Ola Electric and Ather Energy shares saw a significant rally in Thursday’s trading session amid stock market rally. Ola Electric share price gained as much as 7.5%, touching an intraday high of ₹40.51 per share on NSE. Meanwhile, Ather Energy share price rallied nearly over 4% to ₹1,648.60 on 10 September.
Meanwhile, Indian benchmark indices opened higher on Thursday. The BSE Sensex was trading at 74,832.29, gaining 68.06 points, or 0.09%. Meanwhile, the broader NSE Nifty 50 stood at 23,446.60, up 15.10 points, or 0.06%.
What’s behind the rally?
Ola Electric share price gained momentum as investors stepped in for value buying following a three-session decline in the stock.
As many as 6.87 crore shares were traded during the session, with the total traded value standing at ₹270 crore, according to NSE data. The stock had dropped more than 2% over the previous three trading sessions.
The buying interest comes days after Ola Electric announced the launch of 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.
The dealer-operated outlets are likely to expand Ola Electric’s footprint in key regional markets while catering to local demand for its scooters and motorcycles.
Meanwhile, Ather Energy share price after global brokerage Nomura raised its target price for the electric two-wheeler manufacturer while maintaining its bullish stance on the stock.
Nomura retained its ‘Buy’ rating on Ather Energy and increased the target price to ₹1,926 per share from ₹1,714 earlier. The brokerage has valued the company at 5.5x FY29F EV/sales.
Ather Energy continues to be Nomura’s top pick in the two-wheeler segment, with the brokerage expecting faster EV adoption to further improve the company’s growth prospects.
According to Nomura, electric two-wheeler penetration is rising faster than previously anticipated, driven by better product offerings, increasing consumer acceptance, favourable total cost of ownership (TCO), and supportive government policies.
“Along with strong growth, Ather’s premium positioning keeps long-term margin potential in the range of 15-20%, in our view. Hence, we believe Ather’s premium valuation at 5-7x EV/sales should sustain,” Nomura said.
Meanwhile, Seema Srivastava, Senior Research Analyst at SMC Global Securities, believes that the recent positive momentum in Ola Electric and Ather Energy shares is driven by broad EV sector tailwinds—such as India’s electric two-wheeler penetration crossing 11%—coupled with encouraging Q1 FY27 financial reports.
Srivastava further explained that Ather Energy rallied after reporting an 87% surge in revenue to ₹1,260 crore, a 72% reduction in standalone net losses down to ₹51.09 crore, and positive EBITDA, fueled by strong demand for the Rizta scooter and improved operating efficiency. Meanwhile, Ola Electric caught investor attention as its Q1 FY27 financial results reflected a sequential volume recovery and narrowed net losses of ₹336 crore, supported by aggressive retail expansion.
“Looking ahead, both companies offer strong long-term investment prospects tied to India’s green mobility transition, though their strategies differ. Ather’s long-term outlook is anchored by upcoming capacity expansions like Factory 3.0 and mass-market platform rollouts, making it a steady structural play on improving operating leverage, whereas Ola Electric relies on a high-risk, high-reward vertical integration model—scaling its in-house cell giga factory and electric motorcycle lineup—to structurally slash battery costs and capture long-term margins, though investors must navigate intense competition and execution volatility,” she added.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
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