Ola Electric shares rise after Q4 losses as volumes and expectations improve

The shares of Ola Electric Mobility surged nearly 9% to hit their highest level in more than four months on Friday, recovering around 93% from March lows.The shares of the EV-scooter maker jumped to Rs 42.88 apiece on the NSE on Friday. This is the highest level seen by the stock since January 7 this year. The stock has staged a strong recovery after hitting an all-time low of Rs 22.25 apiece on March 16 this year.Despite the latest recovery, the stock remains far away from its post-IPO all-time high level of Rs 157.40 apiece, which it hit days after its market debut in August, 2024.Ola Electric Q4 earningsOla Electric shares have gained more than 17% since releasing its Q4 results last week. The Bhavish Aggarwal-led company last Wednesday reported a consolidated net loss of Rs 500 crore for the January-March quarter of the financial year 2026, down 42.5% from the Rs 870 crore net loss reported in the corresponding quarter of the previous financial year.While Ola Electric has seen some sequential volume improvement (March-April retails at 10,000-12,000/month vs around 8,000/month on average from November 2025 to January 2026) and market share (8-9% in April 2026/May 2026; 5% in Q4 FY26), Emkay attributes the volume growth to the currently better placed production capacity, share gains in the more price-sensitive northern markets, and electric two wheeler incumbents along with Ather operating at peak utilization amid strong demand."Ola is adopting several measures to improve execution, cut costs/conserve cash, and improve brand perception (service-related issues have started resolving). We believe this could be a difficult, long-drawn-out process, especially due to greater focus by incumbents + scale-up at Ather. Additionally, new capacities coming onstream for incumbents/Ather in H2 FY26 would reintroduce competition in the industry structure," the brokerage said.Given the current dynamics, Emkay believes that Ola's recovery in volume and market share remains monitorable. “We increase FY27E volume by around 10%, given the strong momentum in the underlying E-2W industry,” it added.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

As volumes recover, the company expects the Auto business to move towards Adjusted Operating EBITDA and free cash flow positivity through FY27, believes Ola Electric.