Ola Electric shares surge 16%, biggest 1-day gain since April; why is the stock rallying despite brokerage downgrades?

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Shares of Ola Electric surged on Tuesday, October 27, rising 16.3% to close at ₹34.80 apiece. The rally marked the stock’s biggest single-day gain since April.
Although there was no immediate fundamental trigger behind the rebound, a sharp spike in trading volumes helped the stock recover from its recent weakness. Around 345 million shares changed hands across the BSE and NSE during the session, nearly 3.2 times the stock’s weekly average volume.
A broader rebound in auto stocks, along with better-than-expected performance by peer Ather Energy, also supported investor sentiment.
Despite Tuesday’s recovery, Ola Electric shares remain down around 4% for the month. Earlier in October, the stock slipped to a five-month low after receiving back-to-back downgrades from global brokerage firms.
Global investment bank Goldman Sachs downgraded Ola Electric Mobility to ‘Sell’ from ‘Neutral’ earlier this week and cut its target price to ₹23 per share from ₹39.28. The brokerage cited a challenging path to free cash flow amid high interest costs, capital expenditure requirements, and prolonged operating losses.
Goldman Sachs said Ola Electric would need to scale up its revenue to 3.6 times to 7.1 times its FY26 level by FY28–FY30 to cover its current capital expenditure and interest-servicing requirements. This comes after the company’s revenue declined 55% in FY26 compared with FY24.
The brokerage also cut its FY27–FY29 revenue estimates for Ola Electric by up to 10%, citing a challenging market-share environment relative to its two-wheeler peers.
Earlier this month, HSBC assigned a ‘Reduce’ rating to the stock with a target price of ₹23.57 per share. Investec’s also maintained a ‘Hold’ rating with a target price of ₹34.37.
Separately, SoftBank’s investment vehicle SVF II Ostrich (DE) LLC sold a total of 3.58 crore rights entitlements (REs) in Ola Electric Mobility through October 26, according to NSE bulk-deal data.
The investment vehicle trimmed its holdings by selling 1.21 crore REs across October 22 and 23 before offloading another 2.37 crore REs on October 26. The transactions took place as the electric two-wheeler maker sought to raise ₹1,000 crore through a rights issue.
Vanguard ESG International Stock also sold 57.05 lakh REs on October 26.
Shareholding data for September 2026 showed that SVF II Ostrich held 54.15 crore shares, representing an 11.70% stake in Ola Electric. Founder Bhavish Aggarwal remained the company’s largest shareholder, with 122.75 crore shares, equivalent to a 26.52% stake.
Meanwhile, Motilal Oswal Financial Services and Calliope Capital Advisors, an investment vehicle associated with Motilal Oswal, applied for a combined 2.39 crore shares under the rights issue on October 22, the opening day.
Disclaimer: We advise investors to check with certified experts before making any investment decisions.
Ksheera Sagar has been working as a Market Research Analyst at LiveMint for the past four years, covering stocks, commodities, and broader financial markets. In this role, he closely tracks daily market movements, corporate earnings, sector trends, and macroeconomic developments. <br><br> He has over a decade of experience in the financial services industry and has previously worked with multiple organisations, including global investment bank J.P. Morgan, bringing strong research experience into the newsroom. <br><br> During his career, he has gained extensive exposure to equity research, market analysis, and financial data interpretation, strengthening his expertise across asset classes and market cycles. <br><br> He is known for his data-driven analysis and crisp, listicle-style market stories that break down complex financial developments across key markets for a wide audience. His strong research skills enable him to write detailed and insightful stories on stocks and sectors, focusing on the underlying factors driving market movements. <br><br> His work combines quantitative insights with clear storytelling, presenting financial developments in a clear and structured manner. Moreover, he enjoys writing multibagger and listicle-style copies. Outside of work, Ksheera enjoys playing the piano and exploring new places. He has a keen interest in travel, music, and continuously learning about global markets and economic trends.
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