Highlights
- Ola Electric posted a consolidated gross margin of 34.3% in Q3 FY26, up 15.7 percentage points year-on-year.
- Quarterly operating expenditure declined to ₹484 crore from a peak of ₹840 crore in Q4 FY25.
- The stock has fallen 52.64% in one year, with a sell rating and ₹25 target from Ambit Capital.
Shares of Ola Electric Mobility Limited (NSE:OLAELEC) are trading at ₹29.03 on February 16, down 6.02% for the day, 22.05% over the past month and 52.64% over the past year. Today’s stock movement follows the company’s Q3 FY26 results announcement on February 13, 2026, where it reported record gross margins and outlined a structural reset of its operating model. Adding to the debate, Ambit Capital Pvt Ltd has issued a sell rating with a target price of ₹25.
Record Margins Amid Revenue Update
For the quarter ended December 31, 2025, Ola Electric reported consolidated revenue from operations of ₹470 crore, with total electric two-wheeler deliveries of 32,680 units in Q3 FY26.
The company achieved a consolidated gross margin of 34.3%, compared to 30.9% in Q2 FY26 and 18.6% in Q3 FY25. Management attributed the improvement to its vertically integrated manufacturing model and Gen 3 platform economics. The quarter also marked PLI certification for the entire Gen 3 portfolio.
Cost Reset and Breakeven Shift
Ola Electric undertook operational changes during the quarter, including store and service network optimisation and AI-led automation. Quarterly consolidated operating expenses were reduced to ₹484 crore in Q3 FY26 from ₹840 crore in Q4 FY25. The company has outlined a roadmap to bring quarterly opex down to ₹250–300 crore over the next couple of quarters.
The EBITDA breakeven level has been reset to approximately 15,000 units per month. The company stated that its current manufacturing footprint can support three to four times volume scaling with limited incremental fixed costs.
Service Metrics and Gigafactory Progress
Service backlog has declined by around 50% from peak levels, with approximately 80% of service requests now completed on the same day. The company’s Hyperservice programme includes technician expansion, parts availability improvements and AI-enabled diagnostics.
During Q3 FY26, the Gigafactory doubled cell production quarter-on-quarter to 72,418 cells. The company deployed its in-house 4680 Bharat Cells into customer vehicles for the first time and launched Ola Shakti, a residential Battery Energy Storage System product. Installed capacity stands at around 2.5 GWh, with plans to scale to 6 GWh by March 2026.
Market Performance and Broker Call
Despite operational updates, Ola Electric shares have declined sharply over the past year. The stock is down 22.05% in one month and over 52% in 12 months.
Ambit Capital Pvt Ltd has issued a sell rating with a target price of ₹25, below the current market price of ₹29.03.
Ola Electric’s Q3 FY26 update highlighted higher gross margins, reduced operating costs and progress at its Gigafactory. However, the stock continues to trade significantly lower year-on-year, with recent monthly declines and a sell call from Ambit Capital adding to investor focus. As cost resets and volume targets unfold over the coming quarters, market participants are tracking execution against guidance and share price levels.
F&Q
- Why is Ola Electric’s share price falling?
The stock has declined 52.64% over the past year and 22.05% in the last month despite reporting higher gross margins in Q3 FY26. - What were Ola Electric’s key Q3 FY26 numbers?
The company reported ₹470 crore in revenue, 32,680 vehicle deliveries and a consolidated gross margin of 34.3%. - What is the latest broker rating on Ola Electric?
Ambit Capital Pvt Ltd has issued a sell rating with a target price of ₹25.