Synopsis:
PLI certification is awarded to Ola Electric Mobility Limited for the Gen 3 scooter portfolio, projected to improve profitability from Q2FY26 onwards.
The shares of India’s largest pure play EV company, which manufactures and produces both electric vehicles and their key components, such as battery packs, motors, and vehicle frames, which brought curiosity among investors after securing PLI certification for Gen 3 Scooter Portfolio.
With a market capitalization of Rs.22,517.29 crore, the shares of Ola Electric Mobility Limited closed at Rs.50.80 and made a intraday high of Rs. 51.80 surging 6.60 percent from the previous day’s closing price of Rs. 48.59.
PLI Scheme Recognition
Ola Electric Mobility Limited has been granted production-linked incentive certification for the Gen 2 and Gen 3 scooter portfolio from the Automotive Research Association of India under the Ministry of Heavy Industries, Government of India, which allows the company to absorb incentives from 13 to 18 percent from the determined sales value until 2028.
The portfolio of Gen 3 scooters includes the seven Ola S1 Gen 3 scooters, which make a large portion of Ola electric sales. This recognition is expected to strengthen profitability starting from Q2FY26.In the annual Sankalp event, the company revealed new models with the prices ranging from Rs.1,49,999 to 1,89,999 lakhs.
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Management Commentary
Ola Electric Mobility Limited spokesperson commented as follows: “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. With our auto business targeted to turn EBITDA positive, the certification acts as a strong catalyst to achieve that goal while ensuring our customers continue to get the best-in-class EVs at highly competitive prices.”
About Company
Ola Electric Mobility Limited is a leading Indian EV manufacturer known for its fully integrated approach to building electric vehicles and key components, including battery cells.
Its Tamil Nadu-based Ola futurefactory is being developed as a major EV hub, supported by a Battery Innovation Centre in Bengaluru and global R&D teams in India, the UK, and the US. With over 4,000 stores and a strong online platform, Ola operates as the country’s largest company-owned network of automotive experience centres.
Financial Outlook
Revenue from operations shrank from Rs.1,644 crore in Q1FY25 to Rs.828 crore in Q1FY26, while net loss increased from Rs.374 crore to Rs.428 crore. The company has reported an ROE of negative 108 percent and an ROCE of negative 28.1 percent.
Written by Jhanavi Sivakumar
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