Ola Electric shares tumble 9% after 17% rally in 4 days. Why brokerages remain cautious

Ola Electric shares fell to Rs 38.75 apiece on NSE on Friday despite the overall positive market sentiment. This sharply brought down the EV scooter-maker’s market capitalisation to nearly Rs 18,000 crore.

The Bhavish Aggarwal-led company recently announced that it will consider raising funds through a rights issue at a board meeting scheduled for September 28. The proposed fundraise, subject to regulatory and statutory approvals, comes weeks after the company’s board approved plans to raise up to Rs 1,500 crore through equity shares and other securities.

Also read | Ola Electric to consider rights issue as it looks to raise fresh capital

Previously, Ola Electric raised Rs 780 crore through a QIP (qualified institutional placement) in June. The company had initially planned to raise Rs 500 crore through the issue.

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Ola Electric share price history

Shares of the company had gained 17% over the past four sessions before declining sharply today. Despite the recent volatility, the stock remains significantly below its IPO price. After a flat market debut in August 2024, Ola shares rose to a lifetime high of Rs 157.40 apiece later that year. The stock subsequently lost momentum and fell to a lifetime low in March 2026, nearly one-seventh of its peak value.
The stock had fallen more than 62% from its 52-week high of Rs 59.20 apiece, hit in September last year, to a 52-week low of Rs 22.25 apiece in March this year. However, the stock subsequently staged a recovery. Overall, Ola Electric shares have gained 5% in 2026 so far, supported by strong sales data, PLI incentives and other factors that have improved investor sentiment towards the EV scooter maker.

Should you buy, sell or hold Ola Electric shares?

Ola Electric last month reported a reduction in net loss to Rs 336 crore in Q1 FY27, down from Rs 428 crore in the same period last year, although revenue from operations fell 45% year-on-year.

Following the Q1 results, brokerages continued to remain bearish on the stock. Citi maintained its ‘Sell’ call on the shares of Ola Electric, with a target price of Rs 26 apiece. Weaker volumes and lower gross margin were offset by cost control and PLI penalty reversal, it said.

Kotak Institutional Equities also maintained its ‘Sell’ call on the shares of Ola Electric, with a target price of Rs 20 apiece. The brokerage noted that the company’s volume scale remains the critical hurdle.

Goldman Sachs has a ‘Neutral’ rating on the shares of Ola Electric with a target price Rs 40 apiece. The company’s cash burn remains a concern, with FCF at negative Rs 3.5 billion and no material cell revenue expected in Q2, the international brokerage said.

Also read | Ather & Ola Electric: A tale of two contrasting rides

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.