Goldman Sachs retains ‘Neutral’ rating on Ola Electric, flags cash burn risks and cuts revenue forecasts through FY28
New Delhi: Shares of Ola Electric Mobility edged up in early trade on February 26, even as Goldman Sachs sharply reduced its price target and cautioned about continued financial and operational pressures at the electric two-wheeler maker.
At 10:10 a.m. IST, Ola Electric shares were trading 1.2% higher at ₹25.9 apiece on the BSE. The modest gain came despite the global brokerage halving its target price to ₹26 from ₹52, while maintaining a “Neutral” rating on the stock.
Goldman Sachs cuts target price, trims revenue estimates
Goldman Sachs lowered its revenue forecasts for FY26 to FY28, citing weaker demand visibility and competitive intensity in the electric two-wheeler segment. It now expects Ola Electric to command a mid-single-digit market share by FY30, a downward revision from its earlier projection of low-teens share.
The brokerage also flagged concerns over sustained EBITDA losses and elevated capital expenditure, indicating that the company may require fresh fund-raising over the next 12 to 18 months if cash burn continues at the current pace.
Operational execution under scrutiny
Restoring investor confidence would depend on improvements in three areas: expansion of a reliable service network, stabilisation of senior leadership, and consistent product quality in future launches.
The observations follow a weak third-quarter performance. Ola Electric reported operational revenue of ₹470 crore in Q3 FY26, down 55% year-on-year from ₹1,045 crore. Volumes fell to 32,000 units during the quarter, contributing to erosion in market share.
Other brokerages turn cautious
Brokerage sentiment has also turned conservative.
Citi downgraded the stock to “Sell” from “Buy” and cut its target price to ₹27 from ₹55, citing slower-than-expected EV adoption, continued market share losses, and pressure on the balance sheet due to cash burn. It revised its EV/sales multiple to 3.5x.
Similarly, Emkay Global downgraded the stock to “Sell” from “Buy” and reduced its target price to ₹20 from ₹50. While acknowledging growth in the broader EV two-wheeler segment and improving penetration after GST adjustments, the brokerage pointed to Ola Electric’s weak Q3 performance and declining volumes.
Outlook for Ola Electric shares
Although Ola Electric shares showed resilience in early trade, analysts indicate that sustained recovery in volumes, tighter cost controls, and improved operational execution will be critical for medium-term re-rating of the stock.
