Ola Electric shares jump 18% despite wider Q1 loss; what should existing investors do?

Shares of Ola Electric Mobility Ltd bounced back on Monday, ending a five-day losing streak with a sharp 17.60 per cent rise to a high of Rs 46.83. At last check, the stock was up 16.30 per cent at Rs 46.31, though it is still down 46.29 per cent so far in 2025.

The recovery came despite the company reporting a wider year-on-year (YoY) consolidated net loss for the April–June quarter of FY26 (Q1), which rose to Rs 428 crore from Rs 347 crore in the same period last year. Revenue from operations also declined significantly by 49.64 per cent to Rs 828 crore, compared to Rs 1,644 crore a year ago.

However, the sequential (quarter-on-quarter) performance showed signs of improvement. In Q4 FY25, Ola Electric had posted a net loss of Rs 870 crore and revenue of Rs 611 crore in Q4 FY25 -- making Q1 figures relatively better on a quarter-on-quarter basis.

In an official statement, the company said its Q1 FY26 results reflected strong financial discipline and operational execution. It highlighted that the auto segment's EBITDA margin improved notably to -11.6 per cent from -90.6 per cent in Q4 FY25, with June marking the first month of positive EBITDA in the auto business. Consolidated EBITDA also saw a significant recovery, improving to -28.6 per cent from the previous quarter.

A market expert advised that existing investors may hold onto the stock, while a few recommended avoiding fresh entries at current levels unless there are clear signs of a recovery.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, stated, "Existing investors may continue to hold the stock, but fresh entry is not recommended at current levels unless there are clear signs of a recovery."

"The stock is currently in the oversold zone and Rs 45 is a crucial level to watch for a potential reversal. Only a decisive close above this level could indicate that the stock is on the path to recovery," Vaishali Parekh, Vice President – Technical Research & Analysis at Prabhudas Lilladher, told Business Today.

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, recommended staying away from the counter for now, suggesting investors wait until a clear and decisive recovery is evident.

Separately, a media report claimed that Maharashtra has decided to shut down nearly 90 per cent of Ola Electric's 450 showrooms in the state due to the absence of permits required to store unregistered vehicles. According to the report, Maharashtra contributed around 12 per cent of Ola Electric's 3,44,000 scooter sales in the previous financial year.

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.