Ola Electric Shares Fall Over 6% After Goldman Sachs Downgrades Stock to Sell

The stock touched an intraday low of ₹29.86 on the BSE, declining as much as 6.5 per cent after opening more than 2 per cent lower at ₹31.50.

Goldman Sachs cut its price target to ₹23 from ₹39.28, pointing to growing uncertainty over the company's ability to achieve sustainable free cash flow generation amid high interest costs and capital expenditure requirements across its battery cell and electric two-wheeler businesses.

According to the brokerage, these financial demands come as Ola Electric faces the prospect of an extended period of operating losses if its market share remains at current levels.

The analysts estimated that, to meet its capital expenditure and interest servicing requirements, the company's revenue between FY28 and FY30 would need to reach 3.6 to 7.1 times its FY26 level.

The scale of the challenge is underscored by the company's financial performance, with revenue declining 55 per cent in FY26 compared with FY24, according to the report.

Goldman Sachs also flagged potential operational challenges in Ola Electric's battery cell business following the recent departure of its head.

The brokerage lowered its revenue estimates for FY27 to FY29 by up to 10 per cent, reflecting expectations of a more challenging market-share environment compared with other electric two-wheeler manufacturers.

However, Goldman Sachs said its outlook could improve if the company's shift towards dealer-led sales and servicing helps revive its electric two-wheeler business and strengthen consumer sentiment towards the brand.

Ola Electric's shares have declined more than 40 per cent over the past 12 months and are down around 16 per cent so far in 2026, reflecting sustained pressure on the stock.