Ola Electric Mobility share price jumped as much as 12% in intraday trade on the BSE on Wednesday, 23 September, looking set to extend gains for the third consecutive session.
Ola Electric shares opened at ₹38.16 against their previous close of ₹37.78 and jumped 12% to an intraday high of ₹42.32, with a spurt in volume by nearly 4 times.
The stock has been on an uptrend lately. BSE data show the company’s shares have surged nearly 80% over the last six months, defying stock market volatility.
Ola shares hit their 52-week high of ₹59.20 on 23 September last year and a 52-week low of ₹21.21 on 2 March this year. Year-to-date, the stock is up nearly 12%.
What is driving the stock?
The stock has been on an uptrend due to new product launches, news flows related to its business expansion, and anticipation of healthy growth in the electric two-wheeler segment.
The company recently launched its first batch of dealer-led stores, just a month after opening its sales and service network to partners. The company said its initial network-partner stores had commenced operations across Rajasthan, Tamil Nadu, Maharashtra, Bihar, Telangana, Uttar Pradesh and Madhya Pradesh.
According to the global financial firm Nomura, electric two-wheeler penetration is rising faster than previously anticipated, driven by improved product offerings, growing consumer acceptance, favourable total cost of ownership (TCO), and supportive government policies.
“Ola Electric’s stock rally has been driven by expectations around EV growth, battery localisation and business expansion. However, further valuation re-rating will depend on execution and financial improvement,” said Vinit Bolinjkar, the head of research at Ventura.
Meanwhile, Ola’s consolidated revenue fell 45% to ₹455 crore while net loss narrowed to ₹336 crore from ₹428 crore a year earlier for the quarter ended 30 June 2026. Its cash flow from operations dropped to negative ₹215 crore after reporting a positive cash flow of ₹91 crore in the March quarter.
Nitant Darekar, a research analyst at Bonanza, underscored that the nearly 80% rally from the March low of ₹22.25 reflects a turnaround story rather than a recovery in earnings.
“Q1FY27 revenue fell 45% year-on-year (YoY) to ₹455 crore but rose 72% quarter-on-quarter (QoQ), as market share recovered to 8.4% from 5.1%. Gross margin held at 30.5% despite commodity inflation. The main triggers are the Gigafactory expansion from 2.5 GWh to 6 GWh, merchant cell sales, and a ₹1,500 crore fundraise to enable resolution. With an adjusted EBITDA loss of ₹195 crore, breakeven depends on volumes continuing to grow,” Darekar noted.
What should investors do?
Bolinjkar underscored that dealer-led expansion, indigenous battery cells and new products are strengthening the turnaround narrative, but weak revenue growth, continued losses and cash burn remain key monitorables.
“Ola Electric’s recent share-price recovery reflects a market increasingly focused on its future operating potential rather than its current earnings profile. Distribution expansion, new products and battery localisation have strengthened the turnaround narrative, while recent developments around the Gigafactory and Bharat Cell provide tangible milestones for the strategy,” said Bolinjkar.
“The central financial question remains whether these investments can translate into higher volumes, stronger unit economics and sustainable profitability. The company’s ability to reduce cash burn while scaling its manufacturing and distribution ecosystem will therefore be critical to the next phase of its investment story,” Bolinjkar said.
The stock is enjoying a bullish momentum at this juncture. However, technical experts suggest waiting for a breakout from the congestion zone it has been in since July before initiating fresh buying.
Vipin Kumar, AVP-Research at Globe Capital Market, said Ola Electric has been experiencing congestion in the ₹36– ₹43 range since the start of July 2026.
At the current juncture, it is trading on the verge of a fresh breakout from this congestion zone.
“A breakout and sustenance above ₹43 could lead the stock toward the ₹50 level in the near term. Hence, we suggest that traders hold existing long positions and add fresh ones above ₹43, with an immediate target of ₹50,” said Kumar.
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Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
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