Why did Ola Electric Mobility’s stock rally up to 12% in the first two trading days of 2026?

Synopsis: Ola Electric Mobility’s shares jumped up to 9% in today’s session and have rallied almost 12% over the last two trading sessions. In this article, let’s explore the reasons behind the rally.

The shares of a small-cap company specializing in the design, manufacturing, and sale of electric vehicles (EVs) jumped up to 9 percent in today’s session and have rallied almost 12 percent over the last two trading sessions. In this article, let’s explore the reasons behind this 12 percent rise.

With a market capitalization of Rs. 17,797.70 crores on Friday, the shares of Ola Electric Mobility Ltd jumped up to 8.6 percent, reaching a high of Rs. 40.77 per share compared to its previous closing price of Rs. 37.51 per share.

Ola Electric Mobility Ltd, engaged in the design, manufacturing, and sale of electric vehicles (EVs), surged as much as 9 percent on January 2, 2026, and has rallied up to 12 percent in the first two trading days of 2026. Let’s explore the reasons behind this rally.

What’s driving the rally?

• Strong December Sales and Market Share Gains: Ola Electric sold 9,020 units in December 2025 as per VAHAN data, increasing its market share from 7.2% in November to 9.3% in December, and nearly 12% in the second half of December. This sharp rise reflects accelerating demand and reassures investors of the company’s growth momentum in a competitive EV market.
• Recovery in Key States: The company regained a spot among the top three EV players in nearly a dozen states, including Tamil Nadu, Uttar Pradesh, Bihar, Jharkhand, Punjab, and Haryana. Strong performance in these states signals expanding geographic reach and strengthens market credibility.
• Strong Regional Momentum in Southern India: Southern India saw a 2.5 percentage point market share increase, with Bengaluru alone contributing about 4 percentage points. This demonstrates that Ola is successfully capturing urban EV demand in key metro regions.
• Ola Expands In-House Battery Use: Ola Electric started deliveries of its 4,680 Bharat Cell-powered S1 Pro+ 5.2 kWh scooters in November 2025, witnessing strong early demand. In December 2025, the company also received government certification for its 4680 Bharat Cell-powered Roadster X+ motorcycle, expanding its in-house cell platform to both scooters and motorcycles. 
• Improving Financial Performance: Ola narrowed its Q2 consolidated loss to Rs 418 crore from Rs 495 crore YoY, highlighting better operational efficiency. The company is prioritizing profitability over volume growth, with gross margins in the auto segment expected to reach ~40% by Q4, supporting a positive outlook.
• Positive Guidance and Delivery Targets: For the second half of FY26, Ola aims to deliver 100,000 units and expects revenue of Rs 3,000–3,200 crore, reinforcing its growth strategy. Clear targets provide investors with confidence in the company’s planned trajectory.
• Attractive Valuation: The stock is trading 54% below its 52-week high of Rs 88.55 and far below its all-time high of Rs 157.40. This undervaluation makes it appealing for investors expecting a recovery driven by strong demand and market share gains.

The company’s revenue declined by 43.16 percent from Rs. 1,214 crore in September 2024 to Rs. 690 crore in September 2025. Meanwhile, the Net profit loss declined from Rs. 495 crore to  Rs. 418 crore during the same period.

Ola Electric Mobility Ltd is a leading Indian electric vehicle (EV) manufacturer known for its electric scooters and bikes, building an in-house tech ecosystem with vertically integrated R&D, software (MoveOS), and manufacturing at its large Ola Futurefactory in Tamil Nadu. 

It aims to spearhead India’s electric mobility transition by controlling core components like cells, motors, and batteries, operating a direct-to-customer sales model with its own charging network, and rapidly expanding its product range. 

The company has developed a vertically integrated ecosystem that covers everything from product and software design to advanced cell manufacturing, ensuring full control over its process. It designs core components entirely in-house, from chassis and motors to software and cells, achieving industry-leading standards and securing numerous patents to date.

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