Ola Electric Jumps As PLI Nod Covers Gen 2 And Gen 3 Scooters - Analyst Sees Margin Boost, Rally Potential

Ola Electric shares extended gains after the company said it has secured Compliance Certification under the Production Linked Incentive (PLI) scheme for its Gen 3 electric scooter lineup. 

The approval, granted by the Automotive Research Association of India (ARAI) under the Ministry of Heavy Industries, now makes Ola's entire Gen 2 and Gen 3 scooter portfolio PLI-certified.

At the time of writing, Ola Electric was trading at ₹56.25, up 2.6%, extending its two-day winning streak.

SEBI-registered analyst Pradeep Carpenter said that Ola's Gen 3 scooters, which comprise the core of its sales volumes, are now eligible for incentives of 13–18% under the government scheme, with certification valid until 2028.

According to Carpenter, the PLI nod is strategically significant as it strengthens margins, supports volumes, improves cash flow, and is expected to accelerate margin recovery from the second quarter onwards. 

He added that while competition in India's EV two-wheeler market is intensifying, the certification provides Ola with a cost advantage to sustain pricing flexibility and defend its market share.

On the technical side, Carpenter highlighted immediate resistance at ₹60 and support around ₹45. He said a breakout above resistance could extend the rally further, while sustained support indicates strong bullish sentiment.

What Is The Retail Mood?

On Stocktwits, retail sentiment for Ola Electric was 'extremely bullish' amid 'extremely high' message volume.

Ola Electric's stock has declined 34.8% so far in 2025.

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