Ola Electric shares fall 7% on profit booking after 40% three-day rally

Shares of Ola Electric Mobility fell as much as 7% on Monday, hitting an intraday low of Rs 37.96, as investors booked profits after a sharp 40% rally over the previous three sessions.

The stock’s rally prior to this correction was driven by a series of positive developments and strong operational momentum.

Ola Electric recently made key progress by getting its in-house LFP battery ready for production, which could lower EV costs and boost adoption. It also secured PLI certification for a key model, strengthening its eligibility for government incentives. Meanwhile, operations are improving sharply, with March 2026 showing a strong demand recovery as orders and registrations surged significantly, indicating a clear turnaround in business performance.

Adding to the momentum, March also saw Ola Electric achieve a historic milestone, as it became the first EV brand in India to surpass 1 million cumulative registrations, according to VAHAN data. This landmark achievement not only underscores the company’s scale but also signals a defining moment for India’s rapidly evolving electric vehicle ecosystem.

Before the recent rally, the stock still had some underlying concerns, mainly around fundamentals and sustainability of growth.

The company is not yet consistently profitable, reporting a consolidated net loss of about Rs 487 crore in the December quarter. At the same time, its revenue trend has been weakening, declining over the last few quarters, from around Rs 896 crore in June 2025 to Rs 756 crore in September, and further down to ₹504 crore in December. This indicates pressure on business performance despite recent optimism.On the positive side, institutional interest has slightly improved. FII holdings increased to 4% in December 2025 from 3% in the previous quarter, while mutual funds maintained their stake at 5.5%, suggesting some confidence but not aggressive buying.From a technical perspective, the stock looks overheated in the short term. The RSI is around 80.8, which is considered strongly overbought, implying that a pullback or correction is possible. Although the stock is trading above most short- and mid-term moving averages (showing bullish momentum), it is still below key long-term averages (150 and 200 DMA), indicating that the long-term trend is not fully strong yet.

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