Ola Electric Share Price Jumps 11% on Sep 1, PLI Certification Sparks Investor Optimism

The rally in Ola Electric’s share price follows the company’s announcement of securing Production Linked Incentive (PLI) certification for its Gen 3 scooter range.

PLI Certification Boosts Margins and Profitability Outlook

The rally follows the company’s announcement of securing Production Linked Incentive (PLI) certification for its Gen 3 scooter range. This approval confirms compliance with eligibility criteria under the PLI scheme for the automobile and auto component sector.

The certification covers all seven Gen 3 S1 scooter models, which account for more than half of Ola’s sales. With both Gen 2 and Gen 3 scooters now certified, Ola becomes eligible for incentives ranging between 13% and 18% of the determined sales value (DSV) until 2028.

According to the company, this move is expected to strengthen margins, reduce costs, and accelerate the path to EBITDA profitability. A company spokesperson noted that the certification represents a “critical step” toward achieving sustainable growth while keeping Ola’s EVs competitively priced.

Ola Electric Q1 FY25 Results

Interestingly, the share price momentum comes even as Ola reported disappointing June quarter results. The company’s net loss widened to ₹428 crore, compared to a ₹347 crore loss in the same quarter last year. Revenue also halved year-on-year, signalling near-term financial challenges.

OLA Electric Share Price Performance

Ola Electric Mobility Ltd’s share price climbed 11.69% to ₹60.37 in Monday’s session, touching an intraday high of ₹61.20. The stock opened at ₹55.20 against its previous close of ₹54.05 and maintained strong upward momentum, with a volume-weighted average price (VWAP) of ₹58.56.

Read More: Ather Energy Unveils New Scooter Platform and AtherStack 7.0 Software.

Conclusion

While the PLI certification has clearly lifted investor sentiment and fueled a rally in Ola Electric’s stock, the company still faces significant operational and financial hurdles. The coming quarters will be crucial to see if the cost benefits from incentives translate into improved profitability and sustained market confidence.

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