# Rs 57 crore provision reversal hits Ola Electric shares, brokerages wary 2026-08-15T23:12:00+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Ola Electric shares fell 5% intraday after its subsidiary Ola Cell Technologies reversed a Rs 57 crore penalty provision without ministry approval, inflating the company's reported loss reduction. Without the reversal, the quarterly loss would have been nearly Rs 393 crore, according to Business Today. Auditor B S R & Co. LLP issued a qualified opinion, saying it could not obtain sufficient audit evidence for the reversal. The provision was originally made for liquidated damages under a Ministry of Heavy Industries incentive scheme. The subsidiary sought an extension and waiver but had not received ministry approval as of June 30. Brokerages reacted sharply. Kotak retained its 'Sell' with a Rs 20 target, nearly half the current price of Rs 39.64, citing weak volumes and free cash flow outflows. Citi also kept a 'Sell' call at Rs 26, pointing to subdued sales, pressure on gross margins, and intensifying competition. Goldman Sachs, however, maintained a 'Neutral' rating and raised its target to Rs 40, though it noted a weak quarter with revenue down 45% year-on-year. Ola Electric has moved to a dealership-led sales model, but Citi said the benefits remain uncertain. Kotak warned that if volumes do not improve, the company may need to raise additional capital. ## Coverage - businesstoday.in This story was synthesised by AI from the source linked above. Tags: B S R & Co. LLP, Citi, Goldman Sachs, Kotak, Ministry of Heavy Industries, Ola Electric Canonical: https://indianopinion.org/rs-57-crore-provision-reversal-hits-ola-electric-shares-brokerages-wary/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/rs-57-crore-provision-reversal-hits-ola-electric-shares-brokerages-wary/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/