Ola Electric Shares Rally 7% On PLI Nod For Gen 3 Scooters

SUMMARY

Shares of electric vehicle major Ola Electric jumped as much as 7% to INR 52 apiece during the intraday trading session on the BSE today

The rally came after the company secured PLI certification for its Gen 3 scooter portfolio

Ola Electric’s Gen 2 and Gen 3 scooter portfolios are now PLI-certified, and the company expects that the move will boost its profitability from Q2 FY26 onwards

Shares of electric vehicle major Ola Electric jumped as much as 7% to INR 52 apiece during the intraday trading session on the BSE today. The rally came after the company secured PLI certification for its Gen 3 scooter portfolio.

With this, Ola Electric’s Gen 2 and Gen 3 scooter portfolios are now PLI-certified, and the company expects that the move will boost its profitability from Q2 FY26 onwards.

“Securing PLI certification for our Gen 3 scooters, which form the bulk of our sales, is a critical step towards profitability. This will directly strengthen our cost structure and margins, enabling us to deliver sustainable growth,” an Ola Electric spokesperson said.

The PLI certification makes Ola Electric eligible for incentives ranging from 13% to 18% of the determined sales value (DSV) until 2028. The company said that the award will directly strengthen its cost structure and margins as it aims to turn EBITDA positive.

At the end of last week, the market capitalisation of Ola Electric stood at $2.38 Bn, and the stock prices surged almost 12% during the week on the BSE.

To boost EV adoption and strengthen the domestic manufacturing ecosystem, the Centre offers demand incentives to EV makers. The government rolled out the PM E-DRIVE scheme last year with an outlay of INR 10,900 Cr, offering incentives across categories, including electric two-wheelers.

Earlier this year, the ministry of heavy industries issued a notice to the EV major for failing to meet its commitments under the National Programme on Advanced Chemistry Cell (ACC) Battery Storage PLI scheme.

Ola’s Stronghold On India’s EV Market Started To Slip?

Ola Electric might take some comfort from receiving the PLI compliance certification, yet challenges remain. Even though it claimed that its auto business turned EBITDA positive in the June quarter of FY26, the overall results raise red flags.

Its consolidated net loss in Q1 FY26 widened by 23% YoY to INR 428 Cr, while revenue from operations saw a 50% drop to INR 828 Cr from INR 1,644 Cr in the same quarter last year.

Moreover, the company’s market share in the e-2W sector dropped to 19.6% in the quarter under review, which once touched the 48.6% mark at its peak. Ola started to lose its might in the market after the entry of legacy players like TVS Motor, Bajaj Auto, and Hero MotoCorp.