A few years ago, if you wanted an electric scooter in India, your choices were thin and the brands were unknown. Then a company promised to change that sleek scooters, booked online, delivered to your door, built in one of the world's biggest EV factories. That company was Ola Electric, and for a while it looked unstoppable.

Founded in 2017 in Bengaluru by Bhavish Aggarwal, Ola Electric makes electric two-wheelers the S1 range of scooters and, more recently, Roadster motorcycles. It builds them at its Futurefactory in Tamil Nadu and is setting up a Gigafactory to make its own lithium-ion battery cells in India.

The business sells direct to customers, skipping dealers, through 870 experience centres and 431 service centres. It earns on each vehicle plus accessories, software and charging. The idea was bold — own the whole EV stack, from cell to scooter. The execution, as the numbers show, has been a different story. For the full subscription, GMP and listing breakdown, see our Ola Electric IPO analysis, or track its live price on the IPO GMP Live homepage.

Financial Snapshot

This is the part that should stop you. Revenue grew nicely for a while ₹2,631 crore in FY23, then ₹5,243 crore in FY24 as scooter sales took off. Then it went into reverse. FY25 revenue slipped to ₹4,514 crore, and FY26 collapsed to ₹2,253 crore sales literally halved in a single year.

Q4 FY26 was worse still: revenue of just ₹265 crore, down 57% year-on-year. For a company meant to be growing into a giant, a topline shrinking this fast is alarming.

The losses tell their own story. Net loss ran ₹1,472 crore in FY23, ₹1,584 crore in FY24, widened to ₹2,276 crore in FY25, then came down to ₹1,833 crore in FY26 but only because the company shrank, not because it fixed the model.

What I'll credit them with is gross margin, which reached 38.5% in Q4 FY26. That's a real improvement. But the auditor flagged going-concern doubts and weak inventory controls in the FY26 accounts, and the company had to raise fresh money through a QIP at ₹35.86 — about 53% below its IPO price just to shore up a balance sheet carrying ₹2,520 crore of debt. That's not a healthy picture.

Strengths

• It built real manufacturing scale early. The Futurefactory in Tamil Nadu is designed for up to 10 lakh vehicles a year, and Ola was the pure-play EV pioneer that got products on the road before most rivals. That physical base and head start still have value if execution improves.
• Gross margin is moving the right way. Q4 FY26 gross margin hit 38.5%, a strong figure even after the volume drop. It shows the per-unit cost structure is improving, which matters if volumes ever recover.
• It leads the newer e-motorcycle segment. As of FY26, Ola holds roughly 50% market share in electric motorcycles. Losing the scooter crown hurt, but it's still number one in a category that's just opening up.
• It has topped up its cash and cut debt. The June 2026 QIP raised about ₹780 crore, and the company has reduced debt over the past year. That buys time, even if the dilution came at a painful price.

Risks

• Revenue is collapsing, not slowing. Sales fell from ₹4,514 crore in FY25 to ₹2,253 crore in FY26 — a 50% drop with Q4 FY26 down 57% year-on-year. A topline shrinking this hard is the single biggest worry, and there's no clear sign it has bottomed.
• The auditor has flagged going-concern doubt. The FY26 accounts came with going-concern observations, inventory-control weakness and audit-trail issues. When auditors raise going-concern, it means they're not sure the company can comfortably keep operating — that's as serious as red flags get.
• The stock has been destroyed. It listed flat at ₹76 in August 2024, spiked to about ₹157, then crashed to a low of ₹22.25 in March 2026. Even after recovering to around ₹45, it's down roughly 41% from the issue price and about 71% from its peak.
• It lost its lead and keeps diluting. Bajaj's Chetak and TVS's iQube overtook Ola in electric scooters, and the QIP done at 53% below the IPO price shows how much pressure the company is under to keep raising money. Existing shareholders pay for that through dilution.

Should You Buy, Hold, or Sell?

The IPO is two years gone. This is a call on the stock around ₹45 down about 41% from the ₹76 issue price and roughly 71% from its peak.

Conservative investors — stay away. A company with halving revenue, going-concern doubts and a recent discounted fundraise is not where safe money belongs. Full stop.

Moderate investors — also wait. The gross-margin improvement is real, but I'd need to see revenue actually stop falling and the going-concern flag lifted before touching this. Right now it's a falling knife.

Aggressive investors — this is a high-risk turnaround punt, nothing more. If you believe the EV story and trust Ola to fix execution, the low price offers upside — but accept you could lose a big chunk if it doesn't.

Honest take: a bold idea with badly broken execution this is speculation on a turnaround, not an investment in a healthy business.

IPO Objects of the Issue

The fresh issue raised ₹5,500 crore. The ₹645.50 crore offer-for-sale went to selling shareholders (including founder Bhavish Aggarwal and SoftBank), so the company received nothing from that part.

Contact Details

Ola Electric Mobility Ltd. Regent Insignia, 4th Floor, No. 414, 3rd Block, Koramangala Industrial Layout, Bengaluru, Karnataka – 560034 🌐 www.olaelectric.com

IPO Registrar — MUFG Intime India Pvt. Ltd. (formerly Link Intime India Pvt. Ltd.) 📞 +91-22-4918 6270 📧 olaelectric.ipo@linkintime.co.in 🌐 www.in.mpms.mufg.com

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