Ola Electric Warns of Data Errors as SEBI Sales Disclosure Case Remains Pending

Ola Electric has linked regulatory scrutiny over its February 2025 sales disclosure to a longstanding risk warning that its internally tracked operating metrics may contain errors, according to the electric two-wheeler maker's latest Letter of Offer.

The company said some metrics, including sales volumes, order fulfilment and after-sales service volumes, are generated through internal systems and are not independently verified by third parties.

Ola said its systems may undercount or overcount performance or contain technical or algorithmic errors, in which case "the data we report may not be accurate".

However, the filing provides further details of regulatory scrutiny that followed Ola's February 28, 2025 announcement that it had sold more than 25,000 electric scooters during the month.

The National Stock Exchange sought information from Ola in March 2025 over the difference between the company's disclosure and vehicle registrations reflected on the government's VAHAN portal.

Ola told the exchange that the 25,000-unit figure represented order bookings and not sales recorded by the company. It said revenue was recognised in accordance with its revenue-recognition policy.

The Securities and Exchange Board of India subsequently sought information on differences between sales and delivery numbers, customer advances, VAHAN registrations and Ola's internal records, as well as the delivery and cancellation status of orders.

Ola said it provided SEBI with reconciliations of sales and registration data and details of its revenue-recognition, month-end estimation and order-cancellation practices.

The scrutiny later widened. Ola Electric and its Chairman and Managing Director Bhavish Aggarwal received a SEBI show-cause notice dated April 10, relating to disclosures on sales, store and service-centre expansion, and the regulatory approval and delivery timelines of its Roadster motorcycles, the Letter of Offer showed.

The regulator has alleged that Ola's February 2025 sales announcement was misleading because the figure represented confirmed orders rather than completed sales involving registration and delivery, according to the company filing.

SEBI has also questioned Ola's December 2024 disclosures on the expansion of its sales and service network and disclosures relating to Roadster and Roadster X approvals and deliveries.

The allegations have not been established. Ola and Aggarwal filed a settlement application with SEBI on June 8. The application remained pending as of the date of the Letter of Offer.

The company said it believes its reported operational metrics are accurate, but warned that actual or perceived discrepancies could lead to regulatory scrutiny, reputational damage and adverse publicity.

It also said inaccuracies in operational metrics could affect its understanding of its business and its long-term strategy, and could have an adverse impact on its business, reputation, financial condition and results of operations.

The disclosure comes as Ola Electric has lost ground in India's fast-growing electric two-wheeler market. The company registered 164,294 electric two-wheelers in FY26, down 52% from a year earlier, with its market share falling to about 12% from around 30%, according to VAHAN data.

Its registrations declined further on a year-on-year basis during the first half of FY27, even as the broader electric two-wheeler market continued to expand.