Ola Electric Eyes Up To ₹7,240 Cr Battery Cell PLI Incentives After Timeline Revision
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The Ministry of Heavy Industries (MHI) has revised the timelines under the advanced chemistry cell (ACC) PLI scheme for Ola Electric’s battery subsidiary, Ola Cell Technologies Pvt Ltd (OCT).
The revision gives the company a five-year incentive window through CY2031 for its 20 GWh allocation under the scheme, potentially allowing it to claim cumulative incentives of up to ₹7,240 Cr, Ola Electric said in an exchange filing.
The actual payouts will depend on the company meeting the applicable conditions under the PLI scheme.
Ola Electric said the incentives would be disbursed quarterly over the next five years, starting from December quarter of 2026. The government’s decision effectively extends the company’s original timelines by two years.
Ola Electric currently has 2.5 GWh of installed cell-manufacturing capacity, while another 3.5 GWh is under installation. It expects to reach 6 GWh by the end of the September quarter, ahead of the revised December 2026 deadline for the first capacity milestone.
“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 ₹7,240 Cr,” Ola Electric founder and CMD Bhavish Aggarwal said.
He added that the company had not included PLI incentives in its business projections after missing the original timelines.
Ola Electric’s Provision Reversal In Q1
The revised timelines assume significance as Ola Electric recently reversed a ₹57 Cr provision for liquidated damages related to delays in meeting investment milestones under the ACC PLI scheme in Q1 FY27.
OCT had received a notice from the IFCI, which serves as the project management agency for the ACC PLI scheme, in March 2025 over the delays. Ola Electric subsequently provided ₹57 Cr towards the potential liability as of March 31, 2026, besides furnishing an unconditional bank guarantee of ₹125 Cr.
During the June quarter, OCT sought an extension of the milestones and a waiver of the liquidated damages from MHI. Ola Electric said it was confident of receiving approval and subsequently wrote back the entire ₹57 Cr provision.
However, the company’s auditor, in its note for Q1 FY27, highlighted that Ola Electric reversed the ₹57 Cr provision without receiving the government’s approval for an extension or waiver. This helped it reduce its loss in the June quarter.
Ola Electric reported a 22% decline in consolidated net loss to ₹336 Cr in Q1 FY27 from ₹428 Cr a year earlier. The loss narrowed 33% QoQ from ₹500 Cr.
Operating revenue fell 45% YoY to ₹455 Cr, while rising 72% QoQ. Orders nearly doubled QoQ to 44,000 units, with registrations increasing 97% QoQ. Its E2W market share rose to 8.4% from 5.1%.
The company is now gearing up to launch the Gen 2 platform of its residential battery energy storage system (BESS) Shakti with LFP cells on August 15. On the same day, it will also unveil its utility-scale BESS platform Mahashakti.
Shares of Ola Electric were trading 0.43% higher at ₹39.81 apiece on the BSE at 11:20 IST.
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