Why Are Ola Electric Shares Surging In Trade?

Ola Electric shares gained for yet another session, rising 12% on Wednesday, taking the gains to 28% in the last week. Reports suggest that 0.3% equity changed hands in multiple block deals in early trade. 

It was the top trending stock on Stocktwits at the time of writing. 

Why Is Ola Stock Surging?

Earlier this week, Ola’s founder and chairman, Bhavish Aggarwal, shared the growth strategy for the company at their annual event. Ola is targeting a 25-30% market share in India’s two-wheeler market for electric vehicles. As of July 2025, Ola’s market share slipped to 17.35% from 38.3% year-on-year (YoY).

Foreign Institutional Investors holding too has come down at the end of June quarter to 34.7% from 38.7% (YoY). On the other hand, domestic institutional investors raised their stake to 23.4% from 19.4% (YoY).

In the June quarter (Q1 FY26), the company saw its losses narrow and revenue improve compared to the previous quarter. Its auto business turned EBITDA positive in June. 
 

In an interview with Moneycontrol, Aggarwal elaborated on their plans for the gigafactory in Tamil Nadu’s Krishnagiri, where they plan to build lithium-ion cells. The EV company recently launched its new scooter, the Ola Pro Sport, equipped with the Bharat Cell. 

Buzz around potential GST rate cut for small cars and two-wheelers has kept the investor sentiment rising in the broader auto sector this week. And the other important factor at play is the thaw in trade ties between India and China after Beijing assured India on rare-earth supply on Tuesday. Nearly 37% of Ola’s costs from China (cells, magnets). 

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment turned ‘bullish’ on the counter a day ago amid ‘high’ message volumes. 

Analyst Financial Sarthis had flagged that a breakout above ₹45 would be the first sign of recovery for Ola stock. 

Ola Electric shares have declined 40% so far this year. 

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