Ola Electric surges on D-St, but analysts still advise caution
electric two-wheeler
maker
Ola Electric Mobility
rallied about 20 per cent on Monday, the biggest single-day move in eight months, after the company's first-quarter results were better-than-expected. The stock is best suited for high-risk traders and investors, as analysts warn of continued sharp price swings in months ahead. Ola ended at ₹47.7 on Monday, up 19.75 per cent , after hitting a fresh 52-week low of ₹39.6.
'
Ola Electric
's Q1 shows a sharp operational turnaround—losses narrowed from ₹870 crore to ₹428 crore, gross margins hit a record 25.6 per cent , and the auto segment turned Ebitda (earnings before interest, taxes, depreciation, and amortization)-positive in June,' said Jahol Prajapati, research analyst at
Samco Securities
.
Its revenue from operations also rose to ₹828 crore in the June quarter from ₹611 crore in the previous quarter. However, it was down almost 50 per cent from the same period a year ago. 'The company's bullish forecast of 35-40 per cent margins and upcoming ramp-up of new products further renewed interest in the stock,' said Sagar Shetty, research analyst, StoxBox. 'The growth during the quarter was largely supported by the successful launch of its Gen 3 scooters, aiding the company to maintain accretive margins.'
The company said in an exchange filing that it expects to sell between 325,000 and 375,000 vehicles and generate revenue of ₹4,200-₹4,700 crore for FY26. Ola shares are down around 48 per cent since their debut in August 2024. As the stock declined, retail investors increased their stakes in the company. The percentage of retail shareholders holding less than ₹2 lakh in the company has increased to 12 per cent in the March quarter from 4.45 per cent at the time of listing. Shetty said that Ola continues to cede significant market share to established players and has a track record of overly optimistic guidance.
'We recommend investors maintain a cautious approach and suggest that they wait to see how the second quarter unfolds in terms of sales and overall performance,' he said. Prajapati said Ola is building a 'credible profitability' story, on account of continued cost discipline, improving warranty dynamics, and an FY26 target of 35-40 per cent gross margins. 'For investors with a high-risk appetite, it's a bold EV play on vertical integration. Conservative investors might still prefer steadier names like TVS or Bajaj for now,' he said.
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