Stock Below Rs 40: Bhavish Aggarwal-Backed EV Stock Unlocks Up to Rs 7,240 Crore in PLI Incentives Through CY2031; Cell Capacity to Reach 6 GWh This Quarter

Ola Electric Mobility has secured a revised timeline under the Advanced Chemistry Cell Production Linked Incentive Scheme from the Ministry of Heavy Industries for its wholly owned subsidiary, Ola Cell Technologies Private Limited. The revised timeline provides Ola Electric with a full five-year PLI incentive window through CY2031 for its 20 GWh allocation and unlocks cumulative incentives of up to Rs 7,240 crore. The incentives are scheduled to be disbursed quarterly beginning next quarter.

Cell Manufacturing Capacity to Reach 6 GWh

Ola Electric currently has 2.5 GWh of installed cell manufacturing capacity, while another 3.5 GWh is under installation. The company expects to reach 6 GWh of installed capacity by the end of the current quarter, ahead of the revised December 2026 timeline for the initial milestone. According to the company, the revised decision effectively extends the original timelines by two years.

The revised PLI framework covers Ola Electric's 20 GWh allocation and provides a recurring incentive stream as the company scales its cell manufacturing operations. The company said the development accelerates its gigafactory towards the 20 GWh allocation and supports its broader energy roadmap.

Ola Electric Building Multi-Chemistry Cell Platform

Ola Electric is developing a multi-chemistry cell platform covering NMC and LFP technologies. The platform is being supported by indigenous research and development, greater localisation of battery materials, improvements in manufacturing yield and closed-loop material recovery.

The company said lithium cells are becoming an important technology across electric mobility, energy storage, drones, robotics and next-generation industrial systems. Ola Electric is developing its domestic cell manufacturing capabilities as part of its broader energy and technology roadmap.
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Management Commentary

Bhavish Aggarwal, Chairman and Managing Director of Ola Electric, said the revised timeline changes the economics of the company's cell business by converting the earlier milestone overhang into a five-year quarterly PLI opportunity of up to Rs 7,240 crore. He also stated that the company had not factored the incentives into its business projections after exceeding the original timelines and that the revised framework allows the company to access the incentive potential with disbursements beginning as early as next quarter.

The company is also set to unveil its broader energy product roadmap at its annual Sankalp event, including Shakti, Mahashakti and the next phase of its energy platform.

Ola Electric Share Price Performance

On Wednesday, Indian equity benchmark indices traded lower, with the benchmark Nifty 50 index falling around 0.27 per cent, to 24,404.70. Amid the market movement, the Nifty Auto index opened at 29,476.25, touched an Intraday high of 29,603.40 and a low of 29,395.70, and trading at 29,406.10, down 0.18 per cent. Against this backdrop, Ola Electric share price was trading at Rs 39.52, down 0.35 per cent, as the company announced that the revised ACC PLI timeline has secured a five-year incentive window through CY2031 and unlocked up to Rs 7,240 crore in cumulative PLI incentives.

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Disclaimer: The article is for informational purposes only and not investment advice.