Ola Electric shares tank 6%, extend two day fall to 14%; Goldman Sach up price target

Shares of Ola Electric Mobility continued to bleed on Friday, extending the weakness for the second straight session, despite some positive brokerage reports. The stock has posted double digit cuts in the last two days even as the GST cut boost failed to lift the sentiments for the counter.

In the early trade, shares of Ola Electric Mobility tanked another 6.02 per cent to Rs 60.70 on Friday, with its market capitalization slipping below Rs 27,000 crore mark. The stock had settled at Rs 64.59 on Thursday, falling nearly 7 per cent. The two day fall in the stock has wiped out nearly 14 per cent of value in just two days.

The stock remained under pressure on Friday as SoftBank entity, SVF II Ostrich (DE) LLC, offloaded a portion of its holding in the company. In a disclosure, It said that it sold 94,943,459 equity shares of Ola Electric between July 15, 2025, and September 2, 2025. Japan's SoftBank Group has sold a 2.15 per cent stake in the Indian electric scooter maker, reducing its holding to 15.68 per cent.

Shares of Ola Electric had surged nearly 75 per cent from its 52-week low at Rs 39.58, hit on July 14, 2025. The stock has gained more than 50 per cent in the last one month, despite this selling pressure. However, it is down 50 per cent from its 52-week high at Rs 123.90, hit in September 2024.

Overseas Brokerage firm Goldman Sachs has maintained its 'buy' call on Ola Electric while raising the target price to Rs 72 (from Rs 63 earlier), noting that the company is recalibrating its growth strategy with a more measured investment approach.

Goldman Sachs said the combination of strategic battery localisation, PLI benefits, and a refreshed product pipeline reinforces Ola Electric’s long-term growth case, even as its manufacturing targets are scaled back for now. Ola has revised its battery cell manufacturing ambition to 5 GWh capacity, down from its original 20 GWh target by 2030, it noted.

To recall, Ola raised a total of Rs 6,145.56 crore via its IPO, which was launched in August 2025. The company sold its shares of Rs 76 apiece, with a lot size of 195 equity shares. The stock is currently 20 per cent down from its IPO price.

The Bhavish Aggarwal-led firm recently received certification for compliance with the eligibility assessment requirements under the Production Linked Incentive (PLI) scheme for its Gen 3 scooter portfolio. It also unveiled its first indigenously manufactured 4680 Bharat cell battery and a rare earth metal-free motor at its annual 'Sankalp' event held at its Gigafactory in Tamil Nadu.

Incorporated in 2017, Bengaluru-based Ola Electric manufactures electric two-wheelers and key components such as battery packs, motors and frames at its Ola Futurefactory. As of June 2025, promoters held a 36.78 per cent stake in the new-age electronic two-wheeler maker.

Ola Electric reported 1QFY26 EBITDA loss, lower than expectation, said Kotak Institutional Equities post Q1 results. Gross margins came in 380 bps above estimates, driven primarily by Gen 3 BOM reduction as a result of focus on vertical integration and in-house technology, it said.

"In terms of volumes, the company has guided for sales of 325-375k units in FY2026E; however, we believe the company will find it difficult to reach its volume targets, and we are baking in 310k units in FY2026E," it added with 'sell' rating and a target price of Rs 30 apiece.