The flagbearer of electric mobility, Ola Electric, has been in the news mostly for the wrong reasons, be it the company’s declining sales, diminishing market share, or poor-performing stock.
However, the developments on the latter front have been encouraging for the company.
Shares of Ola Electric have surged sharply on the bourses, rallying over 20 percent in the last two sessions. The surge is led by a strong turnaround in its business performance and improving investor sentiment.
After a strong rally on Wednesday, the stock again climbed as much as 10 percent on the bourses on Thursday.
While it opened marginally lower at Rs 25.6 compared to its previous close of Rs 25.93, the stock later surged over 10.3 percent to Rs 28.61. It finally ended the session at Rs 28.35, or over 9 percent higher than the previous day.
In the last two days, the scrip has surged over 20 percent.
The rally has been triggered by March operating data showing a recovery in demand for the company’s electric two-wheelers.
According to the company, daily orders crossed 1,000 units in the last week of March, indicating a meaningful pickup in traction after a prolonged slowdown.
The improvement was also reflected in registration numbers. As per the VAHAN portal, Ola Electric’s registrations rose more than 50 percent month-on-month to 10,117 units in March, compared to 3,973 units in February.
This marked a sharp rebound in volumes and suggested a revival in consumer demand.
The company termed this as a “V-shaped” recovery, highlighting that it regained market share through the month.
Ola attributed the rebound to structural improvements in service operations, with over 80 percent of vehicles now being serviced on the same day. Service issues had earlier dented customer satisfaction and sales for the company.
Investor confidence was further bolstered as Ola became the first electric vehicle (EV) brand in India to cross 1 million cumulative registrations.
