Ola Electric Files ₹400 Crore PLI Claim for FY25 – Can This Boost Profitability and Market Lead?

Ola Electric, India’s largest electric two-wheeler manufacturer, has taken another big step in strengthening its financial position. The company has filed a ₹400 crore claim under the government’s Production-Linked Incentive (PLI) scheme for the automobile and auto components sector.

This claim, based on ₹3,000 crore in eligible sales for FY25, translates to an estimated 13–14% incentive payout. If approved, it will give Ola Electric a major liquidity boost and improve profitability at a time when the EV giant is gearing up for festive season demand.

Ola Electric’s PLI Advantage

• Ola is currently the only EV two-wheeler OEM consistently qualifying for PLI incentives, securing payouts for two years in a row.

• Earlier this year, the company bagged ₹73.7 crore in PLI benefits (March 2025), proving its leadership in scaling up domestic manufacturing.

• Ola’s Gen 3 scooter portfolio (S1 Air, S1 Pro, and others) has now received full PLI certification, which will further drive eligibility for incentives going forward.

Market Impact: Ola Shares on the Rise

The stock market responded positively to the news. Ola Electric shares jumped 3% on September 15, closing at ₹60.79 after touching an intraday high of ₹61.02.

• Since hitting a 52-week low of ₹39.60 in July 2025, the company’s stock has rebounded by nearly 54%, riding on strong sales momentum and PLI benefits.

Financial Perspective

Despite reporting a ₹428 crore consolidated net loss in Q1 FY26, Ola Electric highlighted that its auto business cash flow is now "nearly neutral," thanks to cost optimization and better working capital management.

The ₹400 crore PLI claim, once disbursed, will:

• Strengthen liquidity in the near term
• Support scale-up of EV production and supply chain
• Help absorb rising raw material costs
• Boost investor confidence ahead of future product launches
• Why This Matters for India’s EV Market

The PLI scheme, launched in 2021 with a ₹26,000 crore outlay, is designed to:

• Reduce import dependence,

• Push local EV manufacturing, and

• Support OEMs that achieve high domestic value addition.

For Ola Electric, this isn’t just a financial cushion—it’s a chance to accelerate market dominance during the festive season when EV demand typically spikes. Rivals like TVS iQube, Ather Rizta, and Bajaj Chetak are also pushing hard, but Ola’s PLI advantage could give it the upper hand.

What’s Next for Ola Electric?

• Expect higher profitability from Q2 FY26 as the certified Gen 3 portfolio dominates sales.

• With festive season offers and rising consumer demand for EV scooters, Ola could potentially surpass its FY24 sales records much earlier in the year.

• The brand’s continued focus on incentives, scale, and innovation will likely make it a key beneficiary of India’s EV adoption wave.