Ola Electric announced that its Gen 3 scooter portfolio has been awarded PLI (Production Linked Incentive) certification under India’s automobile and auto components scheme, administered by ARAI. This approval makes the company eligible for incentives ranging from 13% to 18% of the determined sales value through 2028
Stock Market Reacts: Shares Climb Amid Bold Profitability Signal
Following the announcement, Ola Electric’s shares saw a notable gain:
- Shares rose approximately 6.6%, reaching around ₹51.80 on the BSE.
- Other reports observed the stock climbing around 5%, touching ₹51.10, indicating strong investor confidence.
Why This Certification Matters
1. Quick Returns Through Incentives
With Gen 3 scooters forming the majority of Ola’s current sales, the PLI incentives offer immediate cost advantages and margin improvement starting Q2 FY26.
2. EBITDA Turnaround Support
Ola has targeted EBITDA positivity for its auto business. The PLI certification is positioned as a vital catalyst in meeting this goal by enhancing cost structure and profitability.YourStory
3. Dominance of Gen 3 in Sales
Ola’s Gen 3 portfolio includes seven flagship models—S1 Pro 3 kWh, S1 Pro 4 kWh, S1 Pro+ 4 kWh, S1 X 2 kWh, S1 X 3 kWh, S1 X 4 kWh, and S1 X+ 4 kWh—all of which now qualify for PLI benefits. These models represent a substantial share of Ola’s volume.
4. Long-Term Financial Boost
With incentives applicable until 2028, Ola gains sustained financial leverage, bolstering its long-term growth trajectory in the competitive EV market
Summary at a Glance
| Highlight | Key Insight |
|---|---|
| What | Gen 3 Ola scooters obtain PLI certification from ARAI |
| Share Market Reaction | Stock rose between 5%–6.6%, trading in the ₹51-52 range |
| Incentives | 13%–18% of sales value till 2028 |
| Sales Impact | Gen 3 models make up majority of Ola’s current volumes |
| Financial Implication | Strong catalyst for EBITDA positivity from Q2 FY26 onward |
