Ola Electric stock falls 6% after Goldman Sachs downgrade
Ola Electric's shares dropped sharply following a Goldman Sachs downgrade to 'Sell' and a ₹1,000 crore rights issue.
Ola Electric's stock decline continued on October 23, 2026, after a Goldman Sachs downgrade. Shares ended the day 6.39% lower at ₹29.90 on the BSE, with the market capitalisation standing at ₹14,946.06 crore ($1.58 billion). The stock is now trading 61% below its listing price of ₹76 and has declined around 17% so far this year.
This marked a potential sixth consecutive session of losses for the electric vehicle startup. The stock lost over 20% of its value in the past month alone. Earlier in the day, shares had declined as much as 4%, trading at ₹30.64.
Financial performance and loss reduction
Recent quarterly results showed a mixed financial picture. Ola Electric trimmed its net loss by 22% to ₹336 crore in the first quarter of FY27, down from ₹428 crore in the same period the previous year. However, operating revenue saw a steep decline of 45%, falling to ₹455 crore from ₹828 crore a year earlier.
This follows a broader revenue contraction. The company's revenue declined 55% between FY24 and FY26.
Analyst sentiment and rating pressure
Analyst outlook on the stock is overwhelmingly negative. All eight analysts covering Ola Electric Mobility hold either 'Sell' or 'Hold' ratings. Seven analysts have assigned a 'Sell' rating, while only one maintains a 'Hold' position. There are no 'Buy' ratings.
Goldman Sachs cut its revenue estimates for Ola Electric for FY27 through FY29 by up to 10%. The investment bank downgraded the stock to 'Sell' from its previous rating and slashed its price target to ₹23.
Rights issue details and capital allocation
The downgrade came after Ola Electric opened a ₹1,000 crore rights issue. The company outlined specific plans for the capital raised.
| Purpose | Allocation (₹ Cr) |
|---|---|
| Debt repayment | 350 |
| Organic growth in electric mobility and energy storage | 400 |
To fund his participation in this rights issue, founder Bhavish Aggarwal pledged a 4.32% stake in the company.
Operational challenges and outlook
Operational hurdles are adding to the financial strain. The recent departure of the head of Ola Electric's battery-cell business may cause further challenges for this critical division.
Goldman Sachs expects operational losses to persist. This makes it challenging for the company to achieve positive free cash flow in the near term. Analysts project that Ola Electric would need to generate between 3.6 and 7.1 times its FY26 revenue over the FY28 to FY30 period just to cover its capital expenditure and interest payments.
