Ola Electric Mobility Ltd. on Tuesday said it is eligible for benefits under the government's Production Linked Incentive (PLI) scheme for its top selling Gen 3 scooter portfolio.
The Bhavish Aggarwal-led company received the 'Certification for Compliance' with eligibility assessment requirements under the PLI scheme for automobile and auto components sector, according to a stock exchange filing.
The certification was granted by the Automotive Research Association of India under the aegis of the Ministry of Heavy Industries to all seven Ola S1 Gen 3 scooters. The PLI certification makes Ola Electric eligible for incentives ranging from 13% to 18% of the determined sales value (DSV) until 2028.
The Gen 3 portfolio comprise 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 and represents a majority of the company's current sales, as per a statement.
S1 Pro Sport deliveries are set to commence in January 2026, while deliveries of S1 Pro+ 5.2 kWh start this Navratri.
Certification Expected To Boost Margins
Ola Electric expects the PLI certification to significantly enhance profitability from the second quarter of the current financial year.
“Securing PLI certification for our Gen 3 scooters, which form the bulk of our sales, is a critical step toward profitability. This will directly strengthen our cost structure and margins, enabling us to deliver sustainable growth," a spokesperson said.
Ola Electric Mobility's net loss stood at Rs 428 crore during the first quarter, compared with Rs 347 crore loss in the year-ago period. Auto gross margins improved from 13.8% in Q4 FY25 to 25.6% in Q1.
The newly introduced Gen 3 scooters accounted for 80% of total scooter sales during the quarter.
With the PLI benefits beginning from Q2 for Gen 3 product portfolio, gross margin is projected to rise to 35-40%, and the company anticipates full-year auto Ebitda of above 5%.
Ola Electric Share Price Up
Ola Electric share price rose as much as 5.3% during early trade to Rs 51.15.
Ola Electric share price rose as much as 5.3% during early trade to Rs 51.15, posting a second session of gain. The benchmark Nifty 50 was down 0.7%.
The relative strength index stood at 73, close to the overbought zone. The total traded value was Rs 921.2 crore on the NSE.
The stock has fallen 41% so far this year.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
