Ola Electric shares gain 3% as ₹7,240 crore PLI window through 2031 boosts cell business outlook
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The shares of Ola Electric Mobility gained nearly 3% in Wednesday’s trade after the Ministry of Heavy Industries (MHI) approved revised timelines under the Advanced Chemistry Cell (ACC) Production Linked Incentive (PLI) scheme, giving the electric two-wheeler maker access to incentives of up to ₹7,240 crore through calendar year 2031. The stock climbed 2.92% to hit an intraday high of ₹40.80 on the BSE, reflecting an initial positive response to the development.
The revised framework gives Ola Electric’s wholly owned subsidiary, Ola Cell Technologies Private Limited (OCT), a full five-year incentive window for its 20 GWh allocation. PLI disbursements will be made quarterly from the next quarter, potentially creating a recurring financial inflow as the company scales its cell manufacturing operations.
Bhavish Aggarwal says PLI changes cell-business economics
Ola Electric Chairman and Managing Director Bhavish Aggarwal said the revised timeline goes beyond simply extending the company’s deadline and changes the economics of its cell business.
“The revised timeline is more than an extension. It transforms the economics of our cell business by converting an earlier milestone overhang into a five-year, quarterly PLI opportunity of up to ₹7,240 crore,” Aggarwal said. He added that Ola Electric had not factored any PLI incentives into its business projections after overshooting the original timelines.
Aggarwal said the company is now ahead of the government’s revised schedule and expects to access the full potential of the incentive programme, with disbursements beginning as early as next quarter.
6 GWh cell capacity targeted this quarter
Ola Electric currently has 2.5 GWh of installed cell-manufacturing capacity, while another 3.5 GWh is under installation. The company expects to reach 6 GWh by the end of the ongoing quarter, ahead of the revised December 2026 deadline for the initial capacity milestone.
The company is developing a multi-chemistry cell platform covering nickel manganese cobalt (NMC) and lithium iron phosphate (LFP) technologies, with a focus on indigenous R&D, greater localisation of battery materials and improved manufacturing yields.
Yesterday, Ola Electric's stock had closed at ₹39.70 on August 11, according to market data, after falling 6% on August 10 following the company’s June-quarter results. Ola Electric reported a Q1 FY27 net loss of ₹336 crore, while revenue from operations declined 45% year-on-year.