Ola Electric Mobility has staged a sharp rebound, with shares rallying nearly 29% over the last five sessions amid renewed optimism around the electric vehicle (EV) sector and expectations of Goods and Services Tax (GST) rate rationalisation.

On Wednesday, shares of the Bhavish Aggarwal-led company jumped as much as 14.7% to ₹51.40 on the BSE, supported by strong volumes as 4.37 crore shares changed hands. The company’s market capitalisation rose to ₹22,535 crore.

Despite the recent uptrend, the auto stock remains deep in the red. It has declined 63% over the past year, 17% in the last six months, and 41% so far in 2025. The counter hit a 52-week low of ₹39.58 on July 14, 2025, compared with a high of ₹157.53 in August 2024.

The recent rally in Ola Electric aligns with broader gains in the Nifty Auto index, fueled by expectations of GST reforms. In a major boost to the sector, the Union government is believed to have recommended lowering GST on small cars and two-wheelers to 18% from the current 28% slab.

“GST on small petrol cars less than four meters in length and having an engine capacity of less than 1,200 cc has been recommended to be reduced to 18% from the current 28%. Similarly, GST on two-wheelers with an engine capacity below 350 cc has been proposed to be cut to 18% from 28%,” a source told Fortune India.

Investor sentiment was further bolstered by management commentary during the company’s annual Sankalp event on August 15, 2025. Ola announced plans to integrate its indigenously developed ‘4680 Bharat Cell’ into its vehicles, beginning with the S1 Pro+ (5.2 kWh) and Roadster X+ (9.1 kWh) from September, alongside price cuts of ₹30,000-₹35,000. The company also unveiled the upcoming S1 Pro Sport scooter, set to launch in early 2026, and outlined plans to adopt an in-house developed ‘ferrite motor’ free from rare-earth magnets.

These new product launches come as the company grapples with a declining market share in the electric two-wheeler segment. Once India’s top-selling EV scooter maker in FY25, Ola has since ceded ground to rivals such as TVS Motor Company and Bajaj Auto in Q1 FY26.

On the earnings front, Ola Electric’s net loss widened 23.3% year-on-year to ₹428 crore in Q1 FY26, while revenue from operations halved to ₹828 crore from ₹1,644 crore a year earlier.

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