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Shares of Ola Electric fell as much as 5.7% to touch an intraday low of ₹34.8 on the BSE today as investor sentiment remained weak following bearish brokerage commentary after its Q4 results.

The stock later pared some losses and was trading 3.7% lower at ₹35.5 at 11:47 IST. The company’s market capitalisation stood at ₹15,684.9 Cr (about $1.6 Bn).

Shares of Ola Electric have slipped over 6% so far in 2026 and are down 31% on a one-year basis.

The decline in the stock came even as the EV maker reported a 43% decline in consolidated net loss to ₹500 Cr in Q4 FY26 from ₹870 Cr a year ago. However, sequentially, loss widened 3% from ₹487 Cr in the December quarter.

Operating revenue plunged 57% YoY and 44% QoQ to ₹265 Cr during the quarter. Including other income of ₹39 Cr, total income stood at ₹304 Cr.

Revenue from the automotive business fell about 57% YoY to ₹264 Cr, while revenue from the cell business remained flat at ₹4 Cr.

The decline in automotive revenue came as electric two-wheeler deliveries shrank about 61% YoY to 20,256 units during the quarter.

Ola Electric said Q4 FY26 was a low-volume quarter but claimed that its cash burn reduced significantly. Total expenses declined 57% YoY to ₹546 Cr, helping the company report its first operating cash flow positive quarter with consolidated CFO of ₹91 Cr.

The company also said its customer service operations have now “materially stabilised”, with average service turnaround time reducing from around nine days in October 2025 to nearly a day in March 2026.

Meanwhile, the company’s auditors flagged concerns around its cash flows and funding position, noting that Ola Electric reported negative operating cash flows of ₹775 Cr in FY26.

The auditors added that the company is relying on existing cash reserves, operational improvements, credit lines and ongoing investor discussions to support operations.

The auditors also noted that Ola Electric has substantially completed investor engagement for its proposed ₹1,500 Cr qualified institutional placement (QIP), which is expected to support liquidity and working capital needs.

While vehicle deliveries stayed under pressure in Q4 FY26, Ola Electric said demand improved in recent months, with registrations rising 20% month-on-month to 11,391 units in April after doubling in March.

The company expects Q1 FY27 orders to nearly double sequentially to around 45,000 units, which it believes will help move its auto business towards EBITDA and free cash flow positivity during FY27.

However, Ola Electric said margins could remain moderate over the next two quarters due to commodity inflation and pricing investments to drive growth.

The company added that its focus in FY27 will remain on recovering volumes, improving service, reducing costs, ramping up its Gigafactory and increasing the use of in-house battery cells.

Despite the operational improvements, brokerages continued to remain bearish on Ola Electric.

Emkay Global Financial Services retained its ‘Sell’ rating on the stock and raised its target price to ₹25 from ₹20, citing stronger industry growth assumptions.

Citigroup also maintained its ‘Sell’ call and revised its target price upward to ₹26 from ₹22 earlier.

Meanwhile, HSBC retained its ‘Reduce’ rating and lowered its target price to ₹33 from ₹45, implying up to 32% downside from current levels.

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