Ola Electric Mobility's September-quarter report shows the pressures around its Indian retail reset: revenue fell 39% year over year, and brokerage reports said analysts cut targets after the release.
The board approved the unaudited consolidated results on Nov. 12. Revenue from operations was ₹421 crore (₹4.21 billion) for the three months ended Sept. 30, down from ₹690 crore (₹6.9 billion) a year earlier. The company posted a net loss of ₹362 crore (₹3.62 billion), compared with ₹418 crore a year ago and ₹336 crore in the June quarter.
Ola's investor-relations page lists 34,667 deliveries in the quarter and a consolidated gross margin of 29.9%.
NDTV Profit reported that Goldman Sachs lowered its price target to ₹22 from ₹23 and Kotak Institutional Equities cut its target to ₹18. Business Today also reported ₹18 as Kotak's current target.
In NDTV Profit's account of Goldman Sachs' analysis, the shift to dealers could reduce gross margin by more than 650 basis points. The report said Goldman expected ₹500 million in fixed-cost savings to offset part of that impact and reduced its fiscal 2027-29 revenue estimates by up to 6%.
NDTV Profit also reported that Kotak saw sustained monthly volumes of 25,000 vehicles as necessary for cash breakeven. It said the brokerage viewed quarterly free-cash outflows of ₹3.5 billion as a liquidity risk.
Reuters reported in October that Goldman Sachs cut its rating on Ola to Sell from Neutral and lowered its target to ₹23 from ₹39.28. EconoTimes covered the October downgrade.
Ola said it had 255 dealer partners operating 319 stores as of Nov. 8, with a goal of 700 by March 2027. The company stopped taking orders through its direct-to-consumer stores on Nov. 1 and expects most to close by December, reducing operating expenses by a further ₹50 crore. Its December production target is 25,000 vehicles, a separate measure from Kotak's reported monthly sales volume estimate for cash breakeven.
