Ola Electric announced that it has received a sanction order from the Ministry of Heavy Industries, Government of India, for the release of incentives amounting to ₹366.78 Crore under the Production Linked Incentive Scheme for Automobile and Auto Components (PLI-Auto Scheme) for claims pertaining to FY 2024-25.
The sanction pertains to the Demand Incentive for the Determined Sales Value for FY 2024-25, and authorises a payment of ₹366.78 crore to be released through IFCI Limited, the designated financial institution for disbursement under the scheme. The incentive has been sanctioned in accordance with the applicable terms and conditions of the PLI-Auto Scheme, as amended from time to time.
The stock jumped over 5% following the announcement on Friday, December 26, 2025, reaching an intraday high of ₹37.28, which is expected to bolster margins and profitability.
The positive news marks a brief respite for the volatile stock, which has been on a sustained downtrend since its IPO in August 2024 at an issue price of ₹76 per share. The stock hit a fresh all-time and 52-week low of ₹30.76 just last week on December 18, 2025, and is currently trading over 60% below its 52-week high of ₹99.95.
On December 19, shares hit a 10% upper circuit after the company announced the founder had repaid a personal loan, eliminating all promoter-level share pledges and removing a major “overhang” for investors.
While the elimination of promoter pledges and the PLI certification are viewed as structurally positive developments, concerns remain over profitability, revenue decline, and execution challenges.
An Ola Electric spokesperson said, “The sanction of ₹366.78 crore under the PLI-Auto Scheme is a strong endorsement of Ola Electric’s manufacturing capabilities and our commitment to building world-class EV technology in India. This incentive recognises our sustained efforts in scaling domestic production, deepening localisation, and driving innovation across the electric mobility value chain. We remain committed to supporting the Government of India’s vision of making India a global hub for advanced automotive manufacturing and clean mobility.”
