Ola Electric To Infuse ₹2,000 Cr In EV, Cell Manufacturing Units

Days ahead of its Q4 financial disclosures, EV major Ola Electric’s board has cleared a cumulative investment of ₹2,000 Cr in its cell manufacturing arm, Ola Cell Technologies Pvt Ltd (OCT), and vehicle manufacturing arm, Ola Electric Technologies Pvt Ltd (OET).

While OET is set for an infusion of ₹1,500 Cr, the company intends to invest the remainder ₹500 Cr in OCT. Ola Electric’s bread and butter vehicle manufacturing arm reported a 8% YoY decline in its turnover to ₹4,717.48 Cr in FY25. Meanwhile, OCT’s turnover surged multifold to ₹73 Cr in the fiscal year.

The transactions are expected to be completed by May 15, 2027. The fund infused by the company would be supporting the subsidiaries’ business requirements, Ola Electric said in a disclosure today. 

The fund infusion by the company comes weeks after Ola Electric was said to be looking to raise ₹2,000 Cr in external funding by selling a minority stake in its battery arm to sovereign wealth funds and global infrastructure investors. However, no such investment has materialised as yet. 

The internal investment adds on to a spree of rejigs that the company has been making in recent months amid mounting financial pressure. Earlier in March, the company approved reallocating ₹575 Cr from its research and product development budget to other objectives. While ₹100 Cr will go towards organic growth initiatives, ₹475 Cr is proposed to be reallocated to repay or prepay debt.

Ola Electric is set to announce its financial performance for the fourth quarter of FY26 (Q4 FY26) on Monday (May 18). 

In Q3 FY26, the company managed to trim its net loss by 14% YoY to ₹487 Cr from ₹564 Cr in the year-ago quarter. The decline in the loss came at the cost of its top line. The company’s operating revenue plunged 55% YoY and 32% QoQ to ₹470 Cr.

The company’s auditor had flagged a negative cash flow from operations of ₹866 Cr during the nine-months period ended December 31, 2025, primarily on account of continued operating losses and lower-than expected growth in sales volume. In its Q3 shareholder letter, the company said that it had ₹1,991 Cr cash at the end of December, ₹9 Cr less than the freshly proposed investment.

Credit rating agency ICRA had downgraded OET’s rating, citing underperformance in the sales volumes and market share coming under pressure. At the same time, ICRA reaffirmed its rating on OCT, emphasising the cell business’ strategic importance to the group while acknowledging execution and funding risks in the near to medium term. 

Shares of Ola Electric ended today’s trading session 0.84% lower at ₹35.7.

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