% and their revenue estimates for the period by 26% to 42%.

The global investment firm cited weaker-than-expected Q2 performance, with Ola’s deliveries coming in at around 35,000 to 36,000 units in the September quarter against an estimated volume of 44,000 units in the period.

“Dealer-led transition and 6GWh cell facility ramp-up offer recovery opportunities, but market share losses persist,” said Citibank analysts.

Ola Electric witnessed a contraction in its volume, revenue and EBITDA forecasts amid supply constraints, rising costs and weaker battery storage expectations in the upcoming period.

The company management is targeting a monthly production of 25,000 vehicle units by December 2026. However, this target is “optimistic” as per Citibank analysis.

Stock down 7% YTD

NSE data showed that Ola Electric shares have lost more than 7% of their value on a year-to-date (YTD) basis so far this year and have declined around 0.7% in the last one-month period.

In the longer term, the EV maker’s stock has declined 17.4% in the last one-year period.

However, Ola Electric shares have risen 1.8% in the last five market sessions, according to the exchange data.

Shares of Ola Electric surged to their 52-week high of ₹49.05 apiece on June 9, 2026, while the 52-week low was at ₹22.25 apiece on March 16, 2026. The company’s market capitalisation (m-cap) was at ₹16,079 crore as of the trading session on Friday, November 13.