Ola Electric shares fall 6% even as Q1 loss narrows. Why brokerages see up to 51% downside

Ola Electric's stock price dropped by 6% despite a significant reduction in its net loss for the first quarter of fiscal year 2027. The company reported a loss of Rs 336 crore, which is a marked improvement from the Rs 428 crore loss recorded in the same period last year. However, the drop in shares was driven by investor concerns over the company's financial health. Revenue from operations fell by 45% year-on-year to Rs 455 crore, indicating a slowdown in sales growth. This decline occurred even as quarterly revenue saw a 72% increase from the previous quarter, suggesting a volatile performance.

This mixed financial report has led several brokerage firms to project a substantial downside risk for the company's stock. Some analysts have suggested that the shares could fall by as much as 51% from their current levels. The primary reasons cited for this bearish outlook include the sharp decline in annual revenue and the continued high levels of net loss. Investors are closely watching the company's ability to turn its operational losses into sustained profitability and stabilize its sales momentum in the coming quarters.