Outlook Business Desk
Bhavish Aggarwal-led Ola Electric has been struggling with increasing challenges in recent months. From regulatory issues and customer grievances to major losses and insolvency petitions.
Rosmerta Digital Services and Rosmerta Safety Systems have filed insolvency proceedings against Ola Electric over unpaid dues. Rosmerta Digital Services claims over Rs 22 crore while Rosmerta Safety Systems seeks around Rs 2.5 crore.
The shares of Ola Electric have fallen by over 41% year-to-date, with a sharp 55% decline in the past six months. Over the last 3 months, the stock has dropped by 46%. Since its IPO debut in August 2024, the company's shares have drop more than 65% from their peak. Currently, Ola Electric's stock is trading at Rs 47 per share.
Ola Electric reported a sharp rise in losses, posting a net loss of Rs 564 crore in Q3 FY25, up from Rs 376 crore in the same period last year. The company's operational revenue also saw a 19% year-on-year decline falling to Rs 1,045 crore from Rs 1,296 crore in Q3 FY24.
Ola Electric's net loss increased from Rs 495 crore in Q2 FY25, while revenue declined from Rs 1,214 crore in the previous quarter. To manage expenses, the company introduced significant discounts on scooters. Despite these cost-cutting measures, total expenses dropped to Rs 1,505 crore from Rs 1,593 crore in Q2.
Ola Electric's stock has dropped nearly 20% below its IPO price of Rs 76 falling to Rs 59 on February 18. Its market cap now stands at approx. Rs 26,720.81 crore.
The Securities and Exchange Board of India (SEBI) issued a warning to Bhavish Aggarwal for violating disclosure norms after he shared the company’s business plan on social media before informing stock exchanges. In its warning, SEBI stated that the company’s actions failed to provide equal, timely, and cost-effective access to information for all investors.
The Central Consumer Protection Authority (CCPA) had issued a show cause notice to Ola Electrics in October last year for alleged violation of consumer rights, misleading advertisement and unfair trade practices.