By BullScreen Editorial Team 
Shares of Ola Electric Mobility Limited fell nearly 5 percent on Monday, trading at Rs. 23.5 with a market capitalization of Rs. 10,365 crore. The decline comes as the company announced a strategic reallocation of funds raised through its IPO, redirecting a portion of research and development (R&D) budgets toward debt repayment.
In a stock exchange filing, Ola disclosed that Rs. 575 crore from the Rs. 1,505 crore originally earmarked for R&D will now be used for financial stability and select growth initiatives. Of this, Rs. 475 crore will go toward repaying borrowings, while Rs. 100 crore is intended for organic growth. The board approved the proposal on 18th March, pending shareholder consent.
The move comes amid rising pressure on the electric vehicle (EV) manufacturer, which has seen declining sales, a high cash burn, and stock depreciation of nearly 70 percent since its August 2024 debut at Rs. 76 per share. Upcoming debt obligations, including Rs. 526 crore due in FY26 and Rs. 610 crore in FY27, have heightened the need for financial prudence.
Ola Electric, which develops EVs, battery packs, motors, and vehicle frames through in-house R&D and vertical integration, recently reported revenue of Rs. 470 crore for the quarter—a sequential decline of 32 percent and a year-on-year fall of 55 percent. Net losses stood at Rs. 487 crore, up 16 percent sequentially but down 14 percent from the previous year.
The company’s focus on debt reduction follows promoter Bhavish Aggarwal’s partial stake sale in December 2025, which helped repay a Rs. 260 crore promoter-level loan. Analysts say reallocating R&D funds to strengthen the balance sheet could help Ola navigate its near-term financial pressures, though it may slow innovation and product development.
Ola Electric’s strategy underscores the broader challenges in India’s EV sector, where market share gains and profitability remain difficult amid rising costs and competitive pressures.