Shares of Ola Electric Mobility experienced a significant surge of 11.45% in Monday's session, with the stock price reaching Rs 60.24. Trading activity suggested a substantial increase in investor interest, marked by a notable jump in volume. The stock is a constituent of the Nifty Midcap 150 index. The EV maker stock has surged nearly 20 per cent in past five trading sessions.The stock has been trading in green after the company announced receiving Production Linked Incentive (PLI) certification for its Gen 3 scooter lineup. According to the company, this move is expected to boost margins and profitability starting this quarter.
Last week, Ola Electric announced that it has received certification confirming compliance with the eligibility assessment criteria under the PLI Scheme for the automobile and auto components sector.The certification applies to all seven models in its Gen 3 S1 scooter range, which contributes to over half of its sales. With this approval, both its Gen 2 and Gen 3 lineups are now PLI-certified. The certification makes the company for eligible for incentives ranging between 13% and 18% of the determined sales value (DSV) until 2028. Ola stated that this benefit will directly enhance its cost structure, improve margins, and move it closer to achieving EBITDA positivity.
The Gen 3 range features 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 models, which together account for the majority of its current sales. The certification is anticipated to substantially boost profitability starting from Q2 FY26.“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," company spokesperson said.Ola Electric Mobility announced its June quarter results, reporting a sharp decline in performance as its net loss deepened and revenue fell by half compared to the same period last year.