Moody’s downgrades Ola’s parent ANI Technologies to ‘Caa1’, outlook negative amid liquidity strain

Moody’s Ratings has downgraded ANI Technologies Pvt Ltd, the parent company of ride-hailing platform Ola, from ‘B3’ to ‘Caa1’, with the outlook revised to negative. The downgrade reflects weakening financial performance, deteriorating liquidity, and an elevated risk of breaching loan covenants.

According to Moody’s, the company’s operating cash flow has declined while refinancing risks have risen amid slower revenue growth and continuing losses. The agency also downgraded the rating on the guaranteed senior secured term loan borrowed by Ola Netherlands B.V. to Caa1 from B3. The loan, guaranteed by Ola, is due in December 2026.

Also Read: Ola Electric Q2 Results: Loss narrows to Rs 418 crore, Auto EBITDA turns positive

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Cash burn and covenant pressure

The report noted that higher-than-expected cash burn over the six months ending September 30, 2025, eroded Ola’s cash reserves from about $90 million in March 2025. The decline has significantly limited the company’s headroom under its term-loan covenant.

“A covenant breach constitutes an event of default and accelerates repayment of Ola’s $65 million loan due December 2026. Ola must maintain cash equal to 40 per cent of the outstanding loan — at least $26 million — to comply with the covenant,” Moody’s said.

The agency expects intense competition in India’s ride-hailing market to continue straining profitability, leading to sustained cash burn over the next 12 months. Given the weak liquidity position, Ola will need to depend on external funding sources to refinance its upcoming loan obligations.

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Funding plans and Ola Electric’s performance

Moody’s also highlighted that Ola is exploring strategic options such as a potential initial public offering (IPO) and the sale of its 3.64 per cent stake in Ola Electric Mobility Ltd, estimated to be worth around $90 million. However, it cautioned that these plans carry significant execution and market risks.

Meanwhile, Bhavish Aggarwal-led Ola Electric Mobility Ltd reported a consolidated net loss of Rs 418 crore for the July–September quarter (Q2 FY26), with revenue from operations plunging 43 per cent year-on-year to Rs 690 crore, down from Rs 1,214 crore in the same period last year.