Ola Electric Stock Rises 15% in Two Days, PLI Certification Boosts Profit Outlook

Ola Electric obtained PLI verification

Ola Electric’s Gen 3 electric scooter series has received certification under the government Production Linked Incentive (PLI) scheme, covering all seven models. This certification makes the company eligible for a sales value incentive ranging from 13% to 18%, expected to last until 2028.

Positive impact on profitability

The Gen 3 series models account for 56% of Ola Electric’s current sales. After obtaining PLI verification, the production costs of these models will be effectively reduced, which is expected to enhance gross margins and overall profitability.

Market Reaction and Future Outlook

Despite Ola Electric’s stock performing strongly recently, the company’s financial situation still requires attention. For example, in the first quarter of 2025, the company’s net loss was 42.8 billion rupees, which, although narrowed, still indicates challenges to profitability.

Conclusion: Focus on profitability and market competition

Ola Electric’s profit outlook has improved after obtaining PLI verification, but attention still needs to be paid to its financial situation and market competition. Investors should closely monitor the company’s financial statements and industry trends to make informed investment decisions.