Earnings Release: Here's Why Analysts Cut Their Ola Electric Mobility Limited (NSE:OLAELEC) Price Target To ₹46.71

Ola Electric Mobility Limited (NSE:OLAELEC) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues were better than expected, with ₹8.3b in revenue some 13% ahead of forecasts. The company still lost ₹0.97 per share, although the losses were marginally smaller than the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the most recent consensus for Ola Electric Mobility from seven analysts is for revenues of ₹42.1b in 2026. If met, it would imply a notable 14% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 40% to ₹3.20. Before this earnings announcement, the analysts had been modelling revenues of ₹41.9b and losses of ₹3.51 per share in 2026. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

Check out our latest analysis for Ola Electric Mobility

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 14% to ₹46.71. It looks likethe analysts have become less optimistic about the overall business. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Ola Electric Mobility analyst has a price target of ₹63.00 per share, while the most pessimistic values it at ₹30.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that Ola Electric Mobility is forecast to grow faster in the future than it has in the past, with revenues expected to display 19% annualised growth until the end of 2026. If achieved, this would be a much better result than the 32% annual decline over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.4% per year. Not only are Ola Electric Mobility's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Ola Electric Mobility's future valuation.

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.

And what about risks? Every company has them, and we've spotted 2 warning signs for Ola Electric Mobility you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.