The filing details the regulatory scrutiny that followed Ola Electric's announcement on February 28, 2025, that it had sold more than 25,000 electric scooters during the month.
Ola Electric has cautioned that its internally tracked operational metrics may contain errors, as its latest Letter of Offer sheds further light on regulatory scrutiny over the company's February 2025 sales disclosure. The electric two-wheeler manufacturer said several operational metrics, including sales volumes, order fulfilment and after-sales service volumes, are generated through internal systems and are not independently verified by third parties, Money Control has reported.
These systems could undercount or overcount performance or contain technical or algorithmic errors, meaning "the data we report may not be accurate".
The filing also details the regulatory scrutiny that followed Ola Electric's announcement on February 28, 2025, that it had sold more than 25,000 electric scooters during the month.
The National Stock Exchange (NSE) sought information from Ola Electric in March 2025 after discrepancies emerged between the company's announcement and vehicle registration figures on the government's VAHAN portal.
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In response, Ola told the exchange that the figure of 25,000 units referred to order bookings rather than sales recorded by the company. It also said revenue had been recognised in line with its revenue-recognition policy.
The Securities and Exchange Board of India (SEBI) subsequently sought details of differences between sales and delivery figures, customer advances, VAHAN registrations and the company's internal records. The regulator also sought information on the delivery and cancellation status of orders.
Ola said it provided SEBI with reconciliations of sales and registration data, along with details of its revenue-recognition policy, month-end estimation practices and order-cancellation procedures.
The regulatory scrutiny subsequently widened. According to the Letter of Offer, Ola Electric and its Chairman and Managing Director, Bhavish Aggarwal, received a SEBI show-cause notice dated April 10 concerning disclosures on sales, the expansion of stores and service centres, and regulatory approval and delivery timelines for its Roadster motorcycles.
The regulator alleged that Ola's February 2025 sales announcement was misleading because the figure represented confirmed orders rather than completed sales involving vehicle registration and delivery, according to the company filing.
SEBI also questioned the company's December 2024 disclosures on the expansion of its sales and service network, as well as statements concerning approvals and deliveries of the Roadster and Roadster X motorcycles.
The allegations have not been established. Ola Electric and Aggarwal filed a settlement application with SEBI on June 8, which remained pending as of the date of the Letter of Offer.
Ola Electric said it believes its reported operational metrics are accurate. However, it warned that actual or perceived discrepancies could invite regulatory scrutiny, damage its reputation and attract adverse publicity.
The company also cautioned that inaccuracies in operational data could affect its assessment of the business and its long-term strategy. Such errors, it said, could adversely affect its business, reputation, financial condition and results of operations.
The disclosure comes as Ola Electric has lost ground in India's electric two-wheeler market. The company registered 164,294 electric two-wheelers in FY26, marking a 52% decline from the previous financial year. Its market share fell to around 12% from approximately 30%, according to VAHAN data.
Registrations declined further year on year during the first half of FY27, even as the wider electric two-wheeler market continued to expand.
