Synopsis: Ola Electric Mobility Ltd rose about 11% in intraday trade after Delhi announced a new EV policy effective July 1. The policy offers tax and registration exemptions for EVs under ₹30 lakh and phased subsidies for e-two-wheelers. It also plans to phase out petrol and CNG vehicles in favour of EVs.
The shares of a Small-Cap company that specialises in vertically integrated electric vehicle (EV) manufacturing and clean energy technology, are in focus as they have rallied upto 11 percent in the day’s trade. In this article, let’s look at the reason for the rally and see whether the stock can head toward its highs.
With a market capitalisation of Rs. 20,452.94 crores in the day’s trade, the shares of Ola Electric Mobility Ltd rose upto 11 percent, making a high of Rs. 44.95 per share compared to its previous closing price of Rs. 40.42 per share.
What Happened
Ola Electric Mobility Ltd, engaged in vertically integrated electric vehicle (EV) manufacturing and clean energy technology, is in the spotlight as they 11 percent in today’s day trade as Delhi introduces a new EV Policy.
The new EV policy, which comes into effect on July 1, provides a 100% exemption on road tax and registration fees for all electric cars with an ex-showroom price of up to Rs. 30 lakh that are registered in the national capital.
To encourage the adoption of electric two-wheelers, the government will also offer purchase incentives. Buyers will receive a subsidy of Rs. 30,000 in the first year, Rs. 20,000 in the second year, and Rs. 10,000 in the third year under the policy.
The policy also outlines a phased transition to electric mobility. From January 1, 2027, only electric autorickshaws will be eligible for new registrations in Delhi. This will be followed by the phase-out of registrations for new petrol and CNG two-wheelers, with only electric two-wheelers being registered from April 1, 2028.
Can the stock head towards its highs?
Ola Electric has shown improving fundamentals and rising institutional interest, which supports a cautiously positive outlook. FIIs increased their stake from 4.0% in March 2026 to 5.12% in June 2026, while DIIs raised holdings from 7.01% to 11.24%, indicating growing confidence from institutional investors.
Operational performance is also gradually improving. Even though the Sales declined, Net losses have narrowed from around Rs. 2,276 crore in March 2025 to nearly Rs. 1,833 crore in March 2026, reflecting better cost control and improved efficiency. If the company sustains momentum with expected Q1 FY27 performance of Rs. 500–550 crore revenue and 40,000–45,000 orders, sentiment could remain supportive.
The company’s revenue declined by 57 percent from Rs. 611 crores in Q4FY25 to Rs. 265 crores in Q4FY26. Meanwhile, Net loss from Rs. 870 crores declined to a loss of Rs. 500 crores in the same period.
On the supply side, the Gigafactory expansion is progressing, with 2.5 GWh of battery capacity already operational and scaling toward 6 GWh. Successful commercialisation and improved utilisation could support margins and strengthen long-term competitiveness.
However, the path to previous highs will depend on execution. Key risks include sustained profitability, competitive pressure in the EV market, and the ability to scale demand consistently.
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