The stock of Ola Electric of India went up by 20% this week after the company announced that it has got the PLI certification for its Gen 3 scooters. This step is expected to increase the company’s profits and keep the margins high, besides which new releases and decreasing losses give positive signs for the growth of the two-wheeler EV market.
Ola Electric Shares Surge
Shares of India’s Ola Electric Mobility went up by 19.59% this week, with a 5.24% increase in Friday’s session. The announcement that PLI certification has been obtained for the Gen 3 scooter portfolio is the main reason for such a market reaction. The news is directly expected to improve margins and profitability thereby providing a positive vibe to the investors amidst a few recent financial challenges.
PLI Certification Strengthens Profitability Outlook
Earlier this week, Ola Electric declared that it had received a certificate of compliance for eligibility criteria of the PLI (Production Linked Incentive) Scheme in India for the automobile and auto-components sector. The certificate embraces all seven models for the Gen 3 S1 scooter series, which, according to the company, have a combined market share of over 50% of total sales.
As a result of this acknowledgment, Ola Electric can now enjoy the benefit of incentives which will be from 13% to 18% of her sales value calculated for the next 5 years i.e. up to 2028. Management confirmed that it would rather quickly transform the cost structure, thus provide more breathing room for margins, and also sooner reach the stage of positive EBITDA.
Gen 3 Scooter Portfolio Coverage
The PLI permission is extended to included are the models 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 of Ola Electric. These scooters constitute the primary source of the company's revenue. The reward for incentives is expected to become visible in the accounts from the second quarter of 26 fiscal year i.e. when more profitability is achieved.
Also Read: Don’t Miss This: Ola Electric’s Biggest Monthly Gain in Sight
New Launches at Annual Event
In its annual “Sankalp” event, Ola Electric projected a wide array of products aimed at gaining a significant market share in the future from India’s highly competitive EV sector. Among the primary introductions were:
S1 Pro Sport (5.2 kWh and 4 kWh) S1 Pro+ 5.2 kWh Roadster X+ 9.1 kWh was one of the products introduced at the event, powered by the 4680 Bharat Cell deliveries for the S1 Pro Sport are anticipated in January 2026 whereas the S1 Pro+ 5.2 kWh and Roadster X+ are expected to be ready for sales during the Navratri festival of 2025.
Bhavish Aggarwal, the Chairman, restated the company's goal of being able to take a 25-30% share of the Indian EV market, specifically for two-wheelers. He stated that they plan on achieving it by completely owning the supply chain and having a strong lineup of products.
Financial Performance: Narrowing Losses in Q1FY26
Ola Electric reported its first quarter results for the fiscal year 2025-26 as well. The company made a loss of 428 crore rupees on a consolidated basis, which was less than half of the 870 crore rupees loss of the previous quarter. However, the loss was still 81 crore rupees more than it was in the first quarter of the last financial year.
Year-on-year, the company’s revenue for Q1 dropped from ₹1,644 crore to ₹828 crore, representing a decrease of 49.6%. The decrease was primarily caused by lower sales volumes and softer prices in the EV segment. Despite this fall in revenue, the narrowing of losses has been justified by the company due to better operating efficiencies, which is also the consensus by analysts.
Also Read: India’s EV Giants Signal a New Era of Stock Market Growth
Stock Market Performance
The stock price of Ola Electric has been very unstable over the last few months. In August 2025, after two successive months of losses, the shares regained more than 37% of their value, and the price rose sharply. However, the stock year-to-date is still down by 34% and has lost 56% of its value over the last twelve months. After reaching a 52-week high of ₹181 in August 2024, the shares had a low of ₹39.58 in July 2025.
The rally led by PLI certification is a sign of investor confidence, but the continuation of this trend depends on a number of factors such as return to normal demand, positive cash flow from operations, and successful new products.
The surprising rise in Ola Electrics shares is a clear demonstration of how government support programs like PLI can quickly change market and corporate actors views of the profitability of the Indian EV sector. Given the already scheduled introduction of new car models and the company’s improving financial condition, the analysts will be watching very closely whether Ola Electric manages to keep its recovery in motion.
FAQ’s
Q1. Why did Ola Electric shares rise this week?
Just after the news of PLI certification for the Gen 3 scooters of Ola Electric as well as the expected improvement of margins, the shares jumped by 20%.
Q2. What new models has Ola Electric announced?
Ola has introduced the battery electric scooter models S1 Pro Sport, S1 Pro+ 5.2 kWh, and Roadster X+ 9.1 kWh at the Sankalp event.
Q3. How did Ola Electric perform financially in Q1FY26?
The loss was reduced to 428 crore; however, the revenues were almost halved compared to the previous year largely due to the weak demand.
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