Why Ola Electric Stock is Racing Ahead Despite Losses
Ola Electric Stock Rally – Key Highlights
Sharp Surge in Stock Price
Ola Electric’s shares have rallied 47% in the last 30 days.
In just the last 10 days, the stock witnessed a massive rally.
In early trade on Monday, the stock jumped 7.33% to ₹58.01.
Over the past five trading sessions, shares rose nearly 20%.
Contrast with Market Trend
Many companies’ shares fell due to Trump’s high tariff policy, putting pressure on global markets.
Despite this, ola Electric’s stock has consistently gained momentum.
Reason Behind the Rally
Ola Electric’s Gen-2 and Gen-3 scooter line-up received recognition under the Production Linked Incentive (PLI) scheme.
Under PLI, the company is eligible to earn 13%–18% incentives on sales, valid till 2028.
This move is expected to reduce costs, improve profitability, and bring stability.
More than half of Ola’s sales come from Gen-3 scooters, so certification boosts investor confidence.
The company highlighted that the scheme will positively impact EBITDA margins.
Financial Performance – Still Under Pressure
Despite stock gains, ola Electric posted a loss of ₹428 crore in Q1 (June quarter).
Losses widened from ₹347 crore in the same quarter last year.
Revenue fell sharply, down 50% YoY to ₹828 crore, compared to ₹1,644 crore last year.
Investor Outlook
The rally is largely sentiment-driven, fueled by PLI benefits and future profitability expectations.
However, challenges remain with falling revenues and widening losses.
Investors are watching closely whether ola can convert incentives into sustainable profits.
In short: ola Electric’s PLI certification for Gen-3 scooters has fueled optimism, driving stock gains, even though financial losses remain a concern.
Sharp Surge in Stock Price
Ola Electric’s shares have rallied 47% in the last 30 days.
In just the last 10 days, the stock witnessed a massive rally.
In early trade on Monday, the stock jumped 7.33% to ₹58.01.
Over the past five trading sessions, shares rose nearly 20%.
Contrast with Market Trend
Many companies’ shares fell due to Trump’s high tariff policy, putting pressure on global markets.
Despite this, ola Electric’s stock has consistently gained momentum.
Reason Behind the Rally
Ola Electric’s Gen-2 and Gen-3 scooter line-up received recognition under the Production Linked Incentive (PLI) scheme.
Under PLI, the company is eligible to earn 13%–18% incentives on sales, valid till 2028.
This move is expected to reduce costs, improve profitability, and bring stability.
More than half of Ola’s sales come from Gen-3 scooters, so certification boosts investor confidence.
The company highlighted that the scheme will positively impact EBITDA margins.
Financial Performance – Still Under Pressure
Despite stock gains, ola Electric posted a loss of ₹428 crore in Q1 (June quarter).
Losses widened from ₹347 crore in the same quarter last year.
Revenue fell sharply, down 50% YoY to ₹828 crore, compared to ₹1,644 crore last year.
Investor Outlook
The rally is largely sentiment-driven, fueled by PLI benefits and future profitability expectations.
However, challenges remain with falling revenues and widening losses.
Investors are watching closely whether ola can convert incentives into sustainable profits.
In short: ola Electric’s PLI certification for Gen-3 scooters has fueled optimism, driving stock gains, even though financial losses remain a concern.