Ola Electric Under SEBI Investigation for Alleged Insider Trading
Ola Electric, a prominent player in India’s electric vehicle (EV) market, is reportedly under investigation by the Securities and Exchange Board of India (SEBI) for alleged insider trading activities. The probe focuses on suspicious trading patterns in the company’s unlisted shares preceding significant internal developments.
Company’s Response to Allegations
In response to these allegations, Ola Electric clarified through a stock exchange filing that the trades in question were routine transactions involving shares acquired via the exercise of Employee Stock Ownership Plans (ESOPs), not through open market purchases. The company emphasized that these transactions were standard and did not constitute insider trading.
Previous Regulatory Scrutiny
This investigation follows a prior warning from SEBI in January 2025, when the regulator flagged Ola Electric for breaching disclosure norms. The company had announced a major retail expansion on social media before informing the stock exchanges, leading SEBI to caution against selective disclosure and remind the startup to adhere strictly to disclosure regulations under the SEBI (LODR) rules.
Discrepancies in Sales Figures
In February 2025, a discrepancy emerged between Ola Electric’s reported sales figures of 25,000 vehicles and the approximately 8,600 vehicle registrations recorded on the government’s VAHAN portal. Ola Electric attributed this gap to ongoing negotiations with its vehicle registration vendors, which temporarily affected registration numbers. The company stated that the actual units sold may be higher than the registered figures for that month.
Market Performance and Financials
In April 2025, Ola Electric secured the second position in the electric two-wheeler segment, with TVS Motor emerging as the market leader. TVS sold 19,736 units, a 154% year-over-year increase, capturing a 22% market share. In comparison, Ola Electric sold 19,709 units, a 42% decline from the previous year, holding a 21% market share.
Financially, Ola Electric’s share price declined to Rs 48.53, bringing its estimated market capitalization down to Rs 21,405 crore (approximately $2.5 billion). In Q3 FY25 (ended December 2024), the company reported a 19.4% year-on-year drop in operating revenue, falling to Rs 1,045 crore from Rs 1,296 crore in the same quarter the previous year. Simultaneously, its net loss widened significantly—up 50% year-on-year—to Rs 564 crore.
Cost-Cutting Measures and Workforce Reduction
In response to financial challenges, Ola Electric initiated a cost-cutting program in November 2024, resulting in monthly savings of approximately 900 million rupees ($10.3 million). The company restructured its sales and service networks, reduced operational costs, and lowered inventory levels. Despite these efforts, the company faced a quarterly loss of 5.64 billion rupees in October-December. To further streamline operations, Ola Electric laid off over 1,000 employees and contract workers across various departments, including procurement, fulfillment, customer relations, and charging infrastructure.
Competitive Landscape
The electric two-wheeler market in India is becoming increasingly competitive. Traditional players like TVS Motor and Bajaj Auto have made significant strides, with TVS achieving its best-ever April sales and leading the market for the first time. Bajaj Auto’s performance was bolstered by strong sales of its Chetak e-scooter, which topped e-scooter sales in Q4 FY25.
Looking Ahead
Ola Electric aims to achieve EBITDA breakeven in its automotive segment by Q1 FY26, with the full financial impact of recent cost-cutting measures expected to be realized from April 2025. The company has also expanded its product portfolio, introducing the Roadster X series, starting at ₹74,999, with the top model featuring a 501 km range. These innovations are part of Ola Electric’s strategy to reinforce its position in India’s evolving EV market.
As the investigation unfolds, stakeholders will closely monitor how Ola Electric navigates these challenges and adapts to the dynamic EV landscape.
