“The Hon’ble High Court of Bombay at Goa has stayed the warrant issued by the District Consumer Commission, South Goa. Additionally, the Hon’ble Court observed that the Commission exceeded its jurisdiction under the Consumer Protection Act in issuing the warrant,” the pure-play EV company said in a regulatory filing on February 17.
Ola Electric shares have been under pressure recently due to fundamental reasons. In the previous session, international brokerage Citi downgraded Ola Electric to “Sell” from “Buy” and cut its target price by 51% to Rs 27 from Rs 55, citing persistent headwinds to volume growth.
The brokerage noted that EV penetration in India’s two-wheeler segment has been more sluggish than anticipated, with GST cuts further slowing the pace of electrification. Citi highlighted that Ola Electric has lost market share amid service-related challenges, intense competition, and adverse customer perception.
The company’s Q3 results came in below estimates, largely due to negative operating leverage. While the brokerage acknowledged the improvement in gross margins and said better operating leverage could support EBITDA from now on, it cautioned that management’s efforts to enhance product and service quality may take time to yield results. Additionally, sustained negative cash flows could raise investor concerns around the balance sheet and rising net debt levels.
Ola Electric technical view
Hitesh Tailor, Technical Research Analyst at Choice Broking, said Ola Electric Mobility Ltd is trading around Rs 28.10 and continues to show weakness on both daily and weekly charts. The stock remains in a clear downtrend, characterised by a pattern of lower highs and lower lows, indicating sustained selling pressure.
He noted that the stock has broken decisively below the Rs 30–32 support zone, which previously acted as a demand base. This breakdown confirms the continuation of the bearish trend, and the earlier support band is now likely to act as immediate resistance on any pullback.
From a technical standpoint, the stock is trading below its 50-, 100- and 200-day exponential moving averages on both daily and weekly timeframes, reinforcing the negative bias. While the RSI is at 27.57, indicating oversold conditions, and a mild bullish divergence is visible on the daily chart, there is no clear price confirmation of a reversal yet.
Tailor said a sustainable upside would require a shift in trend structure, supported by strong volumes and positive fundamental triggers. Until such confirmation emerges, he advises traders to remain cautious and avoid initiating fresh long positions.
Ola Electric Q3 results
The electric two-wheeler maker posted a net loss of Rs 487 crore in Q3 FY26, compared with Rs 564 crore in the corresponding quarter last fiscal.
However, revenue from operations dropped 55% year-on-year to Rs 470 crore, reflecting slower growth in EV penetration and lower volumes. Adjusted operating EBITDA losses also improved significantly, narrowing to Rs 323 crore in the third quarter from Rs 494 crore a year ago.
In its Shareholders’ Letter for Q3 FY26, Ola Electric described the quarter as a “structural reset.” The company said it has realigned its retail footprint, cost structure, and operating model to focus on strengthening fundamentals rather than chasing short-term volumes. This recalibration, management noted, has resulted in a structurally lower volume breakeven point and improved operating leverage.
During the quarter, the company reported a record consolidated gross margin of 34.3%, expanding 15.7 percentage points year-on-year and 3.4 percentage points sequentially. The margin improvement was attributed to vertical integration, Gen3 platform economics, and tighter cost discipline. The company reiterated its guidance of achieving gross margins in the 35–40% range in FY27.
Ola Electric shares are down 23% since the beginning of the year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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