Ola Electric shares slip 5% after one-day rise; was the recovery short-lived?

Shares of Ola Electric Mobility Ltd slipped again in Tuesday's trade, falling as much as 5.35 per cent to hit a low of Rs 44.61 following a sharp one-day rebound. The stock was last seen trading at Rs 45.39, down 3.69 per cent for the day. So far in 2025, the scrip has lost 47.36 per cent of its value.

The company reported a wider consolidated net loss of Rs 428 crore for Q1 FY26, compared to Rs 347 crore in the same quarter last year. Revenue from operations also dropped 49.64 per cent YoY to Rs 828 crore, down from Rs 1,644 crore a year earlier.

On a sequential basis, however, Ola Electric showed signs of improvement. The Q1 loss was lower than the Rs 870 crore loss posted in Q4 FY25, while revenue increased from Rs 611 crore in the previous quarter.

Ola Electric has rebounded from its all-time low level of Rs 39.58 after the earnings report but the technical outlook remains weak and caution is advised. Support is seen at Rs 40, with resistance around Rs 49. A decisive move above Rs 49 could lead to a further rally towards Rs 55, while any drop below Rs 40 may resume the downward trend. In the near term, the stock is expected to trade within the Rs 40–55 range.

"For Ola, if you look at the trajectory, the competition was about to heat up with Ather, Hero, Bajaj, and others entering the EV two-wheeler space. They did enjoy the first-mover advantage, but after that, things have really turned difficult for them. It's an evolving and disruptive space that the two-wheeler industry is facing, and natural growth is not coming for the industry. Competition from established players has intensified, as they have pulled up their socks and geared up. I don't think it's going to be an easy road for Ola Electric going forward. Although the management has always sounded very confident, the challenge is much tougher now. So let them get their act together, and if they are able to gain market share, then one can consider venturing in. But as of now, it's an avoid from our side," Dharmesh Kant, Head of Equity Research at Cholamandalam Securities, told Business Today.

"Ola Electric has surged from its lifetime low zone following the earnings report. However, the technical outlook still appears weak and caution is advised in this counter. On the level-specific front, a breakdown below Rs 40 could extend the downward move, while a stiff resistance is seen in the Rs 51-54 zone," said Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One.

"Support will be at Rs 40 and resistance at Rs 49," noted Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi, adding that a decisive move above Rs 49 could trigger further upside towards Rs 55. He expects the stock to trade within the Rs 40–55 range in the short term.

Founded in 2017, Ola Electric primarily manufactures EVs and certain core components such as battery packs, motors and vehicle frames at the Ola Futurefactory. As of March 2025, promoters held a 36.78 per cent stake in the electric two-wheeler (E2W) player.