Shares of Ola Electric Mobility Ltd. experienced a significant surge of nearly 14% on Tuesday, hitting a high of Rs 34.07 apiece. This impressive rally marks the company's strongest daily percentage gain since a 19.99% jump recorded on April 9.
The sharp upward movement in Ola Electric's stock aligns with broader positive sentiment in the electric vehicle (EV) sector, particularly following robust Q2 FY27 results from rival Ather Energy Ltd. Ather's shares also saw an 8% increase today, building on a 14.13% rise the previous day.
Record EV Registrations Fuel Market Optimism
A key driver for this market optimism is the record-breaking performance of electric two-wheeler registrations across India. According to Vahan data, approximately 5.98 lakh units were registered in Q2 FY27, representing an 82% year-on-year increase. This pushed EV penetration to an all-time high of 11.6% in September 2026, up from 7.8% a year earlier.
This robust growth was widespread, with registrations climbing 85% in South India, 82% in the Rest of India, and 79% in Middle India.
Ather Energy's Strong Q2 Performance
Ather Energy's strong Q2 performance provided a significant rub-off effect. The company reported a 63% year-on-year rise in revenues, surpassing Street estimates by 7%. This revenue growth was primarily driven by a 42% year-on-year volume increase and a 15% sequential growth in average selling price (ASP).
Furthermore, Ather's EBITDA margin turned positive at 0.8%, outperforming Emkay Global's estimate of minus 3.8%. This achievement came despite elevated commodity pressures, attributed to calibrated price hikes, structural cost savings, and a favorable product mix.
Increased Customer Interest and Capacity Utilization
Ather also noted a substantial rise in customer interest, with enquiries surging 109% year-on-year to about 10 lakh. Pre-orders more than doubled to 1.80 lakh in Q2 FY27. Demand reportedly outpaced available production capacity, with Ather's Hosur facility operating at 98% capacity utilization during peak production in Q2 FY27.
Ola Electric's Strategic Shift and Analyst Views
In a related development, Ola Electric recently announced a strategic shift in its sales and service model, moving away from its company-owned store model to open its network to dealer partners across India. This change aims to expand its reach and service capabilities.
Despite the recent stock rally, some global investment banks maintain cautious outlooks on Ola Electric. Goldman Sachs recently downgraded Ola Electric Ltd to 'Sell' from 'Neutral', cutting its target price to Rs 23 per share from Rs 39.28. The bank cited a challenging path to free cash flow due to high interest costs, significant capital expenditure needs, and prolonged operating losses.
Goldman Sachs estimates Ola Electric would need to scale its topline 3.6 to 7.1 times over FY26 levels by FY28-FY30 to cover current capex and interest servicing. This contrasts with a 55% decline in topline in FY26 versus FY24. The bank also reduced its FY27-FY29 revenue estimates for Ola by up to 10%, factoring in a challenging market-share environment compared to other two-wheeler peers.
Earlier this month, HSBC's Yogesh Aggarwal assigned a 'Reduce' rating with a target price of Rs 23.57 per share. Investec's Shubham Jain holds a 'Hold' rating with a target price of Rs 34.37, while Ambit Capital's Sushrut Ghalsasi has a 'Sell' rating and a target price of Rs 28.48.