Ola Electric gains 3% on production linked incentive sanction of Rs 73 cr

Shares of Ola Electric were in focus on Thursday, after it disclosed that it's subsidiary's claim for incentives under the PLI scheme for automobile has been approved by the government

Ola Electric share price: Shares of leading electric vehicle manufacturer Ola Electric Mobility were in demand in Thursday's trading session, in an otherwise volatile market.

  Ola Electric shares climbed 3.4 per cent to touch an intraday high of Rs 58.9 on the BSE today. At 9:51 AM, however, Ola Electric Mobility shares had pared their gains and were trading lower by 0.63 per cent, at Rs 56.57. In comparison, the BSE Sensex was lower by 298 points, or 0.40 per cent, at 73,432.23, around the same time.

  Shares of the company were in focus on Thursday after it disclosed late on Wednesday, March 5, that the Government of India's Ministry of Heavy Industries, has approved its subsidiary, Ola Electric Technologies', claim for incentives under the Production Linked Incentive Scheme for Automobile and Auto Components. 

 

  The company stands to receive Rs 73.74 crore towards the incentive for the Determined Sales Value of FY 2023-24, after the approval.

  The company, in an exchange filing, said, "We wish to inform you that, Ola Electric Technologies Private Limited, a wholly owned subsidiary of Ola Electric Mobility Limited, has received a sanction order dated March 5, 2025, from the Government of India, Ministry of Heavy Industries. The letter pertains to the release of Demand Incentive to IFCI Limited for disbursement of the incentive claim to Ola Electric Technologies Private Limited". 

  "The claim is for the Determined Sales Value of FY 2023-24 under the Production Linked Incentive Scheme for Automobile and Auto Components. The payment of Rs 73,74,36,612 has been sanctioned towards the incentive for the Determined Sales Value of FY 2023-24," it added.

  Also Read: Ola Electric gets IFCI notice for missing PLI-ACC scheme milestones

  The company had sold 25,000 units in February, and cornered a market share of over 28 per cent to hold onto its leadership position in the electric two-wheeler segment, according to reports. Ola Electric achieved the sales milestone on the back of its S1 portfolio of electric two-wheelers, and its network of 4,000 sales-and-service stores across the country.

  Ola Electric Q3 results

  The electric 2-wheeler manufacturer's net loss widened to Rs 564 crore for the third quarter of FY25, compared to a net loss of Rs 376 crore in the year-ago quarter. It had reported a net loss of Rs 495 crore for the quarter ending September 2024.

  The company's revenue from operations dropped 19.36 per cent to Rs 1,045 crore in the October to December 2024 quarter, down from Rs 1,296 crore in the same period last year (Y-o-Y). 

Meanwile, its automotive gross margin improved by 20 bps Q-o-Q to 20.8 per cent in Q3 FY25, despite a 14 per cent Q-o-Q decline in revenue to Rs 1,075 crore due to intensified competition and festive discounts.