Ola Electric Shares Jump 12%, Extend Six-Month Rally to Nearly 80%

Ola Electric Mobility shares surged as much as 12% in intraday trade on September 23, extending their gains for a third consecutive session. The stock opened at ₹38.16 on the BSE against its previous close of ₹37.78 and climbed to ₹42.32, accompanied by trading volumes nearly four times normal levels. The latest move takes the stock’s six-month gain to almost 80%.

The recovery has been supported by a series of business developments. Ola recently launched the mass-market S1Z electric scooter, while its first dealer-led stores have begun operations across several states after the company opened its sales and service network to external partners. The shift adds a partner-led distribution model to Ola’s existing company-owned retail network.

Government incentives have provided another catalyst. Ola secured ₹95.8 crore under the PLI-Auto scheme for FY27, while its battery-cell subsidiary received a revised timeline under the Advanced Chemistry Cell PLI programme. The company has also said it is expanding Gigafactory capacity from 2.5 GWh toward 6 GWh and exploring external battery-cell sales.

The rally, however, comes while the operating business remains under pressure. Ola’s Q1 FY27 revenue fell 45% year-on-year to ₹455 crore, although its net loss narrowed to ₹336 crore from roughly ₹428 crore. Market share recovered sequentially to 8.4% from 5.1%, but operating cash flow was negative ₹215 crore. Its board has also approved an enabling plan to raise up to ₹1,500 crore, subject to required approvals.

That contrast explains why the stock’s recovery is being watched closely. Investors are increasingly pricing in new products, wider distribution, battery-cell expansion and improving EV penetration, while analysts continue to flag volumes, profitability and cash burn as risks. Ola’s next test is whether the momentum visible in its share price can eventually be supported by sustained revenue growth and stronger operating economics.