Big relief for Bhavish Aggarwal as Bombay High Court stays arrest warrant; Ola Electric shares rebound

Ola Electric share: Shares of Ola Electric Mobility Ltd rose around 5 per cent on Wednesday, February 18, after the company clarified that the Bombay High Court at Goa has stayed an arrest warrant issued against its chief executive officer Bhavish Aggarwal.

The stock climbed to Rs 29.35 apiece during the session. This ended a four-day losing streak. The rebound came a day after the stock hit its lifetime low of Rs 27.36.

However, the stock later saw profit booking. At the time of writing, Ola Electric shares were trading at Rs 28.09, up Rs 0.11 or 0.39 per cent.

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Company clarifies legal position

Ola Electric said the Bombay High Court at Goa has stayed the arrest warrant issued by the District Consumer Commission of South Goa against Bhavish Aggarwal.

The company said the High Court observed that the District Consumer Commission exceeded its jurisdiction under the Consumer Protection Act while issuing the warrant.

“The Company requests that due note be taken of the aforesaid factual legal position,” Ola Electric said in its clarification.

This clarification helped ease investor concerns. The stock had been under pressure due to uncertainty around the legal matter.

Consumer complaint triggered the warrant

The District Consumer Commission of South Goa had earlier issued a bailable warrant against Aggarwal. This happened after he allegedly failed to appear before the commission despite being served notice.

The case relates to a complaint filed by a customer regarding an Ola S1 Pro Second Gen electric scooter. The customer claimed the scooter continued to face issues even after repairs.

The complainant sought a refund of Rs 1.47 lakh. He also demanded compensation of Rs 50,000 for harassment and mental agony.

What this means for investors

The High Court’s stay order removes immediate legal risk for the company’s leadership. This has helped improve investor sentiment in the short term.

Ola Electric Q3 results highlights

Ola Electric said its consolidated net loss narrowed to Rs 487 crore in the December quarter (Q3FY26), compared with Rs 564 crore in the same period last year, according to a regulatory filing on Friday.

However, consolidated revenue from operations declined sharply by 55.02 per cent year-on-year to Rs 470 crore, down from Rs 1,045 crore in Q3FY25. The company delivered a total of 32,680 electric vehicles during the quarter ended 31 December 2025.

The sharp fall in revenue reflects slower electric vehicle adoption and lower volumes during the period.

Company calls quarter a ‘structural reset’

The Bengaluru-based company described the December quarter as a “structural reset”, as it realigned its retail network, cost structure and operating model to improve efficiency and build a more sustainable business.

The company said it focused on improving service quality, reducing costs, and strengthening its vertically integrated operating model.

“Q3 FY26 marks a structural reset for Ola Electric. We chose to fix the fundamentals by restoring service execution, resetting our cost structure, and deepening vertical integration,” a company spokesperson said.

The company added that these changes have resulted in a leaner operating model with lower breakeven levels and improved operational efficiency.

Margins improve despite weak revenue

Despite the sharp revenue decline, Ola Electric reported a record consolidated gross margin of 34.3 per cent in Q3FY26. This marks an increase of 15.7 percentage points compared with last year and a 3.4 percentage point rise sequentially.

The company attributed the margin improvement to better cost control, benefits from its Gen 3 platform, and structural advantages of its vertically integrated business model.