Ola Electric is in focus amid plans to cut physical stores

Shares of Ola Electric are expected to take center stage during Monday’s trading session as the company plans to further reduce its physical store network to around 550 outlets by March end. The move comes amid a significant decline in market share and increasing operational challenges, said an Economic Times report.The planned downsizing marks a deeper cut for the Bengaluru-based electric vehicle (EV) maker, just a year after it announced an ambitious expansion of its retail footprint to 4,000 stores across India.

Also read: Ola Electric to reduce its store network to 550

In its latest quarterly update, Ola Electric revealed that it has already reduced its store count to 700 outlets as part of a ‘structural reset’. The third financial year 26 marks a structural reset for Ola Electric. As EV penetration growth has slowed and our services need to be strengthened, we have chosen to bring our retail footprint, cost structure and business model to a sustainable, stable situation by capturing the fundamentals and not optimizing for short-term volumes,” the company stated in the shareholder letter.

Financially, the company reported a net loss of Rs 487 crore for the quarter ended December 31, 2025, a modest improvement from a loss of Rs 564 crore in the same period last year. Operating revenues fell sharply, declining 55% year-on-year to Rs 470 crore.

Ola Electric delivered 32,680 electric two-wheelers this quarter, a decline of 61% compared to the same period a year earlier. Meanwhile, data from Vahan’s website shows that the company’s market share in the electric two-wheeler segment fell to 6.3% in January from around 26% a year ago.

Shares of Ola Electric Mobility fell 3.49% to Rs 26.55 on the NSE on Friday. It is striking that the 14-day Relative Strength Index (RSI) of the stock is 23.8. Since an RSI below 30 is generally considered oversold, it indicates that the stock could see a potential recovery in the near term.
In the December 2025 quarter, foreign portfolio investors (FPIs) increased their holdings from 3.24% to 4.08%, while mutual funds marginally increased their holdings from 5.51% to 5.54%.

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