Kotak Institutional Equities has downgraded Ola Electric to ‘Sell’ from ‘Add’, while slashing its target price to ₹30 from previous levels. The downgrade follows a weaker-than-expected Q4FY25 performance and growing operational concerns.
According to Kotak, Ola Electric’s Q4 EBITDA loss was significantly higher than estimates, largely due to elevated warranty provisions and weaker volume performance. For FY2025, the company also reported a steep free cash flow (FCF) outflow of ₹35 billion, highlighting ongoing cash burn challenges.
Kotak expects EBITDA losses to persist in the near term, citing deteriorating brand equity and intensifying competition in the electric two-wheeler market. The brokerage notes that Ola Electric’s future growth now critically depends on its ability to scale volumes and the success of its motorcycle foray — both of which face execution and credibility risks.
The stock was last trading at ₹53.20.
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