Ola Electric Shares Rise 7% Ahead of Q2 Results: What to Expect

Ola Electric’s Earnings Test a Rally Built on Recovery Hopes

Investors are weighing a possible sequential improvement against weaker year-on-year sales and continuing losses.

A strong pre-results move meets a cautious forecast

Ola Electric Mobility shares climbed as much as 7.4% to ₹37 on the BSE during Thursday’s trade, while the stock was up 5.08% at ₹36.19 at the last check in the supplied market update. A combined 99.8 million shares had changed hands on the BSE and NSE by 10.37 a.m., pointing to elevated investor activity ahead of the results.

The rally reflects expectations that the quarter may show improvement from the June quarter, but it does not establish that a turnaround is under way. Kotak Institutional Equities (KIE) estimates net sales of ₹507 crore, down 26.5% year on year but up 11.5% sequentially. The two comparisons tell different stories: a quarter-on-quarter recovery could coexist with a much weaker performance than a year earlier.

Volumes and product mix are central to sales

KIE expects a 20% year-on-year decline in volumes and a 5–6% fall in average selling prices, with an inferior product mix contributing to the pressure. Together, those factors are expected to weigh on revenue even if sales rise from the preceding quarter.

The results will therefore be judged not only by whether revenue improves sequentially, but also by what the reported figures show about demand and the mix of products sold. A better quarter-on-quarter number would be more encouraging if accompanied by signs that the year-on-year decline is easing. The supplied estimates, however, remain forecasts; the company’s reported figures will determine whether they prove accurate.

Lower losses would offer an operating signal

KIE projects a net loss of ₹315.3 crore, which it expects to be narrower both year on year and quarter on quarter. It also forecasts an EBITDA loss of ₹140 crore, compared with ₹200 crore in the year-earlier quarter and ₹170 crore in the previous quarter.

The brokerage attributes the expected sequential reduction in EBITDA losses to operating leverage, cost-control measures and a higher mix of the Gen-3 platform, partly offset by commodity headwinds. If the reported numbers show narrower losses, investors may look for evidence that the improvement comes from operating progress rather than a temporary change in costs or product mix. The outlook will matter alongside the headline loss.

Technical levels add another test for the shares

Bonanza senior technical research analyst Virat Jagad said the stock had formed a base around ₹30–32 and reclaimed its 20-, 50- and 100-day exponential moving averages. He cited an RSI near 55 and stronger volume as signs of improving momentum, while noting that the shares remained below the 200-day EMA near ₹38.

Jagad identified ₹35–36 as near-term support and ₹38–42 as a resistance zone. A sustained move above that range could strengthen the technical recovery case, in his view. These levels describe market positioning, not a guarantee of direction; the earnings release could shift attention back to sales, losses and the company’s operating performance.

Key Highlights

• Ola Electric shares rose as much as 7.4% to ₹37 during Thursday’s trade.
• Combined BSE and NSE volume reached 99.8 million shares by 10.37 a.m.
• KIE estimates September-quarter net sales of ₹507 crore, down 26.5% year on year and up 11.5% sequentially.
• The brokerage forecasts a ₹315.3 crore net loss and a ₹140 crore EBITDA loss.
• Technical levels cited by Bonanza include support at ₹35–36 and resistance at ₹38–42.

Investor Note: The pre-results rally and brokerage estimates are not substitutes for reported performance. Investors may want to compare actual sales, product mix and loss reduction with these forecasts, while treating technical levels as reference points rather than assured outcomes.