Ola Electric Shares Fall 4.5% on Promoter Stake Sale, Investor Sentiment Hit

Ola Electric share price fall 4.5%, touching a day’s low of Rs 31.42 on NSE after it plunged amid promoter stake sale and weak financials. Bhavish Aggarwal sold shares to clear loans, triggering investor concerns. Recent Q2 FY26 results show a revenue drop but a narrowing.

Promoter Stake Sale

Ola Electric's shares tumbled 12.77% in the past five days, hitting near-record lows around Rs 31.42 on the NSE as of December 18, 2025. Founder Bhavish Aggarwal sold 2.62 crore equity shares worth Rs 92 crore through a bulk deal on December 16 at Rs 34.99 per share, representing a 0.6% stake. This one-time monetization fully repaid a Rs 260 crore promoter-level loan, releasing all pledged shares equivalent to 3.93% of equity and eliminating pledge overhangs.

The company stresses no dilution in promoter control or long-term conviction, with the promoter group retaining approximately 34% holding, among the highest for new-age listed firms. Aggarwal's move underscores commitment to zero-pledge operations, reducing volatility risks from forced sales during market stress. On December 17, 2025, Bhavish Aggarwal sold 4.19 crore shares at a share price of Rs 33.96 as per NSE data.

Q2FY26 Financial Performance

Ola Electric reported consolidated revenue of Rs 690 crore for Q2FY26, down 43% year-on-year from Rs 1,214 crore and sequentially from Rs 828 crore in Q1FY26. Net loss narrowed to Rs 418 crore, a 15.6% improvement from Rs 495 crore in Q2FY25 and better than Rs 428 crore in Q1FY26. Operating EBITDA loss halved to Rs 137 crore from Rs 279 crore a year ago, driven by cost controls.

The auto segment achieved profitability with 30.7% gross margins and Rs 15 crore positive cash flow from operations, excluding one-time inventory buildup. The revenue decline stems from strategic volume moderation, which favours margins over aggressive sales amid market share erosion. Employee costs dropped to Rs 55 crore from Rs 89 crore sequentially, aiding efficiency.

Management Guidance

Ola Electric targets up to one lakh vehicle deliveries in H2FY26, prioritizing margin expansion and cash discipline over prior volume guidance. Commercial battery cell revenue starts in Q4 FY26 from its Gigafactory, initially at 2.5 GWh capacity scaling to 5.9 GWh by March 2026. The firm focuses on profitability trajectory, vertical integration, and innovations like the 4680 Bharat Cell battery and Ola Roadster motorcycle.

Leadership highlighted sustainable growth in India's EV market despite competition. Recent HyperService expansion boosts after-sales access. These steps signal resilience amid headwinds like falling sales and macroeconomic pressures.