Ola Electric share price fell sharply on Tuesday, January 6, ending a brief winning streak. The stock dropped as much as 8% from the day’s highs during intraday trade, snapping a three-session rally that had delivered gains of around 22%. The decline came amid high trading activity and renewed concerns about the company’s long-term performance.
Ola Electric shares had risen strongly over the previous 3 trading sessions, attracting short-term buying interest. However, Tuesday saw profit booking set in, pushing the stock lower. Trading volumes during the session were heavy, with around 19.35 crore shares changing hands by early afternoon.
Despite the recent rally, the stock remains under pressure when viewed over a longer period. With the latest fall, Ola Electric share price is now nearly 73% below its post-listing high of ₹157. The shares are also trading about 44% lower than their IPO price of ₹76, highlighting the scale of value erosion since listing.
Following the intraday decline, Ola Electric’s market capitalisation slipped below ₹19,000 crore. The fall reflects ongoing investor caution around the company’s growth outlook, margins, and execution challenges, despite signs of improving sales momentum in recent months.
The stock’s performance shows that while short-term rallies are possible, sustained confidence has yet to return. Investors appear to be balancing improving operational indicators against weaker financial guidance.
On the operational front, Ola Electric reported better vehicle registration numbers in December. According to VAHAN data, the company registered 9,020 vehicles during the month. Its market share improved to 9.3% in December from 7.2% in November 2025.
The company also indicated that its market share in the second half of December rose further to nearly 12%. This improvement was supported by Hyperservice, its service-focused initiative aimed at improving customer experience and after-sales support. These numbers point to a pickup in demand momentum, even as financial performance remains under scrutiny.
Investor sentiment has been impacted by Ola Electric’s revised guidance. At the end of the second quarter, the company cut its revenue and margin expectations for the full financial year. It now expects revenue in the range of ₹3,000 crore to ₹3,200 crore, significantly lower than its earlier estimate of ₹4,200 crore to ₹4,700 crore.
Auto business margins are now guided at around 5%, compared with earlier expectations of above 5%. The reduced outlook has raised concerns about profitability and scalability in a competitive electric vehicle market.
Read more: Top SIP Stocks for January 2026: Hindalco, BEL, NTPC, and Others Based on 5Y CAGR and D/E Ratio.
Ola Electric’s sharp fall on Tuesday highlights the fragile nature of the recent rally. While improving sales and market share offer some positives, weaker guidance and the steep decline from past highs continue to weigh on investor confidence. The stock’s near-term direction is likely to depend on whether operational gains translate into stronger and more consistent financial performance.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Jan 6, 2026, 12:41 PM IST
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