Summary:
Ola Electric’s payments to Krutrim SI Designs rose to ₹54 crore in FY26, with ₹46 crore paid in advance, taking total payments to ₹100 crore. The transactions have drawn investor attention to AI infrastructure, related-party dealings, governance and financial management.
The payments by Ola Electric Mobility to Krutrim SI Designs – an artificial intelligence company owned by its chairman Bhavish Aggarwal – nearly quadrupled in FY26, jump to ₹100 Crore, according to the company’s annual related party disclosure.
The payments to Krutrim, a cloud infrastructure provider, rose to ₹54 crore for services availed, up from ₹26 crore a year ago. Moreover, the company had paid ₹46 crore as advance for services that had been ordered but not invoiced as of March 31, 2026.
The company had cut down expenses by almost half in FY26 to ₹3,245 crore as it worked towards cost-cutting measures.
Reason for Ola’s Increased Payments to Krutrim
Ola Electric stated that the increased payments were because the company had migrated its cloud and AI infrastructure to Krutrim. As a result, the company made zero payments to other cloud infrastructure providers.
“The payments have been made in consideration of services contracted for and ordered by the company. As of March 31, 2026 some invoices were pending which resulted in the company making advance payments. Payments to Krutrim have been made in accordance with the company’s corporate governance practices and applicable laws,” the company said in a disclosure.
While Krutrim develops AI infrastructure and related technologies, Ola Electric has been developing tech capabilities relating to electric vehicles, software platforms and connected devices.
Focus on Related-Party Transactions
The increased payments have triggered concerns over related-party transactions as Krutrim is linked to Ola Electric’s promoter. Apart from the overlapping directorates, investors have questioned the value for money in case of such related-party transactions.
“Transactions involving entities controlled by the company’s directors need to be scrutinized for governance and transparency. Such disclosures help shareholders understand the commercial rationale behind related-party transactions,” said analysts.
The related-party transactions in themselves are not wrong, as Ola Electric claims that the payments to Krutrim were routine commercial transactions that were undertaken in accordance with applicable laws.
Focus on Stock Price – Why It Dropped?
The disclosure did not have a direct impact on the company’s operations, rather it drew attention to Ola Electric’s corporate governance and financial management practices. Investors usually keep a tab on related-party transactions as it provides them with an insight into the company’s decision-making processes. It also helps them understand the transactions that may not be fully reflected in the company’s financial statements.
At the same time, the company’s financials are under scanner too. While Ola Electric is reportedly facing financial challenges, including liquidity crisis, its trade payables decreased to ₹5 crore as of March 31, 2026 from ₹26 crore a year ago, suggesting that Ola Electric has been meeting its obligations to the vendors. However, these claims cannot be independently verified as of now.
Ola Electric currently finds itself at the crossroads as it faces scrutiny from investors and shareholders in regards to its financial practices and related-party transactions. At the same time, the company has to deal with its own financial challenges, including the filing of insolvency petitions by two of its vendors over dues of over ₹40 crore.
What To Look For Next?
The focus will be on how much value Krutrim’s AI infrastructure brings on the table for Ola Electric and how the investment in the promoter’s company helps the Ola Electric in its operations. As the company pushes for its electric vehicle ecosystem, the investments in technology, including Krutrim’s AI infrastructure, would play a key role in its long-term sustainability. As such, the related-party transactions between Ola Electric and Krutrim, along with the impact of these transactions, will be of keen interest to investors.
