- Ola Electric shares surge nearly 70% in April after prior decline.
- Improved March sales and daily orders signal demand stabilization.
- After-sales service improvements and cost efficiencies aid sentiment.
Ola Electric Share Price:Shares of Ola Electric Mobility have staged a sharp comeback in April, rising nearly 70 per cent so far this month, offering a breather to investors after months of relentless selling pressure.
The rally marks a notable shift in sentiment for the new-age electric vehicle (EV) player, which had been under intense scrutiny following a prolonged downturn.
A Sharp Rebound After Months Of Decline
The recent surge comes after six consecutive months of losses beginning October, during which the stock had lost nearly 85 per cent of its value, reported Livemint. At its lowest point, the stock had fallen to Rs 21.21, wiping out close to Rs 9,000 crore in market capitalisation.
The decline was driven by a combination of concerns, including weak sales volumes, declining market share, rising losses, persistent cash burn and operational execution challenges.
However, April’s rally, including a 6 per cent jump in Friday’s session, suggests that investor sentiment may be turning, at least in the near term.
What Is Driving The Rally?
The primary trigger for the rebound appears to be an improvement in sales momentum.
Vehicle registrations rose sharply in March to around 10,117 units, compared with 3,973 units in February. This jump has been seen by the market as an early indication that demand may be stabilising after a prolonged slowdown.
In addition, daily order volumes reportedly crossed 1,000 units in the last week of March, reinforcing the view that the demand environment is improving.
Another key factor supporting sentiment is the company’s efforts to address after-sales service concerns, a major issue that had weighed on investor confidence in recent months. The company has indicated that over 80 per cent of vehicles are now being serviced on the same day, signalling operational improvements.
Cost Efficiency Push And Pricing Strategy
Ola Electric has also taken steps to improve cost efficiencies, which appear to be resonating with investors.
The company recently reduced the price of its Roadster 9.1 model by Rs 60,000, a move enabled by an increase in in-house cell production. Over the past year, the company has ramped up manufacturing of its indigenously developed 4680 Bharat Cell, aiming to improve margins through vertical integration.
At the same time, the company is accelerating the expansion of its Gigafactory, with capacity scaling towards 6 GWh. This expansion is expected to further enhance cost efficiencies and strengthen the company’s long-term manufacturing capabilities.
Financials Still Under Pressure
Despite the recent improvement in operational indicators, the company’s financial performance continues to remain under strain.
In the third quarter of FY26, Ola Electric reported revenue of approximately Rs 470 crore, while its net loss widened to around Rs 487 crore. The widening losses underscore that profitability remains a key challenge, even as the company works towards improving sales and efficiency.
Is The Turnaround Sustainable?
While the rally has been sharp, analysts caution that it may be premature to conclude that a full-fledged turnaround is underway.
Market participants are likely to closely track sales data for April and May to assess whether the recovery in demand is sustainable. The recent uptick in registrations is encouraging, but consistency over the coming months will be critical.
Moreover, competition in the EV segment continues to intensify, with both established players and new entrants vying for market share. This could limit pricing power and put pressure on margins going forward.
