Ola Electric shares dip 5% after Goldman Sachs downgrades stock to Sell. Here’s why

ETMarkets.com

Goldman Sachs has cut its revenue estimates for FY27-FY29 by up to 10%, citing expectations of prolonged operating losses at current market share levels. Key factors to monitor include the company's ability to achieve positive consolidated EBITDA and accelerate customer wins for its in-house cells.

Earlier this month, the electric two-wheeler maker finalised the terms of its Rs 1,000-crore rights issue, setting the price at Rs 27 per share, a 26% discount to its market value. The company will issue 37.03 crore partly paid-up shares under the offer.

The rights issue, which opened on Thursday, will close on October 30. Shareholders can sell or transfer their rights entitlement in the market until October 26.

The latest fundraising comes just three months after Ola Electric raised Rs 780 crore through a qualified institutional placement (QIP) in June. The company had initially planned to raise Rs 500 crore through that issue. In June, its rival Ather Energy approved plans to raise up to Rs 2,500 crore through a QIP and other equity-linked instruments.

In September, Ola Electric sold 12,894 electric two-wheelers, giving it a 6.5% market share, according to Vahan vehicle registration data, which is a proxy for sales. Its market share was 7.6% in August.

Ola Electric Q1 results

The electric scooter maker narrowed its net loss to Rs 336 crore in Q1 FY27 from Rs 428 crore a year earlier, even as revenue from operations fell 45% year-on-year.

Ola Electric reported a contraction in net losses, while revenue from operations fell to Rs 455 crore in the April-June quarter of FY27, down from Rs 828 crore in the corresponding quarter of the previous year. However, revenue surged 72% from the Rs 265 crore reported in the previous quarter (Q4 FY26).

The Bhavish Aggarwal-led company said Q1 was the first full quarter after its FY26 reset, during which it streamlined operations, tightened execution and lowered its operating cost base. Its orders rose to 44,071 units from 22,522 units in Q4 FY26, while deliveries increased to 39,192 units from 20,256 units.