Ola Electric, once hailed as a frontrunner in India’s electric vehicle (EV) revolution, is facing turbulent times. The company’s stock plunged 7.42% to an all-time low of ₹46.76, marking a staggering 45% decline in 2025 so far. This sharp downturn came in the wake of Rosmerta Digital Services Ltd. filing an insolvency petition against Ola Electric Technologies Pvt. Ltd., a wholly-owned subsidiary of Ola Electric Mobility Ltd.
Understanding the Insolvency Filing T
he insolvency proceedings stem from alleged payment defaults by Ola Electric Technologies to Rosmerta Digital Services, which provides vehicle registration services. The petition, filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), has been presented before the Bengaluru Bench of the National Company Law Tribunal (NCLT), sparking concerns among investors about the financial stability of the EV giant.
Ola Electric’s Stand and Strategic Moves
Ola Electric has firmly contested the claims and is seeking legal counsel to challenge the allegations. The company has indicated that it was renegotiating agreements with its partners, including Rosmerta, in a bid to streamline expenses and improve registration efficiency. While this could signal a cost-optimization strategy, the insolvency petition has added to the mounting challenges facing the company.
Financial Performance Under Pressure
The company’s financial performance has been under scrutiny. In Q3 FY2024, Ola Electric reported a widening consolidated net loss of ₹564 crore, compared to ₹376 crore in the same quarter of the previous year. Revenue from operations also dipped to ₹1,045 crore from ₹1,296 crore. Analysts cite increased competition and service-related costs as key contributors to this downturn, which has seen them plumb new depths.
Interestingly, despite financial setbacks, Ola Electric achieved its highest-ever e2W registrations at 3.33 lakh units, a 37.5% increase year-on-year. This indicates underlying market demand, but sustaining growth amidst operational and financial turbulence will be critical.
Market Sentiment and Analyst Outlook
Market sentiment has been overwhelmingly bearish. Analysts warn that if sales volumes don’t recover swiftly, it could signal deeper concerns about product acceptability. “Ola Electric has launched vehicles across segments, yet volume stability is absent. If the company fails to leverage the ongoing EV momentum, negativity will persist,” noted Vinit Bolinjkar, Head of Research at Ventura Securities.
Technically, the stock has been on a persistent downtrend post-IPO high of ₹157, with analysts now eyeing a further dip towards ₹34 if the negative momentum continues.
What Lies Ahead
For Ola Electric, the road ahead is fraught with challenges. Restoring investor confidence requires demonstrating resilience through strategic partnerships, financial prudence, and product performance. As the EV market accelerates, the company must stabilize operations and build a compelling narrative of innovation and reliability if it is to reaffirm its position as a leader in India’s electric mobility landscape.
