ANI Technologies Faces Cash Crunch: S&P Downgrades OLA Cabs

ANI Technologies, operating OLA Cabs, has been downgraded by S&P Global Ratings to a vulnerable 'CCC' status with a negative outlook. The downgrade stems from depleted cash reserves and potential covenant breaches due to ongoing losses and shrinking market share. The company's liquidity challenges are exacerbated by intense competition in the ride-hailing sector.

ANI Technologies, the operator of OLA Cabs, has been downgraded to 'CCC' status with a negative outlook by S&P Global Ratings. The agency highlighted concerns over the company's dwindling cash reserves, increasing the risk of a covenant breach amid ongoing deficits.

S&P projects ANI's cash and equivalent reserves to drop below Rs 2 billion by Q4 of fiscal 2026. The company needs to maintain 40% of its remaining term loan balance in cash to meet covenant requirements, a feat achievable through Rs 2.4 billion on hand given Rs 6 billion in loans.

The competitive pressure from larger ride-hailing companies like Uber continues to erode OLA's market share. ANI Technologies finds itself constrained by a tight liquidity position and mounting operational losses, raising doubts about its ability to recover without new capital influx.

(With inputs from agencies.)