Listed EV maker Ola Electric is facing insolvency petitions from two of its suppliers, with the Bhavish Aggarwal-led company saying the matter stems from an ongoing arbitration over warranty and performance-related disputes involving supplied parts.
The clarification came after media reports said two suppliers of the company – Anevolve Mando E-Mobility Pvt Ltd and Sterling E-Mobility Solutions Pvt Ltd – had approached the National Company Law Tribunal over alleged unpaid dues, triggering a nearly 5% decline in Ola Electric’s share price yesterday.
Responding to a query from the stock exchanges, Ola Electric said it had earlier raised warranty and performance concerns regarding certain parts supplied by the two vendors.
As the issues remained unresolved, the company initiated arbitration proceedings and also moved the Commercial Court in Bengaluru under the Arbitration and Conciliation Act, 1996, seeking interim relief until arbitral tribunals are constituted.
The company said the suppliers filed insolvency petitions under Section 9 of the Insolvency and Bankruptcy Code following the initiation of the arbitration proceedings.
According to Ola Electric, the claims relate to “genuine pre-existing disputes” that are already under arbitration, and it is contesting the petitions while taking appropriate legal action.
Shares of Ola Electric were trading 3.33% lower at ₹40.99 on the BSE at 15:05 IST. The company’s market capitalisation stood at ₹18,930 Cr (about $1.98 Bn) at the time.
The petition comes at a time when Ola Electric is attempting an operational turnaround after a challenging 18 months or so. The company saw its sales and market share plummet and losses stay elevated amid rising customer complaints during this period.
In March last year, Ola Electric’s registration service provider Rosmerta Group also filed an insolvency petition against the company. The two companies later reached a settlement and the insolvency petition was withdrawn.
On the financial front, Ola Electric managed to narrow its net loss 43% YoY to ₹500 Cr in Q4 FY26, while revenue fell 57% to ₹265 Cr due to lower deliveries.
Deliveries declined 61% to 20,256 units, although the company reported its first positive quarterly operating cash flow of ₹91 Cr, supported by improved margins, PLI incentives and tighter cost controls.
Going ahead, Ola Electric said it aims to regain a 15% to 20% market share over the next six months, expand its electric motorcycle business, and increase the capacity of its gigafactory to 6 GWh in Q1 FY27.
The company also completed its qualified institutional placement (QIP) last month, raising ₹780.24 Cr. The fundraise forms part of Ola Electric’s broader plan to raise up to ₹1,500 Cr to strengthen its balance sheet and support investments in manufacturing, R&D, supply chain, retail expansion, service infrastructure and battery cell manufacturing.
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