Ola Electric shares rise 6% after clarification on sales data
Ola Electric stock gained 6% after the company denied reports of a drop in February 2025 sales.
The company clarified that the delay in vehicle registrations was due to ongoing vendor discussions.
Ola Electric assured investors that sales remain strong and backlog clearance is underway.
Ola Electric denies drop in sales
Ola Electric's share price jumped after the company denied claims of a significant drop in February 2025 sales. The company called these reports a "false narrative", explaining that the delay in vehicle registrations was temporary and was caused by discussions with vendors.
Current sales and backlog updates
In an exchange filing, Ola Electric provided the following updates:
Daily registrations have grown to over 50% of the company's average daily sales over the last three months.
40% of the backlog has already been cleared since February 2025.
The company expects the backlog to be fully resolved by the end of March 2025.
Regulatory scrutiny
Ola Electric's statement comes amid increased regulatory attention:
The Ministry of Heavy Industries and the Ministry of Road Transport and Highways have sought information (on March 11 and March 18, respectively).
Four states have also inquired about trade certificates for some of Ola's outlets.
Despite concerns about sales data discrepancies, Ola Electric has assured stakeholders that its sales performance remains strong. The company is actively addressing delays in registrations and expects to clear the backlog soon.