Ola Electric Investment of Rs 2,000 Crore

Ola Electric has initiated an investment plan of Rs 2,000 crore in its fully owned subsidiaries, Ola Electric Technologies Private Limited (OET) and Ola Cell Technologies Private Limited (OCT), as reported in a recent stock exchange disclosure. The board of the company sanctioned Rs 1,500 crore for OET and Rs 500 crore for OCT, structured through compulsory convertible preference shares offered at par. These investments are strategically aimed at bolstering the operational and business needs of both firms.

Operational Focus of OET and OCT

OET is engaged in the manufacturing and provision of electric vehicles, alongside services throughout the EV value chain. In contrast, OCT is dedicated to the production, processing, assembly, repair, and distribution of batteries and cells.

Financial Performance Highlights

According to the filing, OET generated a turnover of Rs 4,717.48 crore in FY25, a decrease from Rs 5,149.02 crore in FY24. Meanwhile, OCT experienced a significant increase in turnover, rising to Rs 73 crore in FY25 from just Rs 3.97 crore in the previous fiscal year.

Market Position and Sales Recovery

This development emerges as Ola Electric intensifies its focus on electric vehicle and cell manufacturing amidst escalating competition within the electric two-wheeler sector. After several months of diminishing sales, Ola Electric rebounded in March, with sales more than doubling and maintaining this positive trend in April, securing an 8.18% market share.

Revenue and Losses Overview

While the company has yet to report its Q4 FY26 results, it noted a significant 55% drop in revenue to Rs 470 crore in Q3 FY26. Additionally, through various cost management strategies, the company has been able to slightly reduce its losses.