Shares of Ola Electric Mobility Ltd. extended their losses for a second straight session on Monday, dropping 6.45% to reach a low of Rs 41.60. The decline comes as the electric vehicle (EV) manufacturer's stock continues to be listed under the long-term Additional Surveillance Measure (ASM) framework on both the BSE and NSE.
Exchanges implement the ASM framework to caution investors about heightened price volatility and to encourage careful consideration before trading. This measure signals to the market that the stock requires additional scrutiny due to unusual price movements or other factors.
Operational Improvements & Market Scrutiny
The recent dip in Ola Electric's stock price occurred despite the company reporting significant operational improvements. According to VAHAN data, the pure-play EV maker nearly doubled its vehicle registrations for the June quarter of FY27 on a quarter-on-quarter basis. Ola Electric registered 43,719 vehicles in Q1 FY27, a substantial increase from 22,252 vehicles in Q4 FY26. June 2026 alone saw 16,144 registrations, marking the company's strongest monthly performance in recent quarters.
The company attributed this sequential growth to improvements in retail execution, customer demand, and product availability, emphasizing a positive trajectory in India's rapidly expanding electric two-wheeler market.
Battery Manufacturing Milestone
Further bolstering its long-term prospects, Ola Electric announced last month that its subsidiary received Bureau of Indian Standards (BIS) certification for its indigenously developed LFP 46100 cylindrical cell. This achievement represents a significant milestone in the company's ambitions for battery manufacturing, aiming for greater self-reliance and potential competitive advantage.
Analyst Perspectives on Ola Electric
Despite these positive developments, analysts highlight ongoing challenges. Ravi Singh, Chief Research Officer at Master Capital Services, noted that while Ola Electric is aggressive in its expansion and battery manufacturing plans, it continues to face concerns regarding service quality, execution, and overall profitability. Singh advised investors to closely monitor sales figures, margin improvements, and progress in expanding the product portfolio, linking long-term prospects to India's growing EV adoption and sustained earnings growth.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, commented on the stock's elevated volatility, suggesting it is currently suitable only for investors with a high-risk appetite. However, market veteran Arun Kejriwal offered a more optimistic view, stating that Ola Electric's ongoing cell development efforts could provide the company with a crucial competitive edge in the longer term.