Goldman Sachs Ola Electric downgrade: Goldman Sachs has turned bearish on Ola Electric Mobility, cutting its rating to Sell and reducing its price target sharply, as mounting concerns over cash flow, funding requirements and operational challenges cloud the electric two-wheeler maker’s recovery prospects. The global investment bank has warned that the company faces a difficult path towards generating positive free cash flow, with high interest costs and substantial capital expenditure requirements adding to the pressure.
Goldman Sachs lowered its target price to ₹23 from ₹39.28, implying a downside of 23% from Ola Electric’s previous closing price of ₹29.93. The brokerage also reduced its revenue estimates for FY27 to FY29 by up to 10%, citing a tougher market-share environment and expectations of prolonged operating losses.
Goldman Sachs’ downgrade reflects growing concerns over Ola Electric’s growth prospects, financial sustainability and ability to navigate intensifying competition in the electric two-wheeler market.
According to Goldman Sachs, Ola Electric would need a substantial acceleration in revenue to cover its capital expenditure and interest servicing requirements. Revenue during FY28 to FY30 would need to reach 3.6 times to 7.1 times FY26 levels to meet these obligations, it highlighted.
The scale of the challenge is underscored by the company’s recent performance. Ola Electric’s revenue in FY26 was 55% lower than its FY24 level, making the growth required over the coming years particularly demanding.