Ola shares: Goldman Sachs cuts rating to 'Sell', sees 28% downside; here's consensus target
Ola Electric has seven 'Sell' calls, one 'Hold' and no 'Buy' calls. The 12-month Bloomberg consensus target price stands at Rs 26.23, implying a potential downside of 17.9 per cent.
- Oct 23, 2026,
- Updated Oct 23, 2026 9:13 AM IST
Global investment bank Goldman Sachs has downgraded Ola Electric Mobility Ltd to 'Sell' from 'Neutral' and cut its target price to Rs 23 per share from Rs 39.28 apiece, citing a challenging path to free cash flow amid high interest costs, capex needs and prolonged operating losses. The revised target price by analyst Chandramouli Muthiah implied a potential downside of 28 per cent from Thursday's closing price of Rs 31.94.
"Our more cautious view on the stock is based on (1) More challenging path to free cash flow given relatively high interest cost and capex needs of the cell and E2W business, during a more extended period of estimated operational losses at current market share levels; (2) the need to achieve 3.6 times to 7.1 times higher topline vs FY26 over FY28E to FY30E; (3) possible operating challenges in the battery cell business after the recent departure of the Battery business head," Goldman Sachs said.
With the latest downgrade, Ola Electric has seven 'Sell' calls, one 'Hold' and no 'Buy' calls. The 12-month Bloomberg consensus target price stands at Rs 26.23, implying a potential downside of 17.9 per cent.
Earlier this month, HSBC's Yogesh Aggarwal assigned a 'Reduce' rating to the stock with a target price of Rs 23.57 per share. Investec's Shubham Jain has a 'Hold' rating and a target price of Rs 34.37, while Ambit Capital's Sushrut Ghalsasi has a 'Sell' rating and a target price of Rs 28.48.
Goldman Sachs has cut its FY27-FY29 revenue estimates for Ola by up to 10 per cent, factoring in the challenging market-share environment for Ola Electric compared with other two-wheeler peers.
Goldman Sachs said Ola Electric would need to scale up its topline 3.6 times to 7.1 times over FY26 levels by FY28-FY30 to cover current capex and interest servicing requirements. This compares with a 55 per cent decline in topline in FY26 versus FY24.
The brokerage also flagged potential operating challenges in the battery cell business following the recent departure of its business head.
"We could get more constructive if we were to see: 1) a revival in the E2W business from a shift to dealer led selling / servicing model potentially improving Ola's currently weak brand sentiment; 2) positive operating Ebitda margin at consol level; and 3) acceleration in Cell business customer wins and profitability," Goldman Sachs said.
Global investment bank Goldman Sachs has downgraded Ola Electric Mobility Ltd to 'Sell' from 'Neutral' and cut its target price to Rs 23 per share from Rs 39.28 apiece, citing a challenging path to free cash flow amid high interest costs, capex needs and prolonged operating losses. The revised target price by analyst Chandramouli Muthiah implied a potential downside of 28 per cent from Thursday's closing price of Rs 31.94.
"Our more cautious view on the stock is based on (1) More challenging path to free cash flow given relatively high interest cost and capex needs of the cell and E2W business, during a more extended period of estimated operational losses at current market share levels; (2) the need to achieve 3.6 times to 7.1 times higher topline vs FY26 over FY28E to FY30E; (3) possible operating challenges in the battery cell business after the recent departure of the Battery business head," Goldman Sachs said.
With the latest downgrade, Ola Electric has seven 'Sell' calls, one 'Hold' and no 'Buy' calls. The 12-month Bloomberg consensus target price stands at Rs 26.23, implying a potential downside of 17.9 per cent.
Earlier this month, HSBC's Yogesh Aggarwal assigned a 'Reduce' rating to the stock with a target price of Rs 23.57 per share. Investec's Shubham Jain has a 'Hold' rating and a target price of Rs 34.37, while Ambit Capital's Sushrut Ghalsasi has a 'Sell' rating and a target price of Rs 28.48.
Goldman Sachs has cut its FY27-FY29 revenue estimates for Ola by up to 10 per cent, factoring in the challenging market-share environment for Ola Electric compared with other two-wheeler peers.
Goldman Sachs said Ola Electric would need to scale up its topline 3.6 times to 7.1 times over FY26 levels by FY28-FY30 to cover current capex and interest servicing requirements. This compares with a 55 per cent decline in topline in FY26 versus FY24.
The brokerage also flagged potential operating challenges in the battery cell business following the recent departure of its business head.
"We could get more constructive if we were to see: 1) a revival in the E2W business from a shift to dealer led selling / servicing model potentially improving Ola's currently weak brand sentiment; 2) positive operating Ebitda margin at consol level; and 3) acceleration in Cell business customer wins and profitability," Goldman Sachs said.