Summary:
Japan’s SoftBank Group has pared its stake in Ola Electric Mobility Ltd to 15.68%, marking its first divestment since the company’s IPO in August 2024. The sale comes amid improving sectoral sentiment, supported by China’s move to lift restrictions on critical EV supply chain materials, even as Ola Electric continues to face near-term demand pressures.
SoftBank Reduces Holding
SoftBank, through its investment arm SVF II Ostrich (DE) LLC, sold 94.9 million shares (2.15% stake) in Ola Electric between July 15 and September 2, 2025 via multiple transactions.
- Previous stake: 17.83%
- Post-sale stake: 15.68%
- Shares sold: 94.9 million
- Sale price: Not disclosed
Despite the reduction, SoftBank remains Ola Electric’s second-largest shareholder, behind founder and chairman Bhavish Aggarwal, who held a 30.02% stake as of June 2025.
First Stake Sale Since IPO
According to Trendlyne data, this marks SoftBank’s first divestment in Ola Electric since the EV maker’s public listing in August 2024. The exit comes at a time when global sentiment around electric mobility has been buoyed by supply chain easing.
Sectoral Boost: China’s Policy Shift
The stock also received a positive tailwind from China lifting export restrictions on rare earth magnets — key components for EV motors and semiconductors. The move is expected to ease raw material shortages for Indian EV manufacturers, including Ola Electric, and support the industry’s growth outlook.
Ola Electric’s Financial Performance
For Q1 FY26, Ola Electric reported:
- Net loss: ₹428 crore, narrower than ₹870 crore in Q4 FY25
- Revenue: ₹828 crore, down 49.6% YoY from ₹1,644 crore
- Reason: Demand softness weighing on sales
While losses narrowed, the steep revenue decline highlights the near-term challenges in demand, even as the company continues to scale its operations in the competitive EV two-wheeler space.
Outlook
SoftBank’s partial exit signals portfolio rebalancing rather than a full retreat, given its continued significant holding. With sector tailwinds such as easing supply chains and growing EV adoption, Ola Electric remains a key player to watch in India’s transition to electric mobility.
Disclaimer:
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