Ola Electric Files For INR 400 Cr PLI Incentive On FY25 Sales: Report

EV major Ola Electric has reportedly filed a claim of around INR 400 Cr under the central government’s production-linked incentive (PLI) scheme for FY25. According to a report by PTI, the claim is based on eligible sales of about INR 3,000 Cr during the fiscal.

With the incentive calculated at a rate of 13–14%, the payout is expected to strengthen Ola’s liquidity position and support its financial performance in the coming quarters. The company had earlier received about INR 74 Cr under the PLI-auto scheme for FY24. In its annual report for FY25, the company said that auto component PLI-certified products also began contributing to gross margin expansion in H2 FY25. 

Meanwhile, Ola Electric registered 3.6 Lakh EVs in FY25, up 9% from 3.3 Lakh units in the previous fiscal.

Launched in 2021, the PLI scheme for the automobile and auto components sector carries an outlay of about INR 26,000 Cr over five years. According to the Ministry of Heavy Industries (MHI), it seeks to boost manufacturing of Advanced Automotive Technology (AAT) products, drive deeper localisation, and build robust domestic and global supply chains.

Besides, the MHI also launched the PLI Scheme for Advanced Chemistry Cell (ACC) manufacturing in 2021. With an outlay of INR 18,100 Cr, this scheme incentivises companies to set up domestic battery production facilities. 

To note, Ola Electric is an approved participant under both the PLI Scheme for Advanced Chemistry Cell (ACC) manufacturing and the PLI Scheme for Automobile and Auto Components. “These schemes are strategically aligned with our vertically integrated model rewarding scale, localisation, and innovation,” the company’s annual report read. 

Earlier in August, the EV major also secured PLI certification for its Gen 3 scooter portfolio. The PLI certification makes Ola Electric eligible for incentives ranging from 13% to 18% of the determined sales value (DSV) till 2028. Back then, the company said that this award will directly enhance its cost structure and profit margins as it focuses on achieving EBITDA profitability.

On the financial front, Ola Electric’s net loss widened to INR 428 Cr in Q1 FY26 from INR 347 Cr in the year-ago quarter. Revenue dropped nearly 50% to INR 828 Cr during the quarter under review from INR 1,644 Cr in the same quarter last year. Sequentially, operating revenue jumped 35.5% from INR 611 Cr.

Shares of Ola Electric ended today’s trading session up 2.85% at INR 60.57.