Reasons:
On July 14, 2025, Ola Electric Mobility Ltd company per share jumped nearly 19% in intraday and the share has closed around ₹46–47. This type of high volume jump has surprised the stock market investing community as the company had reported net loss of ₹428 crore for the June quarter. However, the amount of loss has slandered compared to the previous quarter that is ₹ 870 crore.
After Q1 2026 results and management’s guidance of on higher gross margins and revenue expectations for FY26, Investors has convinced and showing their interest and driving the stock to its highest single-day gain in months.
Quarterly Loss Narrows and expecting Profitability in future
Despite of net loss reported in Q1 FY26, the company’s loss has improved remarkably as compared to Q4 in FY25.This is showing that the company is making progress toward controlling costs and improving operational efficiency. Although the company has not achieved it breakeven point yet but the company as well as the investors are expecting Ola’s automotive segment posted a positive EBITDA in June, marking a major milestone in its journey toward profitability in the near future. The improvement in losses indicating that the business is on a clear recovery path.
Margin Improvement Expected in FY26
Ola Electric signals optimist for the upcoming financial year by reporting a significant improvement in its gross margins. It has targeted 35% to 40% in FY26 compared to from 20.5% in FY25.
This type of achievement in margin expansion is guided by better economies of scale, improved supply chain efficiency, and ongoing cost optimization measures.
In addition to the above expectation, the company has also aimed for a revenue target of ₹4,200–₹4,700 crore for FY26. It indicating the company’s strong growth aspiration in FY26. These type of predictions about future business conditions of the company motivates investors to be optimist for the future.
Brokerage and analyst overall views on Ola Electric Mobility (till date):
HSBC (Hold/Pending Outlook)
According to HSBC, due to quality, service issues and market mounting competition there is a ongoing volume disappointments in the Ola Electric Mobility. This is because Ola’s market share shrank to 23%, which was 49% earlier in FY25. Hence, HSBC downgraded the stock to Hold from Buy by lowering its target to ₹70 and also point out the reductions of cost from vertical integration could justify a target of ₹110.
Despite of this, HSBC still considers Ola’s EV bike tech is 2–3 years ahead, and expects success in its in-house battery venture to provide a competitive edge.
Goldman Sachs & BofA (Bullish)
Goldman expects 50% upside, projecting EBITDA breakeven by FY27, 40%+ CAGR through FY30, and a target of ₹160.
BofA set a ₹145 target by highlighting Ola’s tech/cost leadership as justification.
Investec (Hold)
Investec has suggested to Hold, with a ₹76 target. The main reasons behind this is fading first‑mover advantage, rising competition, and high capex for battery manufacturing, which could affect cash flow.
Kotak Institutional Equities (Bearish)
Kotak downgraded to Sell, cutting the target to ₹30. The reasons are: weakening volumes, brand dilution, warranty cost rise, and execution delays, especially in the motorcycle segment. They also cut FY26–27 volume forecasts by 32–34%.