Ola share price jumped 3% today; here's why | What Bhavish Aggarwal says

Shares of Ola Electric Mobility Ltd gained 3 per cent in Wednesday's trade after the Ministry of Heavy Industries (MHI), Government of India, approved revised timelines under the ACC Production Linked Incentive Scheme for Ola Cell Technologies Private Limited (OCT), its wholly owned subsidiary.

Ola said the MHI revision is much more than a timeline extension.

"The approval secures a full five-year PLI window through CY2031 for Ola Electric's 20 GWh allocation and unlocks up to Rs 7,240 crore in cumulative PLI incentives. Disbursements will be made quarterly, beginning next quarter, creating a recurring incentive stream as Ola Electric scales its cell business," it explained.

Ola share price targets
Ola shares rose 2.92 per cent to hit a high of Rs 40.80 on BSE. The scrip has six 'Sell' calls, two 'Hold' calls and nil 'Buy' call, with the Bloomberg 12-month consensus target at Rs 29.88 implied 24.7 per cent potential downside.
On August 8, HSBC suggested 'Reduce' on the stock with a target of Rs 24. KOtak's target on the stock stands at Rs 20, Ambit Capital's target at Rs 29, Goldman Sachs's at Rs 40, Citi at Rs 26, Emkay Global's at Rs 30 and Investec's at Rs 35.

Ola Electric currently has 2.5 GWh of installed cell-manufacturing capacity, with a further 3.5 GWh under installation. The company said it will reach 6 GWh by the end of the ongoing quarter, achieving the initial installed-capacity milestone well ahead of the revised December 2026 timeline.

The MHI decision has effectively extended the original timelines by two years.

Ola said lithium cells are becoming a foundational technology across electric mobility, energy storage, drones, robotics and next-generation industrial systems. Building these capabilities in India will strengthen the country's energy security and technology independence while creating a globally competitive domestic battery ecosystem.

"Ola Electric is building a multi-chemistry cell platform spanning NMC and LFP technologies, supported by indigenous R&D, increased localisation of battery materials, improved manufacturing yield, and closed-loop material recovery," it said.

What Bhavish Aggarwal says

Bhavish Aggarwal, Chairman and Managing Director, Ola Electric, said: "The revised timeline is more than an extension. It transforms the economics of our cell
business by converting an earlier milestone overhang into a five-year, quarterly PLI opportunity of up to Rs 7,240 crore. We hadn't factored any incentives into our business projections after overshooting the original timelines."

He said Ola is now well ahead of the government's revised schedule, and enables us to access the full potential of Rs 7,240 crore and receive disbursement as soon as next quarter."

At the company's annual Sankalp event this coming Independence Day, it will unveil its broader energy product roadmap-including Shakti, Mahashakti, and the next phase of its energy platform.

"This year, the company will not hold an on-ground Sankalp event. Instead, the
announcements will be unveiled directly across Ola Electric’s official channels on
Independence Day," Ola said on Tuesday.