Ola Electric shares surge 7%. What’s triggering the sharp uptick in EV major?
A total of 6.87 crore shares changed hands during the session, with the traded value reaching Rs 270 crore, NSE data showed. The stock had declined more than 2% over the previous three sessions.
The buying interest comes days after Ola Electric announced that its first batch of dealer-led stores had gone live, within a month of opening its sales and service network to partners. The company said its first cohort of network-partner stores had started operations across Rajasthan, Tamil Nadu, Maharashtra, Bihar, Telangana, Uttar Pradesh and Madhya Pradesh.
The dealer-operated outlets are expected to strengthen Ola Electric’s presence across key regional markets and serve local demand for its scooters and motorcycles.
Ola Electric Q1 results
The EV-scooter maker reported a reduction in net losses to Rs 336 crore in Q1 FY27, down from Rs 428 crore in the same period last year, although revenue from operations fell 45% year-on-year.
Ola Electric reported the contraction of net losses, while revenue from operations fell to Rs 455 crore in the April-June quarter of the ongoing financial year 2027, down from Rs 828 crore reported in the corresponding quarter of the previous year. However, revenue surged 72% from the Rs 265 crore reported in the previous quarter (Q4 FY26).
The Bhavish Aggarwal-led company said Q1 was the first full quarter after its FY26 reset, during which it streamlined operations, tightened execution and lowered its operating cost base. Its orders rose to 44,071 units from 22,522 units in Q4 FY26, while deliveries increased to 39,192 units from 20,256 units.
Buy, sell or hold Ola shares?
Last month, after the Q1 results, Kotak Institutional Equities maintained its ‘Sell’ call on the stock with a target price of Rs 20 apiece, implying 46% downside potential. The brokerage noted that the company’s volume scale remains the critical hurdle.
If current volume trajectory does not improve, the company will be required to raise capital, Kotak said, adding that FCF outflow poses another challenge despite QIP.
Citi also maintained its ‘Sell’ call on the shares of Ola Electric, with a target price of Rs 26 apiece. Weaker volumes and lower gross margin was offset by cost control and PLI penalty reversal, it said.
Goldman Sachs has a ‘Neutral’ rating on the shares of Ola Electric with a target price of Rs 40 apiece, implying 8% upside potential. The company’s cash burn remains a concern, with FCF at negative Rs 3.5 billion and no material cell revenue expected in Q2, the international brokerage said.
(This article has been written by Veer Sharma, who is not a SEBI-registered Research Analyst or an Investment Adviser. Veer Sharma and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here)
