Ola Electric Mobility Ltd., one of India’s most prominent electric vehicle (EV) manufacturers, has witnessed a dramatic upswing in its stock price, gaining over 24 percent in just two trading sessions. This rally comes after a prolonged period of underperformance, during which the stock had declined nearly 70 percent from its post-listing high of ₹157. As of August 20, 2025, Ola Electric shares were trading at ₹50.43 apiece on the National Stock Exchange, marking a sharp recovery from their recent low of ₹39.6.
This sudden surge has sparked renewed interest among retail and institutional investors alike. Several key developments—ranging from technological breakthroughs to strategic supply chain moves—have contributed to this bullish sentiment. Below is a comprehensive analysis of the factors fueling Ola Electric’s stock rally.
1. Technological Breakthrough: The 4680 Bharat Cell
One of the most significant catalysts behind the rally is Ola Electric’s announcement regarding its proprietary 4680 Bharat cell. This advanced lithium-ion battery technology is expected to revolutionize the two-wheeler EV segment in India. According to the company’s Head of Research and Development, Rajesh Mekkat, the Bharat cell offers over 15 years of battery life, five times the capacity of competing cells, and can charge up to 80 percent in just 15 minutes.
Founder Bhavish Aggarwal confirmed that products equipped with the Bharat cell will be available to customers by Navratri. This timeline has added urgency and optimism to investor sentiment, as the company prepares for a high-profile launch during the festive season.
2. Full-Scale Production at Tamil Nadu Facility
Ola Electric’s manufacturing facility in Tamil Nadu is now operating at full capacity, ahead of the upcoming product launches. The company has already rolled out its new Ola Pro Sport scooter, which is powered by the Bharat cell. Additionally, Ola has begun development of ferrite motor technology—an alternative to rare earth magnets—which could significantly reduce costs and improve sustainability.
The phased rollout strategy, starting with 200 stores and expanding nationwide by Navratri, reflects a calculated approach to scaling operations without overwhelming supply chains or service networks.
3. Strategic Supply Chain Diversification
Aggarwal has emphasized the importance of diversifying Ola’s supply chain for critical raw materials. While China remains a key source for electrode rolls, the company is increasingly sourcing from Japan and South Korea. Moreover, India’s free trade agreement with Australia—one of the largest producers of lithium and manganese—offers a strategic advantage in securing essential inputs for battery production.
This supply chain agility is particularly relevant given global concerns around resource nationalism and EV material shortages. Ola’s proactive stance positions it well to navigate future disruptions.
4. Strong Trading Volumes and Delivery Data
The recent rally is backed by robust trading volumes and delivery statistics. On August 19, over 58 crore shares of Ola Electric were traded—far exceeding the 20-day average of 11 crore shares. Notably, 14.35 crore shares were marked for delivery, representing 24 percent of total volume. This is the highest delivery ratio in two months, indicating that investors are not merely speculating but are taking long-term positions in the stock.
Such delivery-based buying is often seen as a sign of institutional confidence and can lead to sustained upward momentum.
5. Improving Financial Metrics and Margin Guidance
Despite a weak first quarter, Ola Electric has shown signs of financial recovery. The company’s gross margin improved by 1,100 basis points quarter-on-quarter and by 740 basis points year-on-year, reaching 26 percent by the end of June. Management has guided for full-year gross margins in the range of 35 to 40 percent.
Additionally, the auto business is expected to turn EBITDA-positive in the second quarter, with full-year EBITDA projected to exceed 5 percent. These improvements suggest that Ola’s aggressive investments in R&D and infrastructure are beginning to yield results.
6. Institutional Rebalancing and Stake Movement
Foreign institutional investors (FIIs) currently hold 34.7 percent of Ola Electric, down from 38 percent in the previous quarter. Meanwhile, domestic institutional investors have increased their stake to 23.4 percent, up from 20 percent. This shift indicates growing domestic confidence in the company’s long-term prospects, even as some foreign investors rebalance their portfolios.
Such reallocation often reflects deeper strategic evaluations and can influence broader market sentiment.
7. Product Pipeline and Market Share Ambitions
Ola Electric is targeting a 25 to 30 percent share of India’s two-wheeler EV market. The company’s product pipeline includes not only scooters but also electric motorbikes and potentially commercial EVs. Aggarwal has hinted at a “moonshot bike” and additional scooter variants, which could further expand Ola’s addressable market.
The company’s vertically integrated model—from battery manufacturing to vehicle assembly—gives it control over quality, cost, and innovation. This integration is a key differentiator in a market crowded with fragmented players.
Conclusion: A Turning Point for Ola Electric?
The recent surge in Ola Electric’s stock price is not merely a technical bounce—it reflects a confluence of strategic, technological, and financial factors. From the launch of the Bharat cell to improved margins and supply chain resilience, the company appears to be entering a new phase of growth.
However, challenges remain. The EV market is highly competitive, regulatory changes could impact demand, and execution risks persist. Investors will be watching closely to see if Ola can maintain momentum and deliver on its ambitious promises.
For now, the rally signals renewed confidence in Ola Electric’s vision and its role in shaping India’s EV future.
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