Ola Electric Stock Rises 20% as New LFP Cell Boosts Sentiment

Shares of Ola Electric Mobility surged as much as 20% on Thursday, extending their recent recovery, as positive developments around its in-house battery technology and improving sales momentum lifted investor sentiment.

The stock jumped to ₹36.32 apiece, adding over ₹2,850 crore to its market capitalisation, which rose to nearly ₹15,600 crore. Over the past one month, the stock has rallied around 54%, marking a sharp rebound from its recent lows.

The rally follows an announcement by founder Bhavish Aggarwal that the company’s in-house developed Lithium Iron Phosphate (LFP) battery cell is ready for deployment. The new 46100 format cell, larger than the existing NMC cells, is expected to be introduced in Ola’s products from the next quarter.

LFP Battery, Sales Recovery Drive Sentiment

The company said the new battery technology could help reduce costs, improve efficiency and support its broader push into energy storage, as it scales up its gigafactory operations.

Aggarwal added that the company’s strategy focuses on removing barriers to EV adoption through pricing initiatives, service guarantees and buyback programmes, while also passing on production-linked incentive benefits to improve affordability.

The announcement comes at a time when the company is witnessing a recovery in business performance. Vehicle registrations rose sharply by over 150% month-on-month to 10,117 units in March, compared to 3,973 units in February. Daily orders also crossed 1,000 units in the last week of March, indicating improving demand trends.

Sharp Recovery After Steep Fall

Despite the recent rally, the stock remains significantly below its historical levels. It had fallen to an all-time low of ₹22.25 on March 16, marking a steep decline of about 85% from its post-listing high of ₹157.5.

The company, which debuted on the stock exchanges in August 2024, is still trading over 50% below its issue price of ₹76 per share.