Why Ola Electric shares are up 10% today — here’s the reason

Shares of Ola Electric surged more than 10 per cent on Wednesday after the company said its in-house developed Lithium Iron Phosphate (LFP) battery cell is ready for deployment. The stock rose to an intraday high of Rs 31.72, adding about Rs 1,275 crore to its market capitalisation and taking the total valuation close to Rs 14,000 crore.

At around 2:30 PM, the stock was trading at Rs 30.59, up Rs 1.76 or 6.10 per cent. It opened at Rs 30.00 and touched a low of Rs 29.23 during the session.

Despite the recent rebound, the stock remains under pressure in the long term. It is still down about 58 per cent from its IPO price of Rs 76 and nearly 80 per cent below its all-time high of Rs 157.4 touched in August 2024.

Add Zee Business as a Preferred Source

Why the stock is rising

The rally comes after founder Bhavish Aggarwal announced on X that the company has developed its 46100 format LFP cell. He said the new cell is larger than the current NMC cell and will start entering Ola’s products from the next quarter.

The announcement signals progress in Ola Electric’s efforts to build an in-house battery ecosystem, which is seen as a key driver for cost efficiency and long-term competitiveness.

Cheaper EVs in focus

The company said the new LFP cell could help reduce costs and improve affordability of electric vehicles. It also aims to accelerate EV adoption and support the company’s broader energy storage ambitions.

Aggarwal said the company is focusing on removing barriers to EV adoption through customer offers, service guarantees, and buyback programmes. Passing on benefits from government incentives such as the Production Linked Incentive (PLI) scheme is also aimed at improving affordability.

Gigafactory ramp-up underway

Ola Electric said its Gigafactory scale-up is progressing well. Thousands of vehicles powered by its 4680 Bharat Cells are already on Indian roads and have clocked millions of kilometres.

The Gigafactory currently has a capacity of 2.5 GWh, which the company plans to expand to 6 GWh. The newly developed LFP cell, however, remains subject to regulatory approvals.

A company spokesperson said the development marks a key milestone in building an advanced EV and energy ecosystem in India, with LFP technology expected to play a critical role in driving affordability and scale.

Financial performance remains mixed

In its regulatory filing, Ola Electric reported a consolidated net loss of Rs 487 crore for the quarter, narrowing from Rs 564 crore in the previous quarter.

However, revenue from operations declined sharply by 55.02 per cent year-on-year to Rs 470 crore. The company delivered 32,680 units during the quarter ended December 31, 2025, it reported.

As per filing, On the positive side, the company reported a record consolidated gross margin of 34.3 per cent, expanding 15.7 percentage points year-on-year, supported by its vertically integrated model and improving platform economics.