Ola Electric shares fell more than 6% on November 13, 2026, after the company released its Q2 earnings report and management provided a cautious outlook for the full fiscal year 2027 (FY27). Investors reacted to weaker-than-expected volume and revenue growth, along with reduced margin guidance, prompting global analysts to cut their forecasts for the company.
- Ola Electric's Q2 revenue declined 39% year-on-year to ₹421 crore due to weak volumes.
- The company reduced its consolidated net loss to ₹362 crore from ₹418 crore the previous year.
- Gross margins contracted slightly to 29.93% in Q2 FY27 from 30.9% in Q2 FY26.
- Goldman Sachs and Citi cut their FY27-29 revenue and volume growth estimates.
- Ola plans to shift to a dealer-led store model, targeting 700 outlets by Q4 FY27.
Why did Ola Electric shares drop after the Q2 report?
The shares declined 6.3% to an intraday low of ₹33.48 on November 13 as investors focused on the company’s weaker volume and revenue growth. Ola Electric reported a 39% drop in consolidated revenues compared to the same quarter last year, mainly due to lower vehicle deliveries. The company’s adjusted EBITDA margins also worsened, falling to -58.5% from -37.4% a year earlier.
What were the key financial figures in Ola Electric’s Q2 FY27 results?
Ola Electric’s consolidated net loss narrowed to ₹362 crore from ₹418 crore in Q2 FY26. However, revenues dropped to ₹421 crore from ₹690 crore year-on-year. Gross margins decreased slightly to 29.93% from 30.9%. The company’s adjusted EBITDA margin showed significant losses, reflecting ongoing cost pressures and weaker sales volumes.
How are analysts adjusting their forecasts for Ola Electric?
Goldman Sachs lowered revenue estimates for FY27-29 by up to 6%, citing weak volumes and persistent losses. They expect gross margin pressure of over 650 basis points but anticipate some fixed cost savings. Citibank cut volume growth forecasts by 21% to 22% and revenue estimates by 26% to 42%, highlighting supply constraints and weaker battery storage expectations as challenges.
What is Ola Electric’s management plan moving forward?
The company plans to transition from company-owned stores to a dealer-led model, aiming for 700 dealer outlets by the fourth quarter of FY27. Management expects gross margins to decline slightly due to this rollout but believes operating margins will improve meaningfully. They target a monthly production of 25,000 vehicles by December 2026, although analysts consider this optimistic.
How has Ola Electric’s stock performed recently?
On a year-to-date basis, Ola Electric shares have dropped over 7%, with a 17.4% decline over the past year. The stock hit a 52-week high of ₹49.05 in June 2026 and a low of ₹22.25 in March 2026. Despite recent declines, shares rose 1.8% over the last five trading sessions before November 13. The company’s market capitalization stood at ₹16,079 crore on that date.
