Ola Electric Soars Over 30% In 5 Days: What Should Investors Do Now?

Last Updated:September 01, 2025, 15:26 IST

Shares of Ola Electric Mobility jumped 13% on Monday extending their five-day surge to nearly 30%

Ola S1 Gen 3 scooter portfolio. (Photo: Ola Electric)

Ola Electric Share Price: Shares of Ola Electric Mobility jumped 15% on Monday to Rs 61.14 on the BSE, extending their five-day surge to nearly 30%. The rally comes after the company secured Production Linked Incentive (PLI) certification for its Gen 3 scooters — a move management says will improve margins and speed up the path to profitability.

PLI Boost for Margins

The Automotive Research Association of India approved Ola under the Ministry of Heavy Industries’ scheme, making its Gen 3 S1 lineup eligible for 13–18% sales incentives until 2028. Together, these seven scooter models account for more than half of Ola’s current volumes. With both Gen 2 and Gen 3 now certified, Ola expects profitability gains from Q2FY26 and aims to move closer to EBITDA positivity.

Analysts’ Take

Mandar Bhojane of Choice Broking noted Ola’s breakout from a falling channel, highlighting support at Rs 50–52 and resistance at Rs 62–70. INVasset PMS’s Anirudh Garg called the surge a “technical shift,” but cautioned that the stock’s RSI near 70 signals short-term overheating.

Financial Picture

Despite the rally, Ola’s fundamentals remain weak. It reported a Q1 net loss of Rs 428 crore, with revenues halving year-on-year to ₹828 crore, though margins improved to 25.6%. At its AGM, the company won shareholder approval to reallocate IPO funds and extend deployment timelines.

Industry Headwinds and Growth Plans

The EV sector continues to face supply chain challenges, especially rare earth constraints from China’s export curbs. Ola said it is accelerating work on motors without rare earth magnets. It is also betting on new models — including the S1 Pro Sport, S1 Pro+ 5.2 kWh, and Roadster X+ 9.1 kWh — slated for rollout later this year and into 2026.

Stock Performance

Even after the recent rally, Ola shares remain 43% lower in 2025 and below their Rs 76 IPO issue price. The stock has climbed above short- and medium-term moving averages but still trades under its 200-day SMA.

Aparna Deb

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a…Read More

Aparna Deb is a Subeditor and writes for the business vertical of News18.com. She has a nose for news that matters. She is inquisitive and curious about things. Among other things, financial markets, economy, a… Read More

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