An arrest warrant issued towards Bhavish Aggarwal by a client courtroom in Goa, later stayed by the Bombay Excessive Courtroom, has added to the turbulence engulfing Ola Electrical Mobility Ltd. The episode is the newest in a collection of setbacks for founder Aggarwal, who’s battling service complaints, falling gross sales and a pointy reversal in investor sentiment.
Mint unpacks why the corporate continues to draw destructive consideration.
Why do service points proceed to persist for Ola Electrical?
The issue for Ola Electrical has been the excessive fee of breakdowns of its older automobiles. Since beginning deliveries in 2021, Ola has launched three generations of scooters. Firm information present considerably greater guarantee prices for Gen 1 and Gen 2 in contrast with Gen 3.
The corporate began promoting Gen 3 scooters solely in 2025, that means a overwhelming majority of the greater than one million scooters it has offered in the previous couple of years are earlier generations, for which excessive servicing points have been flagged. Gross sales of older fashions have been stopped solely in September.
Service complaints have surfaced repeatedly over the previous couple of years, together with public criticism from comic Kunal Kamra, however Aggarwal claimed that its scooters are top-of-the-line on provide. Nevertheless, in an earnings name on 13 February, Aggarwal accepted that service issues weighed on the model
Ola Electrical’s gross sales stood at almost 200,000 models in 2025, falling by greater than half in a 12 months. In the meantime, its share worth has dropped 50% within the final one 12 months, owing to investor concern.
What’s the battery edge it’s banking on?
Whereas the corporate is making an attempt to repair its service issues by way of same-day servicing and higher planning, a big a part of its greatest is determined by the scale-up of its lithium-ion battery enterprise. The corporate has constructed a gigafactory to supply lithium-ion cells, which go into EVs and battery storage techniques.
There are two-fold positive factors the corporate is chasing. One is the cost-benefit for its scooters, because it is not going to need to depend on imports. Lithium-ion batteries make up greater than one-third of a automobile’s worth. Second is its battery storage enterprise, which sells house inverters.
Aggarwal estimates a ₹1,000 crore income alternative for the house storage enterprise within the subsequent monetary 12 months, as Ola’s battery efficiency is predicted to outpace the business. By the top of March 2026, the corporate targets 6GWh of capability to make lithium-ion cells.
Why do Ola and Aggarwal matter?
With multiple million scooters operating on the street, the destiny of Ola Electrical issues for shoppers and buyers. The corporate was as soon as the most important electrical two-wheeler vendor, commanding over 50% market share earlier than the 2025 droop.
Aggarwal can also be the one startup founder who raised cash for 3 completely different ventures, Ola Cabs, Ola Electrical and Krutrim, all three attaining unicorn standing.
Is there hope for Ola’s turnaround?
It is determined by a number of elements, together with whether or not the brand new technology of automobiles will carry out higher in the long term. Furthermore, the corporate has not but supplied a commentary on how the reception of its new enterprise Ola Shakti has been and whether or not it has a ₹1,000 crore market within the brief time period.
If the battery enterprise scales up and the servicing of automobiles improves meaningfully, the corporate can anticipate some reduction within the home market.
However competitors has intensified. Rivals resembling TVS Motor Firm, Bajaj Auto, Hero MotoCorp and AtherEnergy have scaled up meaningfully over the previous couple of years as Ola stumbled.
With Aggarwal accepting that there was successful to the model picture owing to service points, the street to restoration appears troublesome.
How are analysts and buyers reacting?
The Ola Electrical inventory listed at round ₹76 per share in August 2024 and surged to ₹150 inside weeks. However since then, it has been falling. At present, it’s buying and selling round ₹27.60 per share on the NSE.
The firm’s income plunged 57% on-year to ₹504 crore within the December quarter amid dwindling gross sales, whereas its losses narrowed barely to ₹487 crore from ₹564 crore.
Two analysts had a ‘purchase’ name on the inventory when it listed in August 2024, towards no ‘promote’ suggestion, in accordance with Bloomberg information. By January 2025, the ratio had moved to 5 buys and two sells. Nevertheless, as of 17 February 2026, the stability reversed with six ‘promote’ rankings and one ‘purchase’.