News · Mobility & Logistics

Ola Electric flags second suspected employee fraud

By Startup Enthusiast · 9 September 2026

What they do

Ola Electric makes electric scooters, motorcycles, three-wheelers and home energy products

Auditors flagged a second suspected employee fraud at its subsidiary, with over ₹1 crore involved

The company's revenue halved to ₹2,253 crore in FY26 as deliveries fell to 1.74 lakh units

Auditors flagged a second suspected employee fraud at Ola Electric Technologies, a wholly owned subsidiary of Ola Electric.
Two suspected frauds were reported to the central government via e-form ADT-4 filings dated 9 Jul 2025 and 4 Jun 2026.
The amount involved in the suspected frauds exceeds ₹1 crore; it is unclear if this is per offence or combined.
The annual report did not disclose the employees involved, the nature of the suspected frauds, or the precise amount.
Statutory auditors issued a qualified opinion on the group's internal financial controls due to a material weakness in physical verification of finished goods and raw materials at the OET plant and stores.
As of 31 Mar 2026, the group had ₹251 crore worth of raw materials and finished goods covered by the audit matter.
Inventory worth ₹153 crore was not physically verified during FY26 or subsequently up to the consolidated financial statements date.
The company attributed the FY26 observation to a temporary disruption in inventory processes during a redesign of network operations in Q4 FY26.

This is the second consecutive year auditors flagged inventory verification weaknesses; in FY25, ₹362 crore worth of electric two-wheelers and spare parts were not physically verified.
Ola Electric's revenue from operations halved to ₹2,253 crore in FY26 from ₹4,514 crore in FY25.
Deliveries fell to 1.74 lakh units in FY26 from 3.59 lakh units in FY25.
Employee turnover among permanent workers surged to 105% in FY26 from 29% in FY25.
The company cut over 1,000 jobs in March 2025 and announced a restructuring in January 2026 expected to impact around 5% of the workforce.

Ola Electric manufactures electric scooters (S1 Pro Sport, S1 Pro+, S1 X+, S1 Z, S1 Air, S1 X, S1 3rd Gen), electric motorcycles (Roadster X, Roadster X+, Roadster, Roadster Pro), and electric three-wheelers (Shakti, Shakti Rack, Mahashakti).
It also sells home energy products (Ola Shakti 4.6 kWh, 9.2 kWh) and a MPPT solar charge controller.
The company has 590 service centres and aims to make 1 lakh third-party mechanics EV-ready.
It offers AI-powered proactive maintenance alerts and remote diagnostics.
Ola Electric provides an EMI calculator with tenure up to 60 months, lowest interest rate 6.99%, downpayment starting at ₹0, and zero processing fee.
In August 2026, it launched the S1Z, its first escooter range powered by Bharat Cell LFP technology.
The company largely completed installation for its 6 GWh cell manufacturing platform.

Ola Electric is targeting more than 500 dealerships over the next few quarters, shifting from company-owned outlets to a dealer-partner model.
The company's board approved a fundraise of up to ₹1,500 crore, subject to shareholder and regulatory approvals.
It raised ₹780.2 crore through a QIP (qualified institutional placement) in June 2026.