Shares of Ola Electric Mobility Ltd rose 5% to a day’s high of Rs 51.15 on 26th August after the company announced it had secured PLI certification for its Gen 3 scooter portfolio.

Ola Electric announced that all seven of its S1 Gen 3 scooters have received PLI certification. The Gen 3 portfolio is crucial for the company as it contributes 56% of its overall sales.

With the certification, Ola Electric becomes eligible for incentives of 13% to 18% of sales value till 2028. Now, both its Gen 2 and Gen 3 scooters are certified under PLI benefits, with the majority of sales coming from the Gen 3 range.

The company stated that this will significantly boost profitability starting from the current quarter. It added that the certification supports its goal of turning the auto business EBITDA positive, while keeping EVs competitively priced for customers.

In the June quarter, Ola Electric reported a net loss, although it narrowed sequentially, even as it widened year-over-year. Revenue was down by half compared to last year but improved from the previous quarter, while gross margins expanded both year-over-year and sequentially.

At 11:29 AM, the shares of Ola Electric were trading 4.30% higher at Rs 50.66 on NSE.

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