Ola Electric Mobility Ltd. shares continued their upward trajectory, gaining nearly 4% for the third consecutive session following a significant development in the company's product certification. The electric vehicle manufacturer received Production Linked Incentive (PLI) scheme certification for its Gen 3 scooter portfolio, marking a crucial milestone in its growth strategy.

PLI Certification Details

The Automotive Research Association of India (ARAI) granted 'Certification for Compliance' to all seven models in Ola's S1 Gen 3 scooter lineup. This certification was awarded under the aegis of the Ministry of Heavy Industries, positioning Ola Electric to benefit from substantial government incentives.

Financial Implications

The PLI certification makes Ola Electric eligible for incentives ranging from 13% to 18% of determined sales value until 2028. This financial boost is expected to enhance the company's competitiveness in the rapidly growing electric vehicle market in India.

Product Portfolio

Ola's Gen 3 portfolio, which represents a majority of the company's sales, includes:

• S1 Pro model
• S1 X variants with different battery capacities

Stock Performance

As of the latest trading session:

• Ola Electric shares traded 2.72% higher at Rs 52.20
• Trading volume was 2.3 times the 30-day average
• The stock has experienced a significant decline of 58.47% over the past 12 months

Analyst Outlook

Current analyst coverage for Ola Electric shows a mixed sentiment:

The average price target implies a 10.70% upside potential from the current trading price.

The recent PLI certification appears to have boosted investor confidence in Ola Electric's growth prospects. However, the company's stock performance over the past year suggests it faces challenges in a competitive and evolving electric vehicle market. As the company continues to expand its certified product line, investors and analysts will be closely watching its ability to capitalize on government incentives and translate these developments into sustainable growth and profitability.

Ola Electric Mobility , India's largest pure-play EV company, has achieved a significant milestone in its journey towards profitability. The company has successfully obtained Production Linked Incentive (PLI) certification for its Gen 3 scooter range, a move that is expected to enhance its financial performance in the coming years.

PLI Certification Details

The certification, granted by the Automotive Research Association of India (ARAI) under the Ministry of Heavy Industries, covers all seven models in Ola's S1 Gen 3 scooter portfolio. This latest development means that both Ola's Gen 2 and Gen 3 scooter ranges are now PLI-certified.

Impact on Profitability

The PLI certification is set to have a substantial impact on Ola Electric's bottom line. The company anticipates that this certification will contribute to improved profitability beginning from Q2 FY26. Under the PLI scheme, Ola Electric will be eligible for incentives ranging from 13.00% to 18.00% of the determined sales value (DSV) until 2028.

A spokesperson for Ola Electric Mobility emphasized the significance of this achievement, stating, "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."

Gen 3 Portfolio

The Gen 3 portfolio, which represents the majority of Ola Electric's current sales, includes:

• S1 Pro 3 kWh
• S1 Pro 4 kWh
• S1 Pro+ 4 kWh
• S1 X 2 kWh
• S1 X 3 kWh
• S1 X 4 kWh
• S1 X+ 4 kWh

Future Plans

In addition to the PLI certification news, Ola Electric has recently announced new models at its annual 'Sankalp' event. These include:

• S1 Pro Sport with 5.2 kWh and 4 kWh options
• S1 Pro+ 5.2 kWh
• Roadster X+ 9.1 kWh powered by the 4680 Bharat Cell

The introductory prices for these new models range from ₹1,49,999 to ₹1,89,999. Deliveries for the S1 Pro Sport are scheduled to begin in January 2026, while the S1 Pro+ 5.2 kWh and Roadster X+ 9.1 kWh will start deliveries during the upcoming Navratri festival.

As Ola Electric continues to expand its product lineup and strengthen its financial position through initiatives like the PLI certification, the company appears well-positioned to capitalize on the growing demand for electric vehicles in India.