Shares of Ola Electric surged over 9% during the intraday trading on the BSE, hitting a high of ₹42.84 as investor sentiment turned positive following improving operational performance and signs of demand recovery.
The stock later pared some of the gains and was trading 7% higher at around ₹42 at 12:52 IST. The company’s market capitalisation stood at approximately ₹18,525.4 Cr (about $1.9 Bn).
The stock has rallied nearly 14% in the past two trading sessions. It has also more than doubled from its 52-week low of ₹21.21 (hit on March 2, 2026). However, it still remains below its 52-week high of ₹71.24, which it touched on September 4, 2025.
Over the past year, the stock is down 21%, though it has gained 12% so far in 2026.
The recent rally follows a mixed Q4 FY26 earnings performance alongside improving operational indicators such as better margins, lower costs and early signs of demand recovery.
Investor sentiment also strengthened after Ola Electric, as per a PTI report, received ARAI approval for a new commercial electric scooter aimed at delivery and logistics applications, including food delivery and quick commerce use cases.
Meanwhile, VAHAN data shows early signs of recovery in Q1 FY27, with the company recording around 22,600 registrations. This is higher than the Q4 FY26 registration of 22,221 units, indicating a pickup in demand after a weak March quarter.
The company has guided for 40,000 to 45,000 orders and ₹500-₹550 Cr revenue in Q1 FY27, indicating a strong sequential recovery if momentum continues.
In Q4 FY26, its net loss narrowed 43% to ₹500 Cr from ₹870 Cr a year earlier, though it rose 3% sequentially. Revenue declined 57% YoY to ₹265 Cr due to lower deliveries.
Deliveries fell 61% YoY to 20,256 units, while total expenses dropped 57% to ₹546 Cr, hinting at improved cost control.
The company also reported its first positive operating cash flow quarter at ₹91 Cr, supported by PLI incentives, improved margins, and tighter spending. For FY26, net loss narrowed 20% to ₹1,833 Cr, while revenue declined 50% to ₹2,460 Cr.
FY26 was described as a “reset year,” focused on improving service quality, margins, and operational efficiency. Gross margin improved to 38.5% in Q4, while warranty costs fell significantly to ₹59 Cr from ₹555 Cr earlier.
The company claimed its service performance also improved, with turnaround time reducing from 9 days to nearly 1 day and same-day resolutions rising to 87%.
Looking ahead, Ola Electric aims to regain 15-20% market share over the next six months and scale its electric motorcycle business.
Its 6 GWh gigafactory is nearing completion, with production expected to begin in Q1 FY27, followed by planned expansion to 20 GWh.
However, auditors flagged negative operating cash flow of ₹775 Cr in FY26, although this marked an improvement from the previous year. The company said liquidity remains stable, supported by cash reserves, credit lines, and a planned ₹1,500 Cr QIP.
Overall, while near-term margin pressure may persist due to higher costs, the company expects a recovery in volumes and a gradual move toward profitability in FY27.
The post Ola Electric Rallies Over 9% Amid Signs of Demand Revival appeared first on Inc42 Media.
https://ift.tt/3h4q8CG
0 Comments