Electric vehicle company Ola Electric is facing a difficult phase as the company struggles with falling sales, rising losses, and growing concerns over its business practices. At the same time, Ola Electric is trying to strengthen its finances by investing more money into its subsidiaries and looking for fresh funding from investors.
The latest developments have raised serious questions among investors about how the company plans to survive in India’s highly competitive electric vehicle market.
Ola Electric Approves ₹2,000 Crore Investment in Subsidiaries
On May 15, 2026, Ola Electric’s board approved an internal investment of ₹2,000 crore into two of its wholly-owned subsidiaries. Out of this amount, ₹1,500 crore will go to Ola Electric Technologies Private Limited (OET), while ₹500 crore will be invested in Ola Cell Technologies Private Limited (OCT).
The investment will happen through Compulsory Convertible Preference Shares (CCPS) priced at ₹10 each. The process is expected to be completed by May 2027, and Ola Electric will continue to own 100% of both companies.
OET handles the manufacturing and supply of electric vehicles, while OCT focuses on battery and cell manufacturing. Industry experts believe this move is aimed at strengthening the company’s EV and battery business at a time when the company is under heavy financial pressure.
Apart from this internal funding, reports suggest Ola Electric is also trying to raise another ₹2,000 crore by selling a minority stake in its battery business, OCT, to global investors and sovereign wealth funds.
Sales and Revenue Fall Sharply
While the company is trying to arrange more funds, its business performance has weakened significantly.
In Q3 FY26, Ola Electric delivered only 32,680 electric scooters and bikes. This was a huge 61% drop compared to 84,029 units delivered during the same period last year.
The company’s revenue also fell badly. Operating revenue dropped 55% year-on-year to ₹470 crore. Experts say this shows that demand for Ola Electric vehicles has slowed down sharply.
At the same time, the company’s cash burn is increasing rapidly. Ola Electric is reportedly spending far more money than it is earning, which has increased concerns about its financial stability.
Reports also suggest the company’s EBITDA margin has turned deeply negative, meaning Ola Electric is losing money on a large number of vehicles it sells. Analysts believe the company may continue depending on fundraising and investor money to keep operations running smoothly.
Even after raising ₹5,275 crore through its IPO, Ola Electric is still facing major financial stress.
Questions Over Use of IPO Funds
Another major issue creating controversy is how Ola Electric used money raised from its IPO.
Earlier, the company had told investors that a large part of the IPO funds would be used to expand the capacity of its battery Gigafactory project. However, reports later claimed that around ₹1,228 crore was shifted away from the Gigafactory plan and redirected towards general corporate purposes and business operations.
This has led to criticism from market experts and investors, who believe the company changed its spending priorities after listing on the stock market.
The issue has also increased concerns about transparency and long-term planning within the company.
Governance and Accounting Concerns Increase
Apart from financial troubles, Ola Electric is also facing serious governance and accounting-related concerns. A recent risk probe reportedly highlighted several high-risk issues linked to accounting systems, inventory checks, and related-party transactions. One of the biggest concerns was that the audit trail feature in the accounting software was reportedly disabled. Audit trails are important because they help track changes made in financial records and prevent possible fraud.
The report also claimed that inventory worth hundreds of crores at distribution centres and stores was not physically verified by management. In another controversy, market regulators reportedly questioned the company after Ola Electric announced “25,000 units sold” in a press release. Later, the company reportedly clarified that these numbers were actually bookings and not completed deliveries.
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Questions have also been raised about related-party transactions involving promoter-linked companies and the company’s handling of intangible assets. Meanwhile, the Central Consumer Protection Authority (CCPA) is also reportedly investigating thousands of customer complaints related to vehicle quality and service support.
Share Price Remains Weak
Due to all these concerns, Ola Electric shares have remained under pressure in the stock market.
As of May 15, 2026, the company’s share price was trading around ₹36 on the NSE, although the stock has seen sharp ups and downs in recent trading sessions.
Despite the ongoing problems, Ola Electric continues to focus on expanding its battery business and EV operations. Reports suggest the company is also in talks with global automobile companies to supply battery cells in the future.
However, with falling sales, heavy losses, regulatory scrutiny, and investor concerns growing stronger, Ola Electric now faces one of the toughest phases since becoming a public company.