For a company that once promised to electrify Indian mobility, Ola Electric seems to be facing one bump after another in FY 2025-26. Its stock fell over 4% on March 10, slipping to ₹54.11 on the BSE—just inches away from its 52-week low of ₹53.71.
The latest blow? Regulatory heat. A Bloomberg report revealed that Ola Electric is under scrutiny by transport authorities for alleged violations of India’s Motor Vehicles Act. Raids, showroom closures, vehicle seizures, and show-cause notices have followed, triggering investor concerns and pushing the Ola Electric share price further down.
Let’s unpack what’s fueling this selloff.
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The raid report and missing trade certificates
According to the report, the issue stems from a lack of trade certificates across Ola Electric showrooms. Under India’s Motor Vehicles Act, any showroom keeping unregistered vehicles must hold a valid trade certificate.
However the investigation found that out of approximately 3,400 Ola showrooms, only about 100 had the required certification—meaning 95% of the locations lacked compliance.
This has led to:
- Raids across multiple Indian states
- Vehicle seizures
- Closure of several showrooms
- Show-cause notices from transport authorities
While Ola Electric clarified that its “experience centres” are for customer engagement and not direct sales, the explanation hasn’t calmed market sentiment. At least six transport officials are reportedly probing the matter further.
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Stock performance:
The impact on the Ola Electric share price is hard to miss.
| Time Period | Change in Share Price |
| March 10, 2025 (Intra-day) | -4.4% (Low: ₹54.03) |
| 2025 YTD | -36% |
| Last 6 months | -52% |
| Since August 2024 listing | -Over 60% from peak |
And it’s not just regulatory pressure. Ola has also been grappling with layoffs, falling market share, and missed targets—making this a compounded issue.
Layoffs, losses and falling sales
Just days before the raids made headlines, reports suggested that Ola Electric was planning to lay off over 1,000 employees to manage rising costs. The company has also been facing quality and service-related complaints, along with a delay in its electric motorcycle launch.
Q3 FY25 Financial Snapshot:
| Metric | Value |
| Net Loss | ₹564 crore |
| Previous Quarter Net Loss | ₹495 crore |
| Net Loss Q3 FY24 | ₹376 crore |
| Revenue (Q3 FY25) | ₹1,045 crore |
| Revenue (Q3 FY24) | ₹1,296 crore |
| Revenue Drop YoY | -19.36% |
Missing sales targets
Despite ambitious goals, Ola Electric sold just 25,000 units in February 2025, far below the 50,000-unit monthly target set by CEO Bhavish Aggarwal to achieve EBITDA breakeven.
| Target Sales (Monthly) | Actual Sales (Feb 2025) |
| 50,000 units | 25,000 units |
This shortfall puts additional pressure on the company’s growth and profitability roadmap—raising more questions around its business strategy.
Investor sentiment takes a hit
For retail and institutional investors, the unfolding events have made Ola Electric one of the most volatile picks on the exchange in recent months. From a stock that created a buzz during its listing to a company facing compliance issues and financial strain, the shift in narrative has been steep.
While Ola Electric shares news continues to make headlines, the stock seems to be losing investor trust. Over 60% fall from its peak is a clear reflection of this sentiment.
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What’s next for Ola Electric?
The company has tried to defend itself, calling the raid-related findings “misplaced and prejudiced.” It also maintains that its unregistered inventory is stored at compliant distribution centres and not at retail outlets.
But until these concerns are formally resolved, the cloud of uncertainty around Ola Electric share analysis will likely persist.
Here’s a snapshot of key challenges ahead:
| Challenge | Impact |
| Regulatory scrutiny | Legal and reputational risk |
| Lack of trade certificates | Operations at risk across states |
| Sales shortfall | Revenue pressure delayed breakeven |
| Mounting losses | Investor scepticism |
| Employee layoffs | Morale and productivity concerns |
| Market share loss to rivals | Competitive disadvantage |
Final thoughts
What started as a bold move to revolutionise India’s electric mobility space is now facing serious roadblocks. Whether it’s the regulatory heat, the shrinking Ola Electric share price, or missed business targets, the company has a tough road ahead.
For investors, this could either be a temporary dip or a red flag, depending on how Ola responds to these challenges in the coming quarters.
But one thing’s for sure—FY 2025-26 is going to be a make-or-break phase for Ola Electric.
