Brokerages remain divided on Ola Electric’s future, with Goldman Sachs seeing potential turnaround while Emkay Global warns of ongoing challenges amid rising competition and market share pressures.
Brokerages remained sharply split on Ola Electric after its first-quarter update, with Goldman Sachs arguing the company could be nearing a turning point while Emkay Global kept a bearish view and warned the rebound in volumes may not last. According to the Business Today report, Goldman Sachs reiterated a buy recommendation and set a target of ₹40, even as Emkay held to a sell call and a ₹30 target.
The debate centres on whether the recent improvement in sales can withstand tougher competition. Emkay said Ola’s volume rose 93% sequentially, but noted that its electric two-wheeler market share increased to 8.3% in the first quarter from 5% in the previous quarter largely as established players such as TVS Motor, Bajaj Auto and Hero MotoCorp stepped up capacity. The brokerage also pointed to Ather Energy’s Auric plant, due to come on stream in the third quarter, as another factor likely to intensify pressure.
Emkay argued that Ola’s efforts to tighten execution, trim costs and rebuild its brand will take time to feed through, citing guidance for quarterly operating expenditure of ₹300 crore, down from ₹380 crore in the quarter ended March 2026. It said the company’s lower estimated earnings in fiscal 2027 and fiscal 2028 mainly reflect reduced operating costs and depreciation, but it still prefers to back the electric two-wheeler theme through Ather and TVS Motor rather than Ola.
The cautious tone from Emkay fits a wider pattern of scepticism from analysts over the past year. Goldman Sachs cut its target to ₹26 in February, downgrading the stock to neutral and warning that cash burn could force a fund-raise within 12 to 18 months, while Citi also maintained a sell rating and lowered its target to ₹22, citing market-share pressure and weak cash generation. Emkay had already trimmed its own target to ₹20 after Ola’s weaker fourth-quarter results, when revenue fell 57% from a year earlier and volume dropped 61%.
Even so, Goldman Sachs has also taken a more constructive stance at other points, lifting its target to ₹72 from ₹63 after Ola cut planned battery-cell investment and scaled back its 2030 manufacturing ambition. That broader split underscores how uncertain the investment case remains: one set of analysts sees scope for operating leverage if execution improves, while another believes the company still faces slower growth, heavier competition and a long road to profitability. Bloomberg consensus, as cited by Business Today, leaned negative overall, implying downside from the prevailing share price.
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