Ola Electric’s financial disclosures for FY25 have brought the EV giant back under scrutiny. Statutory auditor BSR & Co. LLP flagged “material weaknesses” in inventory management and suspected employee fraud, compounding an already turbulent year marked by regulatory probes and customer backlash.
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Inventory Verification Gaps
According to the annual report, Ola Electric failed to physically verify electric two-wheelers and spare parts worth ₹362 crore across its stores and state distribution centres. The auditor noted that the absence of proper internal controls could lead to material misstatements in inventory and cost reporting.
Employee Fraud at Subsidiary
The report also revealed a suspected fraud at Ola Electric Technologies Pvt Ltd, a wholly-owned subsidiary. Employees were allegedly involved in siphoning off over ₹1 crore during FY25, raising further concerns about the company’s internal safeguards.
Public Backlash & Regulatory Heat
Beyond financial lapses, Ola Electric faced mounting criticism for poor after-sales service and mismatches in sales figures. In March, transport officials raided over 30 Ola stores across Madhya Pradesh and Maharashtra. The Ministry of Heavy Industries also questioned discrepancies between Ola’s reported sales and actual registrations. While the company claimed 25,000 scooter sales in February, the Vahan portal recorded just 8,600 registrations.
The NSE sought clarifications on the matter, with Ola responding that the higher figures referred to bookings, not deliveries.
Financial Strain & Investor Exit
While Q1 FY26 saw a narrower net loss of ₹347 crore (down 23% YoY), revenue plunged nearly 50% to ₹828 crore. Investor confidence also wavered, with SoftBank trimming its stake to 15.68% after selling over 2% in recent months. Other backers, including Z47 and Tiger Global, have also reduced holdings.
Shares of Ola Electric fell 7.25% on Friday, closing at ₹59.91 on the BSE. With financial leaks, regulatory pressure, and investor exits, Ola faces a critical test of resilience in India’s fast-evolving EV market.