Ola Electric Mobility Ltd reported a narrowing of year-on-year (YoY) losses in the March quarter results. While a couple of brokearges have revised upward their target prices on the Bengaluru-based Indian electric vehicle manufacturer, they retained 'Sell' or 'Reduce' on the stock, with targets suggesting up to 32 per cent potential downside. Citi has maintained its 'Sell' on the stock but revised upward its target to Rs 26 from Rs 22 earlier. This brokerage had turned negative on the stock earlier in February 2026. HSBC has suggested a 'Reduce' on the stock, with a lower target of Rs 33 from Rs 45 earlier. Emkay Global retained its 'Sell' call with a revised target of Rs 25 from Rs 20 earlier.  Ola Electric shares settled at Rs 36.50 apiece on Wednesday.

Emkay Global said Ola logged weak Q4, with revenue down 57 per cent YoY on volume drop of 61 per cent YoY. Ola Electric's gross margin (GM) rose 424 bps QoQ to 38.5 per cent, aided by PLI accrual for Gen3. 

Ebitda margin losses expanded to 106 per cent from 58 per cent in Q3. 

Emkay Global said the underlying E2W theme is strong and the industry is seeing healthy growth, with uptick in penetration following a dip due to recent GST cuts. 

"While Ola has seen some sequential volume improvement and market share, we attribute the volume growth to the currently better placed production capacity, share gains in the more price-sensitive northern markets, and E-2W incumbents/Ather operating at peak utilization amid strong E-2W demand," Emkay said.

The brokerage said Ola Electric is adopting several measures to improve execution, cut costs or conserve cash and improve brand perception. This could be a difficult, long-drawn-out process, especially due to greater focus by incumbents and scale-up at Ather, Emkay Global said.

"Additionally, new capacities coming onstream for incumbents/Ather in H2FY26 would reintroduce competition in the industry structure. Given the current dynamics, Ola’s recovery in volume and market share remains monitorable. We increase FY27E volume by 10 per cent, given the strong momentum in the underlying E-2W industry," Emkay said. 

This brokerage preferred to play the E2W theme with Ather and TVS Motor.