Revenue Down 50%, Stock Up 17%? The Ola Electric Share Price Puzzle Explained

Shares of Ola Electric surged 17.31% on Monday, hitting an intraday high of Rs 46.69, despite the company reporting a sharp increase in losses for the June 2025 quarter. The stock opened at Rs 39.92 and was last seen trading just shy of its peak at Rs 46.61, reflecting strong investor interest.

The market’s upbeat response came even as the electric two-wheeler maker struggles with slower sales, a subsidy rollback under the FAME-II scheme, and increased competition from rivals such as TVS, Ather Energy, and Bajaj Auto.

The Bhavish Aggarwal-led firm saw its revenue fall sharply by 49% year-on-year to Rs 828 crore, down from Rs 1,644 crore in the year-ago quarter. While attributing the revenue degrowth to a post-subsidy correction in demand and adjustments in pricing strategy, the Bengaluru-based electric vehicle maker maintained that it is in a “transitional phase” as it optimises inventory and prepares for new product introductions.

Why Ola Electric's stock is surging

Despite the weak earnings, investor sentiment appeared buoyed by the company’s forward-looking commentary. Ola Electric indicated that the operating cash flow of its core auto business is expected to turn positive in the coming quarters — a signal that the company is inching closer to financial self-sufficiency.

Analysts say the upbeat market response also reflects optimism around Ola’s broader strategy. The company continues to invest in localisation and scale, with its lithium-ion cell gigafactory in Tamil Nadu nearing commercial production, and a new range of electric motorcycles slated for launch later this year.

Also Read: Ola Electric Shares Hit Record Low at Rs 39.76— Is There Any Hope for Investors? | Republic World

Stock’s performance before results announcement

Notably, Ola Electric’s strong stock market performance took a sharp hit last week. On July 11, its shares fell to a new all-time low of Rs 39.76 on the NSE, marking a steep drop from its August 2024 listing high of Rs 157.40. This decline has eroded nearly 75% of investor wealth since then.

Ola Electric’s stock continued to slide after a block deal of 1.29 million shares took place on July 10, 2025, on the Bombay Stock Exchange (BSE). The stock fell about 1.2% in that trade, closing at a record low of Rs 39.90. A block deal refers to the sale or purchase of a large number of shares—typically by institutional investors—executed in a single transaction.