Ola Electric Mobility has secured shareholder approval to raise up to ₹1,500 crore via a mix of further public offer, rights issue, QIP, private placement or other securities, as the listed EV maker scrambles to stabilise finances, ramp up its cell and energy-storage bets, and stem a steep slide in its share price. The fundraising nod comes even as the company battles slowing scooter sales, mounting investor concerns, and growing criticism over product quality and after‑sales service.
Funding Plan and Pivot to “Energy Company”
According to its exchange filing and Q2 FY26 shareholder letter, Ola Electric plans to deploy the fresh capital to:
- Scale its cell manufacturing business (4680 Bharat cells)
- Expand battery energy storage systems (BESS) under the Ola Shakti brand
- Strengthen post‑sales infrastructure and new product development
- Shore up cash reserves and work towards EBITDA breakeven.
Key operational updates from Q2 FY26:
- Commissioned 2.5 GWh of cell capacity; targets 5.9 GWh by March 2026 and 20 GWh by FY27.
- Launched Ola Shakti home BESS in October; deliveries from January 2026, with revenue guidance of ₹100 crore in Q4 FY26 and ₹1,000–2,000 crore annually in FY27.
- Plans to enter containerised commercial and utility‑scale BESS (100 kWh to 5 MWh systems).
- Started integrating in‑house 4680 cells into its scooters; aims to migrate the entire fleet to in‑house cells within 6–9 months.
Financials: Losses Narrow, But Revenue Slumps
For Q2 FY26:
- Revenue from operations: ₹690 crore, down 43% YoY from ₹1,214 crore in Q2 FY25.
- Consolidated net loss: ₹418 crore, 15% lower than ₹495 crore a year earlier.
- Automotive (EV) segment EBITDA: Turned marginally positive at ₹2 crore versus an EBITDA loss of ₹162 crore in Q2 FY25—achieved largely by prioritising margins over market share and pruning discounts.
- Cash burn: Despite reduced burn, cash reserves fell by ₹294 crore in Q2 FY26.
Analysts highlight a tough trade‑off: Ola Electric has improved unit economics but at the cost of topline contraction, exposing it to market‑share erosion just as legacy OEMs like TVS and Bajaj Auto ramp up their EV portfolios.
Market‑Share Slide and Stock Crash
- September 2025 VAHAN data shows Ola Electric’s high‑speed scooter registrations at 13,374 units, a 46% YoY decline, pushing it to #4 behind TVS, Bajaj, and Ather.
- Its market share has collapsed from over 50% a year ago to almost 20% or lower, with some analyses pegging its 2025 YTD share at just 1.24% of the overall two‑wheeler market.
- The company’s stock has plunged over 50% year‑to‑date and more than 70% from its post‑listing high, with multiple brokerages shifting to cautious or “sell/strong sell” ratings, citing weak financials, volatile sales, high debt obligations (~₹550–620 crore expected in FY26), and execution risk around the energy pivot.
The Road Ahead: Can the “Energy Pivot” Work?
Founder Bhavish Aggarwal is betting that repositioning Ola Electric as a broader energy and cell‑tech company, rather than only a scooter OEM, will unlock a more sustainable and globally relevant business model. If it can:
- Stabilise EV quality and service,
- Successfully commercialise its in‑house 4680 cells, and
- Scale BESS offerings like Ola Shakti in homes, industry, and utilities,
then the ₹1,500‑crore raise and ongoing capex could eventually look prescient.
For now, however, investors and customers are signalling caution. Weak revenue, ongoing losses, reputational damage, and a collapsing market share mean Ola Electric Mobility is navigating one of the most challenging phases in its short public‑market life. Its next few quarters—on both product reliability and financial performance—will be critical in determining whether this is a temporary wobble or a deeper structural slide.
Read this: Ola Electric Is Planning to Launch Its EV Car, Netizens Say: “Fix Your Scooters First”
