Ola Electric Share Price Falls 5% to Record Low After Weak Q3 FY26 Performance

Published: February 17, 2026
Publisher: IPO GMP India Research Desk

Shares of Ola Electric declined nearly 5 per cent in intraday trade, hitting a fresh record low of ₹27.36 on the BSE amid continued concerns over growth and profitability. The stock has extended its losing streak for the fourth straight session and has corrected almost 19 per cent over the past month, underperforming the broader market.

At the current price levels, the company’s market capitalisation stands near ₹12,300 crore. The decline follows the release of its December quarter (Q3 FY26) financial results, which reflected significant pressure on revenue and volumes.

Q3 FY26 Financial Performance

During the December quarter, Ola Electric reported a consolidated net loss of ₹487 crore, narrowing from ₹564 crore in the same quarter last year. However, revenue from operations declined sharply by 55 per cent year-on-year to ₹470 crore, compared to ₹1,045 crore in Q3 FY25.

On a sequential basis, revenue also dropped around 32 per cent from ₹690 crore reported in Q2 FY26.

The decline in revenue was largely attributed to a steep fall in scooter sales volumes. The company sold approximately 32,680 units during Q3 FY26, significantly lower than the 84,029 units sold in the corresponding quarter last year.

Margins Show Improvement Despite Revenue Pressure

Despite the drop in volumes, the company reported improvement in gross margins. Consolidated gross margin improved to 34.3 per cent, marking a substantial year-on-year expansion. This indicates cost optimisation efforts and better operational efficiencies.

However, analysts believe that improved margins alone may not offset the impact of declining volumes and persistent competitive pressures in the electric two-wheeler segment.

Brokerage Outlook and Target Price

Several brokerages have revised their outlook following the Q3 results. Market experts believe that the company’s turnaround may take longer than expected due to ongoing challenges in demand recovery, service quality improvements, and competitive intensity.

Analysts have highlighted concerns over slowing EV penetration in the two-wheeler segment, increased competition, and negative operating leverage. Some brokerages have reduced their target price estimates, citing continued market share erosion and weak near-term visibility.

Large cash outflows and rising debt levels have also emerged as key concerns for investors monitoring the company’s balance sheet strength.

Market Sentiment

While the broader electric vehicle theme in India remains structurally positive, Ola Electric’s recent performance suggests near-term volatility may persist. Investors are closely watching management’s strategy to regain market share and stabilise revenue growth in upcoming quarters.

With the stock trading near record lows, market participants are assessing whether valuation levels adequately factor in operational risks and recovery timelines.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.