Shares of Ola Electric Mobility Ltd experienced a significant surge of almost 20% on Thursday, reaching a closing price of Rs 36.34 on the BSE. This surge was driven by early indications of a demand recovery following a prolonged period of decline. The stock has shown a remarkable increase of approximately 25% in April, marking a notable turnaround after six consecutive months of losses. The boost in sentiment was sparked by a positive shift in March sales figures.
According to Abhinav Tiwari, a Research Analyst at Bonanza, the sharp rise in Ola Electric shares reflects the market’s response to the first visible signs of potential stabilization in demand after a period of disappointment. Vehicle registrations surged to around 10,117 units in March from 3,973 units in February, with daily orders reportedly exceeding 1,000 units in the final week of the month, instilling confidence in the market regarding the resilience of demand.
Despite the impressive rebound, analysts remain cautious about declaring the complete reversal of the situation. Tiwari emphasized that it might be premature to assert that the worst is entirely behind, citing concerns over the stock’s prolonged decline driven by weak volumes, declining market share, substantial cash burn, widening losses, and operational challenges.
The company’s financial performance continues to reflect these challenges, with revenue of approximately Rs 470 crore reported in Q3 FY26, alongside a widened net loss of around Rs 487 crore. The recent volume recovery has been supported by aggressive pricing strategies aimed at regaining lost market share, particularly in the price-sensitive electric two-wheeler market. However, the sustainability of this approach raises questions around margins and profitability.
Tiwari advised investors to adopt a cautious stance and recommended waiting for additional sales data over the next one or two months to confirm a sustained recovery trend. While the recent rally signifies an improvement in sentiment, the company’s fundamental aspects, including demand consistency, operational execution, and a clear path to profitability, need to align for a lasting recovery to materialize.