Ola Electric shares climb 7%; time to add or still an avoid?

Shares of Ola Electric Mobility Ltd climbed 6.73 per cent on Thursday to close at Rs 36.65. However, despite the rebound, the stock remains down 57.49 per cent so far in 2025.

The Bhavish Aggarwal-led company, which once dominated India's electric two-wheeler market, slipped to fifth position in November, with Hero MotoCorp's EV arm Vida surpassing Ola Electric to become the fourth-largest player.

On the earnings front, the company posted a narrower consolidated net loss of Rs 418 crore for the July–September quarter (Q2 FY26), compared with Rs 495 crore in the same quarter last year. However, revenue from operations fell 43 per cent year-on-year (YoY) to Rs 690 crore, down from Rs 1,214 crore in Q2 FY25.

Technically, analysts note that Ola Electric remains in a strong downtrend after recently marking new lows, with resistance ahead and no clear signs of a sustained recovery. They recommend avoiding fresh positions until the stock establishes a stable base.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "The stock has seen a steep correction lately, pushing it to fresh all-time lows. The overall setup remains weak, with resistance placed around the Rs 40–42 zone. Investors are advised to stay on the sidelines until a clear and sustained reversal emerges."

Drumil Vithlani, Technical Analyst at Bonanza, added, "Ola Electric continues to be firmly in a downtrend, trading below major moving averages with no indication of a trend change. The recent upward move looks like a short-lived oversold bounce, lacking substantial volume support. Momentum indicators also remain soft. New positions should be avoided until the stock establishes a stable base."

Founded in 2017, Ola Electric manufactures electric 2-Ws and components such as battery packs, motors and frames at its Ola Futurefactory. As of September 2025, promoters held a 36.78 per cent stake in the company.