Ola Electric vs Ather Energy shares: Which EV bet looks stronger for your portfolio right now?

In less than five months, Ather Energy’s shares have climbed more than 66% from their listing price, while rival Ola Electric Mobility has shed nearly a quarter of its value since its debut last year. Both companies are racing to dominate India’s fast-growing electric two-wheeler market, but their diverging stock charts and financial results now force investors to ask: which one deserves a place in their portfolios?

Ather Energy’s shares, listed at Rs 326.05 on May 6 this year against an IPO price of Rs 321, closed at Rs 542.55 on September 12. That marks a gain of about 66.4% in just four months. By contrast, Ola Electric Mobility, which debuted on August 9, 2024, at Rs 76 a share and hit Rs 88.5 on listing day, has since lost ground. Its stock was at Rs 58.90 on September 12, down roughly 22.5% from the IPO price.

Despite its lower price per share, Ola commands a larger market capitalization at Rs 25,181 crore, compared with Ather’s Rs 20,272 crore, reflecting its scale and larger outstanding shares.

Mixed financial picture

The most recent quarterly results highlight the contrast. Ather reported a net loss of Rs 178 crore for April–June, narrower than the Rs 183 crore loss a year earlier. Revenue from operations surged nearly 79% year-on-year to Rs 645 crore, while unit sales nearly doubled to 46,000. The company also reported a sharp improvement in EBITDA margin to 16%, compared with negative 33% a year ago.

Ola, meanwhile, reported a wider consolidated net loss of Rs 428 crore in the same quarter, up from Rs 347 crore last year. Revenue halved to Rs 828 crore, down from Rs 1,644 crore a year earlier, though the company managed to cut expenses by 42% to Rs 1,065 crore. Still, its EBITDA margin worsened to -28.6% from -12.5% a year earlier.

Analysts divided

Shrikant Chouhan, Head of Equity Research at Kotak Securities said, “For Ola we have a target of Rs 30 for 12 months.” On technicals, he said, “For Ather support exists at 510 and 480. Resistance exists at 590 and 660. For Ola support exists at 55 and 50. Resistance exists at 63 and 69.”

He also noted the chart setups diverge. “For Ather the trend is strong, it is forming a series of higher top and higher bottom, which is bullish for it. For the Ola trend is mild bullish, it is in the pull back mode, retracing the recent selloff that the stock has witnessed from the highs of 157.40.”

Chouhan added that Ola is unlikely to turn profitable soon. “Ola, we expect net losses to continue in FY26 and FY27.”

Ather’s momentum, Ola’s headwinds

Drumil Vithlani, Technical Research Analyst at Bonanza, said Ather remains in a “strong uptrend with price comfortably holding above short-term and medium-term EMAs.” Vithlani pointed to near-term upside targets of Rs 560–575 while cautioning that “corrections of 10–15% are normal in these phases.”

For Ola, Bonanza’s Sr. Technical Research Analyst Kunal Kamble said, “Ola Electric is witnessing profit booking, with declines likely towards Rs 55, where the 21-EMA is placed, followed by Rs 50.38, where the 50-EMA is positioned.” He advised waiting for the stock to close above Rs 62.05 before considering fresh long positions, which “could open the path for an upmove towards Rs 80.”

Kunal V Parar, VP of Technical Research and Algo at Choice Broking, said Ola’s long-term chart still shows scope for recovery but flagged risks. “A Dark Cloud Cover candlestick pattern has emerged, signaling the possibility of a short-term correction.” Parar expects the stock could slip to Rs 48 before rebounding towards the 70–80 range, with a strict stop loss at 40.

Regulatory tilt

On sectoral dynamics, Khushi Mistry, Research Analyst at Bonanza, said that “recent policy moves now offer clearer, near-term advantages for Ola Electric versus Ather Energy. The GST Council has formally retained a concessional 5% GST on electric vehicles, easing price pressure across the sector. More materially, Ola secured PLI certification for its Gen-3 scooter portfolio in late August, making a large share of its models eligible for incentives that management says will bolster margins from Q2FY26.”

Mistry said that Ather is less favorably placed. “Ather’s CEO Tarun Mehta has publicly urged a review of the auto-PLI framework, arguing some design features exclude key EV makers and limit their access to incentives. In conclusion, with GST relief and Ola’s PLI eligibility improving its near-term cost profile, Ola looks better placed to capture margin upside.”

Investor takeaway

Both companies remain high-risk, high-growth EV bets. Ather’s stock has surged post-IPO on strong revenue growth and margin gains, while Ola’s shares have slid since debut amid widening losses. For investors weighing exposure, the choice comes down to whether to back Ather’s premium positioning and momentum, or Ola’s scale and policy tailwinds.

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(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)