23-Oct-2026 07:41:09
GS on Ola Electric | Downgrade to Sell, TP cut to Rs 23
More cautious view on 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) need to achieve 3.6x to 7.1x higher topline vs FY26 over FY28E to FY30E (in order to cover current capex and interest servicing requirements) compared to FY26 over FY24 performance where topline was 55% lower; (3) Possible operating challenges in the battery cell business after the recent departure of the Battery business head Cut our FY27 to FY29 revenue estimates by up to -10%, to reflect a more challenging market share environment for Ola Electric vs 2W peers Could get more constructive if 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 3) acceleration in Cell business customer wins and profitability. More details within
OLA ELECTRIC MOBILITY LTD