Market Brief: Ola Electric Strategic Pivot **Network Consolidation and Retail Reset** Ola Electric is aggressively scaling back its physical footprint as part of a "structural reset." The company aims to reduce its store network to approximately **550 outlets** by the end of March 2026. This is a significant reversal from earlier ambitions to reach 4,000 locations. Currently operating about 700 stores, the planned closure of another **150 sites** is intended to align costs with a cooling demand environment and a "leaner" operating model. **Financial Performance and Revenue Contraction** Latest Q3 FY26 results highlight severe operational pressure. Revenue from operations plummeted **55% year-on-year** to **₹470 crore**, down from ₹1,045 crore in the same period last year. Despite the top-line slide, net losses narrowed slightly to **₹487 crore** (from ₹564 crore), aided by a **43% reduction** in total expenses. Gross margins improved to **34.3%**, supported by vertical integration and the new Gen 3 platform. **Market Share Erosion** The company’s dominance in the electric two-wheeler segment has faded. Market share, which stood at **26%** a year ago, fell to **6.3%** in January 2026. Preliminary data for February 2026 indicates a further drop to approximately **4.2%**, placing Ola behind legacy players like TVS Motor (**28%**) and Bajaj Auto (**21%**), and even startup rival Ather Energy. **Volume and Delivery Metrics** Vehicle deliveries for the quarter ended December 31, 2025, totaled **32,680 units**, representing a **61% decline** compared to the previous year. To achieve EBITDA breakeven, management estimates a requirement of **15,000 units** per month. However, current monthly registration averages remain below this threshold, with February mid-month figures showing just **2,252 units** sold. **Stock Market Dynamics** The stock remains under heavy pressure, recently hitting a 52-week low of **₹28.71** before fluctuating around the **₹26–₹27** range. While recent trading sessions saw a massive volume surge of over **4.4 crore shares** suggesting potential accumulation, the technical outlook remains bearish. The stock is currently trading nearly **65% below** its post-listing peak, with a market capitalization stabilizing around **₹11,700–₹12,300 crore**. **Operational Outlook** The "Hyperservice" program is the primary internal focus to resolve brand trust issues. The company reports that **80% of service tickets** are now closed within the same day. Simultaneously, the Gigafactory is scaling toward **6 GWh** of installed capacity by March 2026 to deepen vertical integration and lower long-term unit costs.