Ola Electric Mobility’s stock gained nearly 20% this week, driven by its recent PLI (Production Linked Incentive) certification for the Gen 3 scooter portfolio and supportive EV policy cues. The share price climbed about 5% on Friday, reaching around ₹57.50, pushing the weekly gains to a robust 20%.
What’s Fueling the Investor Optimism?
- Full PLI Coverage: The Gen 3 lineup, comprising seven models that form the bulk of sales, received compliance certification from ARAI under the Ministry of Heavy Industries. This now makes both Gen 2 and Gen 3 scooters PLI-eligible.
- Financial Boost: The PLI certification makes Ola Electric eligible for incentives of 13–18% of the determined sales value, available until 2028—expected to materially strengthen margins from Q2 of FY 2026.
- Policy Tailwinds: Positive buzz around a potential GST cut on entry-level EVs and Niti Aayog’s meetings to accelerate two-wheeler electrification further bolstered sentiment.
Stock Momentum in Perspective
| Metric | Details |
|---|---|
| Weekly Gain | ~20% |
| Intraday Friday Jump | ~5%, to around ₹57.50 |
| Sessions Gained | Rally extended across 2–5 sessions, cumulatively 15–22% up depending on source |
| Recovery Range | Recovered ~41–45% from 52-week lows near ₹39.6–₹39.58 |
This powerful rebound came despite earlier market pressures and reflects renewed confidence in the EV maker’s potential to approach profitability.
What It Means for Ola Electric
- Margin Expansion Ahead: With PLI incentives and economies of scale, the path to EBITDA positivity in the auto business is clearer.
- Stronger Cost Positioning: PLI financing enables Ola to price aggressively yet maintain healthier margins in a competitive space.
- Market Share Recovery: Positive investor sentiment and policy support could help the company reclaim lost ground in the crowded EV market.
