Ola Electric stock jumps 5% on ₹367 crore PLI boost
- 26th December 2025
- 12:00 AM
- 3 min read
Summary
Ola Electric shares surged over 5% after the company received government approval for ₹366.78 crore under the PLI-Auto scheme for FY25. The incentive supports domestic EV manufacturing and improves cash visibility, adding to recent steps taken to strengthen the company’s balance sheet.Mumbai | 26 December
Shares of Ola Electric Mobility Limited jumped sharply in early trade on Friday after the company said it had received a sanction order for incentives worth ₹366.78 crore under the government’s Production Linked Incentive (PLI) scheme for automobiles.
On the NSE, Ola Electric stock rose as much as 5.37% to around ₹37.25, before paring some gains.
What does the incentive mean?
This incentive is being seen as a direct support to Ola Electric’s margins and cash flows, especially at a time when the stock has remained under pressure for most of the year.
Under the PLI-Auto scheme, companies receive incentives based on their eligible vehicle sales. This effectively lowers production costs and helps improve operating margins, instead of relying only on higher sales volumes.
For Ola Electric, which has reported losses and faced investor concerns around profitability, this incentive provides tangible support to the profit and loss statement. The incentive also helps cushion cash outflows in a capex-intensive phase, as the company continues to invest heavily in EV manufacturing, localisation and technology.
In addition, the company is also among the beneficiaries under the battery PLI framework, supported by its established cell manufacturing capacity.
Together, these incentives position Ola Electric as a key participant in India’s clean-mobility and domestic manufacturing push.
What Ola said
Commenting on the development, the company said the incentive validates its manufacturing capabilities and its focus on building EV technology in India. It added that the support aligns with the government’s push to make India a global hub for advanced automotive manufacturing and clean mobility.
Other Recent developments in Ola
Last week, Ola Electric confirmed a one-time monetisation of a portion of the founder’s personal shareholding to fully repay a promoter-level loan of about ₹260 crore. This led to the release of all previously pledged shares, taking promoter pledge to zero, while promoter ownership remains above 34.5%.
Separately, the company has also begun expanding its Hyperservice programme, under which select service centres offer same-day vehicle servicing, starting with Bengaluru.
Market view
The PLI incentive, combined with steps to clean up promoter-level leverage, has been viewed positively by the market. Investors will now track execution, sales momentum and margins as the EV space becomes increasingly competitive.
