Ola Electric zooms 16% after hitting record low for a second straight day

Ola Electric share price: Combined with the volume on the National Stock Exchange (NSE), a total of 115.89 million shares have changed hands on the counter of Ola Electric Mobility

Ola Electric shares staged a stellar turnaround in today's stock market session, surging over 16 per cent from its record low level, hit earlier in the day, on the back of heavy volumes.

 

Ola Electric Mobility's share price slipped 1.2 per cent intraday, to hit a record low of Rs 46.32 per share on Tuesday, March 18, 2025. Bargain buyers, however, scrambled to buy the stock at lower levels, driving the price higher in the intraday trade.

 

Ola Electric stock, thus, surged 16.1 per cent to hit a high of Rs 53.8 per share in the intraday trade. At 12:30 PM, the stock of the two-wheeler electric vehicle company was trading 13.45 per cent higher as against 1.09-per cent rise in the benchmark BSE Sensex index. Around 5.38 million shares have changed hands on Ola Electric's counter on the BSE, thus far in trade, which is higher than the stock's two-week average volume of 3.76 million shares traded on the exchange.

 

 

Combined with the volume on the National Stock Exchange (NSE), a total of 115.89 million shares have changed hands on the counter.

 

Notably, the stock of Ola Electric had dropped 7.2 per cent in trade on Monday, March 17, dropping below the Rs 50-mark for the first time and hitting a record low in the process, after it said that one of the company's units has been slapped with an insolvency petition.

 

According to the company's stock exchange filing, Rosmerta Digital Services Limited, an operational creditor of Ola Electric Technologies Private Limited, a wholly-owned subsidiary of Ola Electric Mobility Limited, has submitted a petition before the National Company Law Tribunal – Bengaluru Bench - alleging that Ola Electric's arm has defaulted in payment towards the services rendered by the creditor.

 

The company, thus, sought to initiate the Corporate Insolvency Resolution Process against Ola Electric Technologies Private Limited.

 

On its part, Ola Electric said: The Company has sought appropriate legal advice and it strongly disputes the claims made. The company will take all necessary and appropriate steps to protect its interests and object to the allegations in the aforesaid matter.

 

Ola Electric News

Ola Electric stock has been in the news for multiple negative news flow for quite sometime now. Apart from Ola Electric insolvency news, reports suggested last week that transport authorities conducted raids across Ola Electric's showrooms, closing them and seizing vehicles in the absence of trade certificates. Trade certificates are necessary to display, sell, offer test rides, and/or transport unregistered two-wheelers. 

 

According to a Bloomberg report, of the 3,400 showrooms that Ola has, around 100 had the basic certification, which is mandated by the Motor Vehicles Act.

 

The company, however, has refrained from commenting on the news.

 

Meanwhile, operationally, during the first fortnight of March, Ola Electric has managed to sell 7,020 units, cornering a market share of 18 per cent, as per Vahan data. It, recently, announced a limited period flash sale offer for its popular S1 range of electric scooters, allowing customers to avail discounts of up to Rs 26,750 on the S1 Air and Rs 22,000 on the S1 X+ (Gen 2), with the models now starting at Rs 89,999, and Rs 82,999, respectively.

 

Amid this, analysts at Kotak Institutional Equities maintain their 'Reduce' rating on the stock with a share price target of Rs 50.

 

"We have cut our FY2025-27 revenue assumptions by 2-15 per cent, given lower growth assumptions for the EV 2W industry, and a delay in launches for motorcycles. We expect profitability to improve from FY2026, led by cost-cutting initiatives, a shift toward the Gen-3 platform (lower BOM), and the reversal of a few one-offs (warranty cost). However, volume offtake remains below expectations, which continues to be a concern," the brokerage said in a report.

 

The motorcycle launch remains the key, as failure to meet customers' expectations will continue to weigh on brand equity and long-term market share, it added.