Ola Electric shares rise over 4.5%; why the battered stock is in spotlight on Wednesday, February 18

The company said that the Hon’ble High Court of Bombay at Goa has stayed the warrant issued by the District Consumer Commission, South Goa, against Ola CEO Bhavish Aggarwal.

Additionally, the Hon’ble Court observed that the Commission exceeded its jurisdiction under the Consumer Protection Act in issuing the warrant.

"The company requests that due note be taken of the aforesaid factual legal position," the statement added.

Meanwhile, Citi, in its note on the company, has noted persistent headwinds to Ola's volume growth. It added that EV penetration in the Indian 2W sector has been more sluggish than expected.

GST cuts have further slowed electrification, Citi noted.

Ola has lost market share, hampered by service issues, high competition, and adverse customer perception.

Citi further said that Q3 results were below estimates due to negative operating leverage.

However, it acknowledges impressive gross margin trends and says that better operating leverage could boost EBITDA.

Analysts at Citi said that the management’s efforts to improve product/service quality could take some time to fructify.

Additionally, large negative cash flow could result in investor concerns on the balance sheet – net debt.

Ola Electric Q3 FY26 Result

Ola Electric said that its net loss narrowed to ₹487 crore during the October-December period from the loss of ₹564 crore it had reported in the same period last year.

Its consolidated revenue from operations saw a decline as it came in at ₹470 crore in Q3 FY26, reflecting a 55.02% year-on-year (YoY) fall from ₹1,045 crore logged in the year-ago period.

It posted total deliveries of 32,680 units in the third quarter ended December 31, 2025.

The Bengaluru-based firm said the quarter marks a structural reset for the company, as it realigned its retail footprint, cost structure, and operating model to a sustainable steady state amid slower EV penetration growth and the need to strengthen service execution.

The company delivered a record consolidated gross margin of 34.3%, expanding 15.7 percentage points YoY and 3.4 percentage points quarter on quarter, reflecting the structural advantages of its vertically integrated model, Gen 3 platform economics, and disciplined execution, it added.

"Q3 FY26 marks a structural reset for Ola Electric. We chose to fix the fundamentals by restoring service execution, resetting our cost structure, and deepening vertical integration. The result is a leaner operating model with materially lower breakeven and industry-leading gross margins," a company spokesperson stated.

Ola's stock price trend

Ola Electric has emerged as one of the market’s worst underperformers, significantly eroding investor wealth after hitting an all-time high of ₹157 in 2024.

The stock has plunged over 80% from its peak of ₹157, which it touched on August 20, 2024, according to data from the National Stock Exchange of India (NSE).