Ola Electric Mobility shares declined as much as 8% from the day's highs on Tuesday, January 6, snapping a three-session winning streak after delivering substantial gains of 22% over the previous three trading sessions. The stock had been riding on investor optimism following encouraging December business performance data.

Trading Activity and Market Performance

Trading volumes on Tuesday were notably lower, at about 50% of the combined turnover seen on Friday and Monday. However, around 19.35 crore shares had changed hands by 12:15 pm, significantly higher than the 20-day average of 7.34 crore shares traded at that time of the day.

Despite the recent rally, the stock remains sharply lower from its historical highs. With Tuesday's decline, Ola Electric is down nearly 73% from its post-listing high of ₹157.00 and about 44% below its IPO price of ₹76.00 per share.

December Performance Drives Market Confidence

The recent rally was supported by encouraging business updates disclosed by the company. According to VAHAN data, Ola Electric registered 9,020 vehicle registrations in December, contributing to a notable market share increase to 9.3% from 7.2% in November.

More significantly, during the second half of December, market share climbed to nearly 12%, indicating improving demand momentum and the effectiveness of the company's Hyperservice initiative.

Hyperservice Initiative Delivers Operational Improvements

The company's Hyperservice program was specifically designed to address service challenges that emerged during rapid expansion phases. The comprehensive initiative focuses on multiple operational areas including clearing service backlogs, expanding and training the workforce, improving spare parts availability, and enabling customer self-service capabilities.

Revised Financial Guidance and Analyst Coverage

At the end of the second quarter, Ola Electric had cut its revenue and margin guidance for the full year. The company now expects revenue in the range of ₹3,000.00 crore to ₹3,200.00 crore, sharply lower than the earlier projection of ₹4,200.00 crore to ₹4,700.00 crore.

Eight analysts currently track Ola Electric with mixed recommendations. Of these, three have a 'Buy' rating, one recommends 'Hold', while four have a 'Sell' call on the stock. Emkay has the highest price target on the Street at ₹65.00 per share, while Kotak Securities has the lowest target at ₹25.00.

Ola Electric Mobility shares surged as much as 8.2% on Monday to ₹44.28, extending a strong 16% rally in early 2026 as investors responded positively to signs of business turnaround. The momentum reflects renewed confidence in the company's strategic reset after months of service backlogs and operational challenges.

Service Transformation Shows Early Results

The company's Hyperservice program has delivered measurable improvements in customer experience and operational efficiency. This focused service transformation initiative was launched to address service delays and structural execution challenges that had previously impacted customer satisfaction.

According to the company's January 1 statement, Hyperservice has positioned Ola Electric for sustained business turnaround driven by improving customer experience, rising demand, and disciplined operational execution.

Market Share Gains Signal Recovery

VAHAN data reveals significant market share improvements for Ola Electric in December. The company registered 9,020 units, lifting its market share to 9.3% from 7.2% in November 2025. Notably, share in the second half of December climbed nearly to 12%, indicating accelerating momentum.

The company regained top-three position among EV players in nearly a dozen states during December, including key markets such as Tamil Nadu, Uttar Pradesh, Bihar, Jharkhand, Punjab and Haryana. In southern India, Ola expanded its share by approximately 2.5 percentage points between November and December, with Bengaluru alone contributing roughly 4 percentage points of gain.

Product Innovation and Operational Progress

Ola Electric has commenced deliveries of its 4680 Bharat Cell-powered S1 Pro+ 5.2 kWh scooters, which began in November 2025. The new models have received strong early demand and obtained government certification in December, supporting the company's technology roadmap advancement.

Bhavish Aggarwal, Chairman and Managing Director, emphasized the structural nature of improvements: "Our priority has been to fix the fundamentals of service with speed and discipline. Hyperservice is a structurally focused programme, not a short-term fix, and we are already seeing clear outcomes in customer experience, market share, and bookings momentum."

Financial Performance Shows Mixed Signals

For the July-September quarter of FY26, Ola Electric reported financial results reflecting its turnaround phase. While challenges remain, certain metrics showed improvement compared to the previous year.

Significantly, the auto segment achieved positive EBITDA margin of 0.3% in Q2 FY26, compared with -5.3% previously, marking its first quarter of profitability in the core business. This milestone demonstrates progress toward sustainable operations despite overall losses.

Market Outlook

Markets appear to be rewarding early signs of stabilization and execution discipline, even as the company works to sustain momentum beyond early 2026. The combination of improved service metrics, market share gains, and operational progress has restored investor confidence in Ola Electric's turnaround strategy. With upcoming BESS deliveries and continued rollout of 4680-cell vehicles, the company is positioning itself for sustained growth with improving operational leverage.