Why Ola Electric Shares Have Rallied Nearly 20% In Six Sessions

Shares of Ola Electric Mobility extended their recent rally on Friday, rising more than 9% intraday and taking gains over the last six trading sessions to nearly 20%, as investors responded positively to improving profitability metrics, stronger margins and encouraging sales trends.

The stock was trading 7.75% higher at ₹42.28 during the session. Despite the recent rebound, Ola Electric shares remain down 21% over the past year, though they have gained around 12% so far in 2026.

The rally comes after the company reported mixed March quarter earnings last week. Revenue from operations fell sharply to ₹265 crore in Q4FY26 from ₹611 crore in the year-ago period. However, the company significantly reduced its losses.

Net loss narrowed to ₹500 crore from ₹870 crore a year earlier, while EBITDA loss improved to ₹281 crore from ₹690 crore in the corresponding quarter last year.

One of the key positives was a sharp improvement in profitability. Gross margin expanded to 38.5% during the quarter from 13.7% a year ago. The quarter also marked Ola Electric's first operating cash-flow positive quarter, with consolidated cash flow from operations turning positive at ₹91 crore.

Outlook Boosts Investor Sentiment

Management commentary also supported the rally. The company said service-related issues that had affected demand during much of FY26 have largely stabilised.

According to Ola Electric, average service turnaround time declined 88% between October 2025 and March 2026, while the service backlog was reduced significantly.

The company guided for June-quarter sales volumes of 40,000-45,000 units. It has already registered 12,206 units in April and 12,790 units till May 28, taking total registrations for the quarter so far to nearly 25,000 units.

In its shareholder letter, Ola Electric said its battery Gigafactory is entering the next phase of expansion, with commercial manufacturing expected to scale towards 6 GWh capacity during FY27.

The company also highlighted the increasing use of artificial intelligence across its operations. AI systems are currently handling around two lakh connected calls every day across sales, customer service and operational functions.

While management cautioned that gross margins could moderate during the first half of FY27 due to commodity inflation and aggressive pricing strategies, it maintained that the company has sufficient margin headroom to pursue growth while maintaining profitability discipline.

Despite the recent rally, the stock continues to trade significantly below its IPO price of ₹76 and its post-listing peak of ₹157.