From a low of ₹39.6 in mid-July 2025 to nearly a 60% spike in just weeks, Ola Electric’s stock has bounded back impressively. But what's driving this rally despite the company’s recent weak quarterly results? Let’s dive into the four key reasons behind this electrifying comeback.
PLI Certification
One major boost has been Ola’s Gen 3 electric scooters receiving Production Linked Incentive (PLI) certification. This means Ola can now avail up to 18% incentives on sales till 2028, a substantial margin booster for a company facing high costs and cash burn. Investors see this as a clear pathway to improved profitability over the next few years.
Breakthrough In-House Battery Technology
Founder Bhavish Aggarwal recently unveiled Ola’s Bharat Cell tech, India’s first homegrown lithium-ion battery cell. With a remarkable 15-year lifespan, 5x capacity increase, and rapid charging capability (80% charge in just 15 minutes), this breakthrough reduces reliance on costly imports. It not only lowers costs but also positions Ola as a technology leader in India’s EV space.
Strong Government Push
The Indian government, via Niti Aayog, is accelerating the adoption of electric motorcycles, with policy support aiming to encourage EV manufacturers. Ola is in talks alongside industry giants like Hero, Bajaj, and TVS for new initiatives. This growing policy thrust creates a favorable environment for Ola’s growth and market capture.
Market Share Recovery
Increasing consumer demand, particularly ahead of India’s festive season, has helped Ola regain ground in the electric two-wheeler market. Despite earlier setbacks, Ola’s improved product offerings and brand recognition have driven a recovery in its market share, boosting investor confidence in its future growth prospects.
While Ola Electric still reports widening net losses and slowing revenue growth, the market’s focus is shifting toward its turnaround potential and growth pipeline rather than near-term financials. With technology breakthroughs, government backing, and a rising market share, Ola’s stock rally reflects investor optimism about its future.
