Synopsis: Ola Electric Mobility Ltd is in the spotlight as it has declined 9% in the day’s trade, as they approved key changes in the finance leadership of the company, followed by legal and operational issues leading to the fall in price overtime.
The shares of a Small-Cap company specialising in designing, manufacturing, and selling electric two-wheelers (e-scooters and e-bikes) and their core components, are down by 9 percent in the day’s trade. In this article lets explore the reason for the fall.
With a market capitalization of Rs. 14,533.68 Crores on Tuesday, the shares of Ola Electric Mobility Ltd declined upto 8.55 percent, reaching a low of Rs. 32.72 compared to its previous close of Rs. 35.78.
What Happened
Ola Electric Mobility Ltd, engaged in designing, manufacturing, and selling electric two-wheelers (e-scooters and e-bikes), and their core components are in focus today as the stock has declined 9 percent in the day’s trade.
Reason for the Fall
Ola Electric Mobility Limited informed that its Board of Directors, in a meeting held on January 19, 2026, approved key changes in the finance leadership of the company.
The Board noted the resignation of Mr. Harish Abichandani, who stepped down as CFO effective at the close of business on January 19, 2026 and the Board placed on record its appreciation for his contributions during his tenure.
The Board also approved the appointment of Mr Deepak Rastogi as Chief Financial Officer (CFO) with effect from January 20, 2026. He will also be part of the company’s Key Managerial Personnel and Senior Management. Mr Rastogi is not related to any director and is not debarred by SEBI or any authority.
What’s Happening in OLA?
Ola Electric’s shares have fallen for a fourth straight month, slipping 10% this month after gains in only the first three trading sessions of the year. The stock has remained largely in a downtrend since its 2024 market debut.
As per the recent update, in a separate regulatory filing on January 15, the Bhavish Aggarwal-led firm secured the Bureau of Indian Standards (BIS) certification and licence for Ola Shakti in a 6 kW/9.1 kWh battery pack powered by 4680 Bharat cells. Ola Shakti is the country’s first residential BESS (Battery Energy Storage System) solution, which is designed, engineered, and manufactured in India.
Loss of Market Share & Stake Sale
Operationally, Ola Electric has lost significant ground over the past year. According to Vahan data, its market share in the electric two‑wheeler segment dropped sharply to 16.1 percent in 2025, down from 36.7 percent in 2024, as rivals such as TVS Motor Company, Bajaj Auto, Ather Energy and Hero MotoCorp expanded their presence and captured a larger share of the market.
Ola said that registrations reached 9,020 units in December, lifting its market share to 9.3% from 7.2% in November 2025. Additionally, VAHAN data shows that the company’s market share climbed further to nearly 12% in the second half of December 2025, signalling a clear acceleration in demand and market share gains.
Recently, SoftBank Group, led by Masayoshi Son, reduced its stake in the company from 15.68 percent to 13.53 percent over the past four months, according to a stock exchange filing.
Regulatory issues and more
In mid-2025, Ola Electric faced significant showroom shutdowns in Maharashtra, India’s top EV market, with reports indicating up to 90% of its stores closed due to operating without mandatory trade certificates for storing unregistered vehicles, leading to government action and regulatory scrutiny, though Ola stated they were working with authorities and that claims were speculative.
Ola Electric’s share price has dropped significantly due to many problems in the company, which includes actual sales and credibility issues with reported sales data. In early 2025, Ola’s claimed sales figures did not match government registration data, leading regulators to investigate the discrepancy and investor confidence weakened.
Another major reason for the share fall has been corporate governance and customer-service problems. Ola’s auditor flagged “material weaknesses” in internal controls, raising concerns about inventory and financial data accuracy, while reports of legal issues like insolvency petitions and regulatory probes into disclosures and business practices added pressure.
At the same time, customer complaints about frequent breakdowns, long repair delays, and poor after-sales service have damaged brand reputation and sales momentum, further eroding investor trust and share value.
Financials
Ola Electric Mobility Limited is an Indian electric vehicle (EV) manufacturer founded in 2017 by Bhavish Aggarwal, who also serves as its CEO. Headquartered in Bengaluru, Karnataka, the company develops and produces electric two‑wheelers along with key EV technologies such as battery packs, motors, and charging solutions.
It operates one of India’s largest and most automated electric two‑wheeler factories, known as the Ola Futurefactory in Tamil Nadu, and has built a wide network of customer experience and service centers across the country.
The company’s revenue declined by 43.16 percent from Rs. 1,214 crore in September 2024 to Rs. 690 crore in September 2025. Meanwhile, the Net loss declined from Rs. 495 crore to Rs. 418 crore during the same period.
The stock is back down towards its all-time low of Rs. 30.76. The stock is down 78 percent from its post-listing high of Rs. 157 and has more than halved from its IPO price of Rs. 76 per share.
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