Ola Electric gains 5% after Bombay HC stays arrest warrant against CEO

Shares of Ola Electric Mobility Ltd. rose nearly 5 per cent on Wednesday after the Bombay High Court at Goa stayed an arrest warrant issued against the company's chief executive officer (CEO).

 

The electric vehicle (EV) maker's stock rose as much as 4.9 per cent during the day to ₹29.35 per share, the biggest intraday gain since February 3 this year. Ola Electric stock pared gains to trade 3 per cent higher at ₹28.8 apiece, compared to a 0.07 per cent advance in Nifty 50 as of 9:41 AM. 

 

Shares of the company snapped a four-day losing streak and currently trade at 2.8 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 20 per cent this year, compared to a 1.5 per cent decline in the benchmark Nifty 50. Ola Electric has a total market capitalisation of ₹12,800.23 crore.  READ STOCK MARKET UPDATES TODAY LIVE

 

Ola Electric stays arrest warrant against CEO

Ola Electric said the Bombay High Court at Goa has stayed the warrant issued by the District Consumer Commission, South Goa. The court also observed that the commission had exceeded its jurisdiction under the Consumer Protection Act while issuing the warrant. The company said the order clarifies the legal position and requested that due note be taken of the development.

 

More detailes regaring the order or the complaint were not issued in the statement. However, media reports indicated that the South Goa District Consumer Disputes Redressal Commission has issued a bailable arrest warrant against Bhavish Aggarwal. 

 

Reports said that the complaint was filed by Pritesh Chandrakant Ghadi of Chicalim, Mormugao, who purchased an Ola S1 Pro 2nd Generation scooter for Rs 1,47,499 in August 2023. He alleged that the scooter's whereabouts remain unknown after it was given to service for touchscreen malfunctions and Bluetooth connectivity problems.   ALSO READ | NDL Ventures hits 20% upper circuit as CCI clears Hinduja Leyland merger

Ola Electric Q3 analysis

The EV maker reported a consolidated net loss of ₹487 crore in Q3, down from ₹564 crore in the same quarter last year. Its revenue from operations dropped 55 per cent year-on-year (Y-o-Y) to ₹470 crore, from ₹1,045 crore in Q3FY25. Sequentially, revenue fell around 32 per cent from ₹690 crore in Q2FY26.

 

The decline was due to the steep drop in the company's scooter sales to 32,680 units in Q3FY26 from 84,029 units during the same period last year. The company, however, said that it consolidated gross margin improved to 34.3 per cent, up 15.7 percentage points Y-o-Y. 

Technical outlook

Technically, the stock is trading below its key 50-, 100-, and 200-day EMAs on both daily and weekly charts, reinforcing the negative bias and lack of trend strength, Hitesh Tailor, Technical Research Analyst at Choice Broking, said. Although the RSI stands at 27.57, indicating oversold conditions, and a mild bullish divergence is visible on the daily chart, there is still no concrete price confirmation of reversal, he said.

  For any meaningful upside, a shift in trend structure supported by strong volumes and positive fundamental triggers would be essential, Tailor said. "Until then, traders are advised to remain cautious and avoid fresh long positions unless a clear technical and fundamental confirmation emerges."