Shares of Ola Electric have been on a bit of a roll lately. The stock has risen for three straight sessions, ending Friday at Rs 40.9 on BSE. That’s almost double its 52-week low of Rs 21.21, which it touched on March 2.
At first glance, it might look like a good-luck streak. But dig a little deeper, and it seems like there is more than luck at play.
So, what’s really driving this surge?
A string of positive updates and improving numbers suggests the rally could be backed by real progress.
Source: Google Finance
In-house LFP battery cell: Through most of March, the stock stayed stuck in the Rs 22–25 range. Then came a key announcement on April 7.
The Bhavish Aggarwal-led company said its in-house lithium iron phosphate (LFP) battery cell is now ready for production. This is a big step towards building everything internally: from battery to vehicle.
The new 46100 format LFP cell is larger than its earlier NMC-based 4680 Bharat Cell. In simple terms, that could mean better scale, lower costs, and wider use across both electric vehicles (EVs) and energy storage.
It’s the kind of update that signals long-term intent, not just short-term noise.
PLI for Roadster X+: A few days earlier, on April 3, Ola Electric ticked another important box.
It secured Production Linked Incentive (PLI) certification for its Roadster X+ 4.5 kWh variant. This approval, given under the government’s PLI-Auto scheme, strengthens its manufacturing credentials.
More importantly, this shows the company’s compliance and eligibility for incentives—something that could support margins and growth over time.
Vehicle registrations double: There’s also been a visible improvement in demand.
Vehicle registrations jumped to 10,117 units in March, more than double February’s 3,973 units. That’s a sharp rebound after a weak spell.
Towards the end of March, daily orders even crossed 1,000 units. That suggests buyers are returning, at least for now.
Improved services: After facing continuous criticism over service quality, the company finally seems to be taking action.
It says it has improved parts availability and diagnostics. Over 80% of vehicles are now serviced on the same day, according to the company.
On top of that, it has launched customer-friendly offers—service guarantees, free cab rides if there are delays, buyback options, and extended warranties.
These moves are clearly aimed at rebuilding trust.
Flight after a turbulent ride
The recent rise comes after a rough phase.
Since listing in August 2024 at Rs 76, the stock has fallen sharply. It had even jumped 20% on debut to Rs 91.2, taking its market capitalisation to Rs 40,218 crore at the time. Since then, the valuation has nearly halved, with the market cap now around Rs 18,040 crore.
Concerns around service issues, product quality, and falling market share weighed heavily on sentiment.
ET reported in February that the company also scaled back its retail expansion plans, aiming to cut its store count to around 550, just a year after talking about expanding its retail network to 4,000 stores nationwide.
What now?
Even with this rally, caution remains. Data from Trendlyne suggest that the stock may be overbought, with valuations looking stretched. That raises the possibility of a pullback.
So yes, Ola Electric may be on a “good-luck” streak. But this time, it doesn’t look like luck alone, with signs of real change underneath. The only remaining question: will it be able to sustain the momentum back to its original glory?
