Ola Electric stock has surged sharply, lifted by optimism around its PLI certification win.
Gen 3 scooters form the bulk of sales, so incentives should significantly bolster profitability from FY26.
While current earnings remain in the red, the company remains positive of inching closer to breakeven.
Shares of Ola Electric Mobility stretched their winning streak to a fifth straight session on 29 August, climbing another 5% on growing optimism over the company’s growth prospects. The rally comes after the Bhavish Aggarwal-led firm secured Production Linked Incentive (PLI) certification for its Gen 3 scooter range.
With the latest surge, Ola’s stock has now jumped nearly 22% in just five sessions, recovering more than 45% from its 52-week low of ₹39.60.
India’s largest pure-play EV maker announced that its Gen 3 scooter line-up has been certified by the Automotive Research Association of India (ARAI), under the Ministry of Heavy Industries, for compliance with the eligibility requirements of the PLI scheme for automobiles and auto components. The certification covers all seven models in the Ola S1 Gen 3 portfolio, including the 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.
Gen 3 scooters currently account for 56% of Ola Electric’s sales volumes, making the approval particularly significant. Together with its Gen 2 line-up, already PLI-certified, the company now qualifies for incentives worth 13–18% of sales value until 2028. Ola said this would materially lift profitability from the second quarter of FY26 onwards.
Commenting on the development, an Ola Electric spokesperson said, “Securing PLI certification for our Gen 3 scooters, which form the bulk of our sales, is a critical step towards profitability. This directly strengthens our cost structure and margins, enabling sustainable growth. With our auto business on track to turn Ebitda positive, this certification acts as a strong catalyst while ensuring customers continue to receive best-in-class EVs at competitive prices.”
In Q1FY26, the company posted a net loss, though the figure narrowed compared with the previous quarter even as it widened year-on-year. Revenue halved from a year earlier but improved sequentially, while gross margins expanded both year-on-year and on quarter.
