Market Performance
Ola Electric's share price increased by 6%, following the company's response to concerns regarding a reported decline in February 2025 sales. The stock opened at ₹51.78 per share on the BSE, reaching an intraday high of ₹55.35 and a low of ₹51.35.
Clarification on Sales Data
The company denied claims of a significant sales decline, attributing the temporary delay in vehicle registrations to ongoing discussions with vendors. Ola Electric stated that its overall sales performance remains strong and that backlog issues are being addressed promptly.
In an exchange filing, the company reported:
- Daily registrations exceed 50% of the average daily sales recorded over the past three months.
- 40% of the backlog from February has already been cleared.
- Full backlog resolution is expected by the end of March 2025.
Regulatory Inquiries
Ola Electric confirmed receiving inquiries from multiple regulatory bodies:
- Ministry of Heavy Industries (March 11, 2025)
- Ministry of Road Transport and Highways (March 18, 2025)
- Four state governments regarding trade certificates for specific outlets.
The inquiries relate to discrepancies between vehicle registrations on the VAHAN portal and sales figures reported in the company's regulatory filing on February 28, 2025. Ola Electric assured that it is actively addressing these concerns.
Operational Adjustments
The company explained that recent operational changes contributed to the confusion, particularly after terminating contracts with two national vendors responsible for managing registrations. Ola Electric emphasized that this move aimed to streamline operations and improve profitability.
Conclusion
Ola Electric reassured investors that its sales momentum remains strong and is working to resolve regulatory concerns. The company focuses on efficient backlog clearance and operational transparency, reinforcing its commitment to customer service and compliance with industry regulations.
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