Ola Electric clarifies on reports of suppliers moving NCLT over dues; shares slip

Ola Electric Mobility Ltd on Wednesday issued a clarification in response to a news report claiming that two suppliers had moved the National Company Law Tribunal (NCLT) over unpaid dues. According to the report, two suppliers of Ola Electric Technologies Pvt Ltd, the operating arm of Ola Electric, have sought insolvency proceedings against the company over pending payments.

In a filing with the stock exchanges, the pure-play electric vehicle (EV) maker said, "The Company had raised warranty and performance-related concerns regarding certain parts supplied by Anevolve Mando E-Mobility Pvt Ltd and Sterling E-Mobility Solutions Pvt Ltd, which remained unresolved. Accordingly, the Company initiated arbitration proceedings against the said vendors and filed petitions under Section 9 of the Arbitration and Conciliation Act, 1996 before the Commercial Court, Bengaluru, seeking interim relief pending constitution of the arbitral tribunals."

The company further stated, "Subsequent to the initiation of the aforesaid arbitration proceedings, Anevolve Mando E-Mobility Pvt Ltd and Sterling E-Mobility Solutions Pvt Ltd filed petitions under Section 9 of the Insolvency and Bankruptcy Code, 2016 in relation to the same underlying transactions."

Ola Electric also said, "The Company is of the view that the disputes raised by the aforesaid vendors are subject to genuine pre-existing disputes, which are pending adjudication through arbitration. Accordingly, the Company is contesting the aforesaid petitions and taking all appropriate legal steps in accordance with applicable law."

Following the clarification, Ola Electric shares were last trading 0.80 per cent lower at Rs 42.06. The stock remains under the long-term Additional Surveillance Measure (ASM) framework on both BSE and NSE. Exchanges place stocks under the ASM framework to alert investors about heightened price volatility and encourage caution while trading.

Recently, the pure-play electric vehicle (EV) maker said its VAHAN registrations for the June quarter of FY27 nearly doubled on a quarter-on-quarter (QoQ) basis.

"Ola Electric today announced that it registered 43,719 vehicles in Q1 FY27, nearly doubling from 22,252 vehicles in Q4 FY26, according to VAHAN data. The quarter concluded with 16,144 registrations in June 2026, reflecting sustained business momentum and the company's strongest monthly performance in recent quarters," the company said in a BSE filing.

Separately, last month, Ola Electric informed exchanges that its subsidiary had received Bureau of Indian Standards (BIS) certification for its indigenously developed LFP 46100 cylindrical cell, marking a milestone in its battery manufacturing ambitions.

Commenting on the stock, Ravi Singh, Chief Research Officer at Master Capital Services, said, "Ola Electric remains aggressive in expansion and battery manufacturing plans, but the company is still facing concerns around service quality, execution and profitability."

He added, "Investors should closely monitor sales figures, margin improvement, and progress in expanding its product portfolio. Long-term prospects remain linked to India's growing EV adoption, but sustained earnings growth and operational performance will be crucial for the stock to maintain its recovery."

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said the stock's elevated volatility makes it suitable only for investors with a high-risk appetite.

From a short-term perspective, Virat Jagad, Senior Technical Research Analyst at Bonanza, said, "A fresh entry is suggested only above Rs 49 level to confirm a breakout. For existing positions, keep a stop loss placed at Rs 39.50."