New Delhi: Ola Electric Technologies Pvt. Ltd, the operating arm of listed Ola Electric Mobility, responsible for almost all its revenue, has seen payment delays to MSME suppliers increase over the past two years, with a growing set of vendors having to wait more than the statutory 45-day period for payment of their dues.
Regulatory filings reviewed by Mint show overdue MSME dues (beyond 45 days) rose sharply: from 4.6% of ₹238 crore in outstanding dues during the listing period (April–September 2024) to 80% of ₹102 crore in October 2025–March 2026.
Even as the company's overall payments and outstanding dues to MSMEs declined as its production volume fell between 2024 and 2026, a growing set of vendors waited longer for their dues, with overdue amounts for more than 45 days rising from about ₹11 crore in April to September 2024 to over ₹81 crore in October to March 2026.
Delays in payments cause reputational damage and threaten litigation, as seen in cases where delays have now led to insolvency petitions in the National Company Law Tribunal by Sterling Gtake E-Mobility, Anevolve Mando eMobility, and Seoyon E-Hwa Summit Mobility Krishnagiri, dragging Ola Electric's shares down more than 5% last week.
Companies are only required to make disclosures to the Ministry of Corporate Affairs (MCA) if there are any pending dues to MSMEs for more than 45 days. Ola Electric’s Bengaluru-based peer Ather Energy made its last MSME filing for the April to September 2025 period, in which its outstanding dues for more than 45 days were ₹16 lakh, which represented 0.3% of its total outstanding dues. In the same period, Ola Electric’s dues pending for more than 45 days totalled around ₹96 crore, representing 61% of its total outstanding dues.
- Ola Electric's overdue MSME payments jumped to 80% from 4.6% since listing.
- Three suppliers filed NCLT insolvency petitions, dragging Ola Electric shares down 5%.
- Ola Electric's overdue dues are far higher than those of peer Ather Energy, at 0.3%.
- Only 43% of recent MSME payments were made within the 45-day limit.
- Ola Electric's sales and revenue fell sharply while losses widened, filings show.
Company points to warranty disputes
Mint could not independently ascertain the causes of the delays in payments to vendors since the company went public. In a filing with stock exchanges on 8 July, Ola Electric noted that the cases filed by Sterling and Anevolve began after the company had raised warranty and performance-related concerns regarding certain parts supplied by the two suppliers.
“The Company initiated arbitration proceedings against the said vendors and filed petitions under Section 9 of the Arbitration and Conciliation Act, 1996 before the Commercial Court, Bengaluru, seeking interim relief pending constitution of the arbitral tribunals,” it said in the filing.
“Subsequent to the initiation of the aforesaid arbitration proceedings, Anevolve Mando E-Mobility Pvt. Ltd and Sterling E-Mobility Solutions Pvt. Ltd filed petitions under Section 9 of the Insolvency and Bankruptcy Code, 2016,” the company said.
It has not yet addressed the case filed by Seoyon E-Hwa Summit. The supplier did not respond to Mint’s queries for details of the case, which was heard in NCLT’s Bengaluru branch on 10 July.
The timing of the payments the company made also changed during this period. Between April and September 2024, the company made ₹501 crore in total payments to MSMEs, of which 92% were paid within 45 days. In the period from October to March 2026, the company made total payments of ₹401 crore, of which only 54% were made within the 45-day period.
With outstanding dues of more than 45 days rising and a larger share of payments now being made after the 45-day period, the data suggest vendors have to wait longer for the company's dues.
Slower payments, more losses
“According to the MSME Act, the buyer is under a mandatory obligation to make payment to the supplier (MSME registered) within 45 days. If payment is not made within the prescribed time, then interest is to be paid on the amount due,” Gaurav Pingle, partner at Forefront Legal Consulting, a corporate law firm, said.
“Generally, companies prioritise such payment to avoid any litigation and cost,” he added.
The delay in payments to suppliers has coincided with service issues that have escalated over the last two years, resulting in the company more than halving its sales. From 329,237 sales in FY24 and 344,009 in FY25, its sales tumbled to under 200,000 in FY26.
Its revenue from operations fell from ₹5,010 crore in FY24 to ₹2,253 crore, with losses increasing from ₹1,584 crore to ₹1,833 crore.
“A delay in payments for many MSMEs creates a problem, as companies have to meet their own working capital requirements. The 45-day payment disclosure was made to protect MSMEs from delays. A high amount of pending payments after 45 days becomes worrying for suppliers," Vinod Kumar, president at India SME forum, said.
In June, Ola Electric raised ₹780 crore through a qualified institutional placement to shore up its cash.
"The matters referred to in your queries are currently sub judice before the appropriate courts, therefore, we will refrain from commenting on them. Ola Electric remains committed to complying with all its contractual and legal obligations towards its vendors," an Ola Electric spokesperson said.