Synopsis:
OLA Electric recorded a sharp fall today as the VAHAAN data reveals that in this month itself, the company is behind its peers on vehicle registrations.
The share of this leading mobility provider are in focus as the company faces problems sustaining its market share. In this article, we will dive more into the details of it.
With a market capitalization of Rs 21,551 crore, the shares of Ola Electric Mobility Ltd made a day low of Rs 48.66 per share, down by 9 percent from its previous day closing price of Rs 53.32 per share. Over the last six months, the stock has corrected by over 18 percent.
Reason behind this fall
According to VAHAN registration data, Ola Electric is now trailing behind its rival Ather Energy in August sales. As of August 20, Ola Electric recorded 9,522 registrations only, while Ather Energy managed to pull ahead with 10,248 registrations. This gap suggests that Ather is gaining stronger traction in the electric two-wheeler market.
In May 2025, Ola Electric registered 18,501 units, which increased to 20,190 units in June 2025, showing strong demand. However, registrations declined to 17,848 units in July 2025, indicating a slight slowdown in sales momentum. And to date it hasn’t even reached to its previous figure.
In Q1 FY26, the company’s deliveries saw a significant decline. Volumes dropped from 1,25,198 units in Q1 FY25 to just 68,192 units in Q1 FY26, marking a sharp 46 percent fall over the period, reflecting a substantial slowdown in demand. However, volumes slightly increased by 33 percent from its previous quarter figure of 51,375 units.
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Guidance and other highlights
For FY26, OLA expects vehicle volumes to be in the range of 3,25,000 to 3,75,000 units and revenue between Rs 4,200 crore and Rs 4,700 crore. Strong demand for new products, including the Gen 3 scooters and the Roadster bike, is expected to drive growth, especially during the festive season.
Additionally, continuous improvements in product quality and BOM (bill of materials) cost by the supply chain, engineering, and manufacturing teams are likely to enhance profitability, with the benefits expected to reflect in the P&L throughout the year.
Ola Electric’s market share has seen significant fluctuations over the quarters. It made a peak of a staggering market share of 48.6 percent in Q1 FY25, which declined to 19.6 percent in Q1 FY26. However, it is a slight improvement from its previous quarter market share in the electric (2W space) from 18.5 percent.
The company plans to achieve a market share of 25-30 percent in India’s two-wheeler electric vehicle market, supported by very high margins. On the flip side, Ather Energy’s market share has shown a strong improvement. In Q1 FY26, it reached 14.3 percent, nearly doubling from 7.6 percent in the same quarter last year. It also inched up from its 13.6 percent share in the previous quarter, indicating steady and consistent growth in its market presence.
Also, Ola Electric launched the 4680 Bharat cell (India’s first indigenously developed Lithium-ion cell), offering 10 percent higher energy density and a 15-year battery life, usable in vehicles, energy storage, and drones. The company plans to roll out this cell starting this Navratri.
Additionally, Ola introduced a ferrite-based motor that eliminates the need for rare earth magnets, reducing dependence on China and addressing supply risks. If this trend keeps up, Ola Electric might find it tough to maintain its lead, especially as Ather Energy is making steady progress.
With Ola seeing a drop in registrations and a shrinking market share, while Ather continues to grow, the next few quarters could hint at a possible change in who’s on top in the electric two-wheeler market.
Written by Satyajeet Mukherjee
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