Overview
- The Bombay Stock Exchange asked Ola Electric to clarify media reports on a 'material weakness' in inventory controls, and the company replied that the matter had already been disclosed in its auditor’s report with no material impact from the article.
- Ola Electric said the lapse stemmed from a temporary network re-alignment in Q4 FY25 that prevented physical verification at its subsidiary, calling it an isolated case.
- The company asserted there was no misplacement of inventory or financial impact, citing ERP data, VIN traceability and Vahan registrations to validate stock.
- BSR & Co. LLP’s report cited control gaps and specific mismatches in figures reported to lenders, including Rs 367 crore vs Rs 341 crore for December 2024 and Rs 320 crore to Bank of Baroda vs Rs 361 crore to Yes Bank for September 2024.
- The stock has been volatile with roughly 50% gains over the past month and intraday declines this week, as a SoftBank entity disclosed selling about 94.94 million shares and recent results showed a Q1 FY26 net loss of Rs 428 crore with revenue down to Rs 828 crore amid regulatory scrutiny.