Ola Electric shares rise nearly 20% in last week, here’s what is driving the rally

Bhavish Aggarwal-led Ola Electric mobility shares rallied as much as 5% on Friday to ₹57.50, taking weekly gains to nearly 20%. The shares touch their intraday high of ₹57.50 and an intraday low of ₹54.32. This gain comes after the company secures PLI certification for Gen 3 scooters; a profitability boost is expected from Q2 FY26.

Shares of the firm had touched their one-year high of ₹157.40 apiece on August 20, 2024, while their 52-week low of ₹39.60 was hit on July 14, 2025.

Here are some key developments driving the rally for Ola Electric:

Ola Electric on Tuesday secured Production Linked Incentive (PLI) certification for its Gen 3 scooter portfolio, a move expected to boost profitability from the second quarter of fiscal 2026.

The certification, granted by the Automotive Research Association of India (ARAI) under the Ministry of Heavy Industries, covers all seven models in Ola’s Gen 3 scooter lineup, including its flagship S1 Pro and S1 X variants.

With both its Gen 2 and Gen 3 portfolios now PLI-compliant, the company is eligible for incentives ranging from 13% to 18% of determined sales value until 2028.

Another key development is that government think tank Niti Aayog called a meeting to address the slow adoption of electric motorcycles in India, Hindu BusinessLine reported.

The meeting is expected to see participation from major two-wheeler manufacturers, including Hero MotoCorp, Bajaj Auto, TVS Motor, Ola Electric, Ather Energy, and Revolt Motors. According to reports, the primary focus will be on accelerating the electrification of motorcycles, a segment that dominates India’s two-wheeler market but has so far seen negligible adoption of electric models.

Last week, founder Bhavish Aggarwal shared plans for new launches, including products with the 4,680 Bharat cell, which offers 15 years of battery life, five times more capacity, and 80% charging in 15 minutes, to be available by Navratri from its Tamil Nadu plant. Ola is targeting 25-30% of India’s two-wheeler EV market with vertical integration, new scooters, motorcycles, and ferrite motor technology to cut the use of rare earth magnets.

Aggarwal had also stressed the need to expand raw material sourcing from China to Japan, Korea, and Australia. Ola’s motorbike has received strong demand and is being expanded gradually, while the company recently launched the Ola Pro Sport scooter with the Bharat cell and ferrite motor tech.

Ola Electric Mobility posted a consolidated net loss of ₹428 crore for the April-June quarter of the financial year 2025-26. The firm had reported a net loss of ₹347 crore in the same period last year. Ola’s revenue from operations stood at ₹828 crore in Q1 FY26, declining 50% from ₹1,644 crore in Q1 FY25. The company’s EBITDA loss for the reporting quarter stood at ₹237 crore in contrast to ₹205 crore year-on-year (YoY). Ola said that its auto segment cash generation was within reach: “Q1FY26 nearly neutral, structural improvements in opex and working capital.”

The company expects that by the end of FY26, it will have fully utilised the 1.4 GWh and installed the remaining capacity to get to 5 GWh and scale consumption to 5 GWh through FY27.

The EV maker has also successfully developed Heavy Rare Earths (HRE)-free motors, which are scheduled for production deployment in Q3 FY26.

Its Q1 auto GM of 25.6% was largely without PLI, and from Q2 onwards we should get the PLI benefit too, leading our exit GM for FY26 to be around 35-40%.