S&P Global Downgrades OLA Cabs to 'CCC' Over Covenant Breach Risk

• S&P Global Ratings downgraded ANI Technologies (OLA Cabs) to 'CCC' with a negative outlook, citing a heightened risk of covenant breach.
• The downgrade is due to ANI Tech's diminishing cash buffer, estimated to fall below Rs 2.0 billion by Q4 FY26, and ongoing operating losses.
• S&P expects ANI Tech's adjusted EBITDA loss to rise to Rs 5.9 billion in FY26, driven by shrinking revenues and high incentives.
• OLA Cabs is losing market share to competitors like Uber and Rapido, with its share in the four-wheeler segment dwindling to 20-25% from over 50% two years ago.
• ANI Tech faces limited options for liquidity, including delayed IPO plans and challenges with its Ola Electric stake, making it difficult to withstand cash burn.

Why It Matters: ANI Tech's severe financial distress signals high risk for a major ride-hailing service.