Ola Electric Mobility share price slumps over 7% post Q3 results. Should you buy or sell?

Ola Electric Mobility share price dropped more than 7% following its Q3 results on Monday, February 16. The company reported disappointing earnings for the third quarter, prompting brokerage firm Emkay Global to downgrade its rating and reduce its target price by 60%.

The analyst has revised the stock's rating to 'sell' from its earlier 'buy' recommendation and lowered the price target to ₹20 per share from ₹50. Ola Electric Mobility reported revenue of ₹504 crore for the December quarter, which is a decline of 57% year-over-year from ₹1,172 crore and a 33% decrease from ₹756 crore in the September quarter.

The firm announced a loss of ₹487 crore, which is less than the ₹564 crore loss from the previous year but more than the ₹418 crore loss reported in the September quarter.

Founder and CEO Bhavish Aggarwal informed analysts that the significant investment phase for Ola Electric has concluded, and the company will now concentrate on increasing its installed capacity while tackling service execution issues.

Emkay Global's report indicated that Ola experienced a disappointing Q3, with revenue decreasing by 55% compared to the previous year, due to a 61% year-over-year decline in volume. The gross margin (GM) increased by 340 basis points quarter-over-quarter to reach 34.3%, boosted by PLI accrual for Gen3. EBITDAM losses widened to -58%, compared to -29% in Q2.

However, the brokerage stated that the fundamental theme of electric two-wheelers (E2W) remains robust; the industry is witnessing considerable growth (33%/24% YoY in January/February 2026), aided by a resurgence in penetration following a setback from recent GST reductions.

Nevertheless, the brokerage house noted that Ola has experienced a steady drop in volume, falling to 32,000 units in Q3 (down from 125,000 in Q1) and a decline in market share (ranking fifth, with 6% share).

As per Emkay Global, Ola is implementing various strategies to enhance execution, such as consolidating stores to around 700, while also reducing expenses and conserving cash, with estimates of operational expenses ranging from ₹2.5-3 billion per quarter compared to ₹4.3bn in Q3.

Nonetheless, Emkay perceives this as potentially a challenging and prolonged journey, especially with increased attention from competitors and growth at Ather. Additionally, for Ola to achieve a successful turnaround, it will be essential to maintain a robust cash reserve to navigate this period.

“However, as per our calculations, Ola has turned net debt as of 9MFY26 ( ₹6.7 bn) from net cash of ₹1.6 bn in H1FY26. Upside risk could stem from a strategic stake sale in the battery business, resulting in meaningful cash infusion,” said Emkay Global in its report.

Ola Electric Mobility share price today

Ola Electric Mobility share price today opened at ₹30 apiece on the BSE, the stock touched an intraday high of ₹30.01 per share and an intraday low of ₹28.73 per share.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Ola Electric Mobility share price today have seen a gap down opening and has broken its support of 30 levels.

“We are seeing a follow up selling and the underperformance is likely to continue in the near term. 26 is the next support whereas previous support around 30 is now the immediate resistance,” added Bhosale.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.