Electric two-wheeler ’s shares have come under renewed selling pressure in recent weeks, wiping out much of the gains from their recent peak.
The enthusiasm among shareholders, which had briefly brightened after the September rally, has proved short-lived as the stock slips back into its earlier bearish trajectory, reminding investors that the road to sustained gains may still be a bumpy one.
After reaching a 52-week high of ₹71.25 apiece in early September, the shares slipped into a selling phase, with the decline deepening further following the release of the company’s September-quarter results.
In today’s session (November 11) as well, the stock slid another 3% to ₹42 apiece, the lowest level since mid-August, and has now lost 41% of its value from the September highs, taking the year-to-date decline to 50%.
Revenue guidance cut accelerates sell-off
Though the company reported improved performance in the September quarter, with net loss narrowing to ₹418 crore in Q2FY26 from ₹495 crore in the year-ago quarter, it slashed its full-year sales and revenue targets, warning of weaker demand in the remainder of the fiscal year.
The electric two-wheeler major trimmed its second-half sales expectations to about 100,000 vehicles, bringing its full-year estimate to roughly 221,000 units, more than 40% below its earlier projection of 325,000–375,000, according to a letter to shareholders.
The company’s sales nearly halved to 52,666 units in the second quarter from a year earlier. Revenue for the full year ending March 31 is now guided at ₹3,000 crore to ₹3,200 crore, down from a prior forecast of ₹4,200 crore to ₹4,700 crore issued in the first quarter of FY26.
The lower sales forecast by the company can be attributed to rising competition in the electric two-wheeler market, where it has been losing its position as India’s top-selling electric two-wheeler maker in recent months to rivals Bajaj Auto Ltd. and TVS Motor Co., while listed peer Ather Energy has been rapidly gaining market share.
Though the company cut its sales forecast, it maintained its margin forecast for the core automotive business as it shifts focus to profitability over volumes amid rising competition, betting that growth in its energy storage business will cushion the slowdown in vehicle sales.
In October, Ola launched its first residential Battery Energy Storage System (BESS), Ola Shakti, marking a shift beyond the automotive domain.
Analysts warn of deeper downside if key support breaks
Anshul Jain, Head of Research at Lakshmishree, said, “Ola Electric is trading dangerously close to its crucial support zone between ₹39 and ₹42. The stock has been under tremendous bearish pressure, with weak momentum and consistent selling at higher levels. A decisive breakdown below ₹39 could open the gates for a swift fall towards the ₹30 zone, where the next major support lies.”
“Until the stock reclaims ₹45 with strong volumes, the trend remains weak and sentiment cautious. Traders should stay alert; a technical breakdown from here could trigger sharp short-term downside, making this a key chart to watch in the sessions ahead,” he further added.
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