Ola Electric Cuts Store Network Sharply as Sales Slow and Strategy Shifts

The strategy of Ola Electric Mobility is to reduce its number of stores to approximately 550 stores by the end of March. This move follows just a year after the announcement by the brand of a radical expansion strategy that will see it reach approximately 4,000 stores countrywide.

The company already begun to do this reset. According to its recent quarterly report, Ola affirmed that it has narrowed down its network to approximately 700 outlets. The company says that this is a change of focus towards operations reinforcement as opposed to the fast development of sales. Besides, the brand also found that the growth of EV adoption has decelerated, and service quality must be improved.

Financial Performance Shows Pressure on Revenue and Deliveries

Recent financial numbers also highlight the challenges the company faces. For the quarter ending December 2025, Ola reported a net loss of Rs 487 crore. However, this figure still shows a slight improvement compared with the Rs 564 crore loss recorded a year earlier.

Revenue, on the other hand, dropped sharply. The company’s income from operations fell by 55% year-on-year to Rs 470 crore. Moreover, deliveries declined as well. Ola shipped 32,680 electric scooters during the quarter, which marks a steep fall of over 60 percent compared with the same period last year.

Market data suggests the brand’s position in the segment has weakened too. Government vehicle registration data indicates Ola’s market share in the electric two-wheeler segment slipped to about 6.3 percent in January, down from nearly 26 percent a year earlier. This decline perhaps explains why the company now wants to stabilise its business model before expanding again.

Stock Performance and Investor Sentiment

This uncertainty has also been indicated by the stock of the company. The shares of Ola Electric lost approximately 3.5 percent at the National Stock Exchange of India during the last trading session and ended close to Rs 26.5. Technical indicators have indicated that the Relative Strength Index of the stock is still in a range of less than 30, which is a common indicator of an oversold stock. Therefore, some analysts believe a short-term rebound could be possible.

Institutional investors have been cautious despite the challenges faced by the operations. The foreign portfolio investors marginally increased their holdings in the December quarter, but the mutual funds also increased their exposure as well. This is an indication that the long-term investors have not yet lost hope in the EV maker, despite the restructuring of its approach.

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