Two Suppliers Drag Ola Electric to NCLT Over ₹40 Crore Unpaid Dues
Sterling E-Mobility (₹29.8 cr) and Anevolve Mando (₹10.8 cr) filed insolvency petitions against Ola Electric, which is contesting. The move follows a bruising FY26: revenue down 50% to ₹2,253 crore, sales off 44% to 173,794 units, a net loss of ₹1,833 crore, and a slip to fifth in India's EV two-wheeler market.
The development
Two suppliers filed NCLT insolvency petitions against Ola Electric over ₹40 crore unpaid dues. Ola is contesting. The dispute follows a difficult FY26 with revenue down 50% and Ola slipping to fifth in India's EV two-wheeler market.
The numbers
- ₹40 crore total dues
- ₹29.8 crore to Sterling
- ₹10.8 crore to Anevolve
- FY26 revenue ₹2,253 crore (-50%)
- sales 173,794 units (-44%)
- net loss ₹1,833 crore
- 5th position EV two-wheeler market
- ₹281 crore office lease
Why it matters to operators and investors
The dual insolvency petitions and steep FY26 decline flag distressed dynamics—monitor for potential asset sales, distressed financing, or consolidation opportunities while contested litigation clouds valuation.
What to watch next
- NCLT admission vs dismissal of the two petitions
- New supplier or lender claims / trade credit tightening
- Q1/Q2 FY26 monthly registration volumes (VAHAN data)
- Cash balance and burn rate in next quarterly disclosure
- Market-share trend below No.5 or recovery
- Credit rating action or auditor going-concern commentary
- Ola files objection at NCLT arguing pre-existing dispute to block admission
- Quiet out-of-court settlement talks with both suppliers
- Management issues investor reassurance on liquidity and order book
- Cost restructuring: headcount, service network, and inventory reduction
- Explore fundraise or promoter support to shore up working capital
The counter-case
NCLT insolvency petitions from two suppliers over just ₹40 crore signal a working-capital crisis far larger than the headline number—suppliers rarely resort to insolvency proceedings unless normal collection channels have already failed. This is a symptom of a company hemorrhaging cash: revenue halved, a ₹1,833 crore net loss, unit sales down 44%, and a fall from market leader to fifth place. The supplier revolt risks a cascade—other vendors may tighten terms, demand upfront payment, or file their own petitions, choking the supply chain that keeps production running. Losing scale in a capital-intensive EV business while contesting litigation and burning cash is a downward spiral that's hard to reverse.