Analysts Have Lowered Expectations For Ola Electric Mobility Limited (NSE:OLAELEC) After Its Latest Results

Ola Electric Mobility Limited (NSE:OLAELEC) shareholders are probably feeling a little disappointed, since its shares fell 7.2% to ₹46.55 in the week after its latest quarterly results. The results overall were pretty much dead in line with analyst forecasts; revenues were ₹6.9b and statutory losses were ₹0.95 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Ola Electric Mobility's eight analysts currently expect revenues in 2026 to be ₹31.0b, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 29% to ₹3.69. Yet prior to the latest earnings, the analysts had been forecasting revenues of ₹36.6b and losses of ₹3.29 per share in 2026. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

See our latest analysis for Ola Electric Mobility

The average price target was broadly unchanged at ₹47.75, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Ola Electric Mobility analyst has a price target of ₹65.00 per share, while the most pessimistic values it at ₹25.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would also point out that the forecast 2.4% annualised revenue decline to the end of 2026 is better than the historical trend, which saw revenues shrink 46% annually over the past year Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 9.0% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Ola Electric Mobility to suffer worse than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Ola Electric Mobility. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹47.75, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Ola Electric Mobility going out to 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Ola Electric Mobility (1 can't be ignored!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.