The shares of Ola Electric Mobility jumped nearly 10 percent to hit a five-month high of Rs 55.75 on August 28. The stock has now gained nearly 15 percent in two consecutive sessions after the firm said it has secured PLI certification for its Gen 3 scooter portfolio.

The shares of the Bhavish Aggarwal-led company have now recovered nearly 41 percent from its 52-week low of Rs 39.6 per share in just over a month.

In an exchange filing released on August 26, Ola Electric said, "Ola Electric, India’s largest pure-play EV company, today announced that it has received Certification for Compliance with the eligibility assessment requirements under the Production Linked Incentive (PLI) Scheme for automobile and auto components sector, for its Gen 3 scooter portfolio. This certification was granted by the Automotive Research Association of India (ARAI) under the aegis of the Ministry of Heavy Industries, Government of India to all of the seven Ola S1 Gen 3 scooters."

The EV-bike maker said its Gen 2 and Gen 3 scooter portfolio are now PLI-certified. Its Gen 3 portfolio, which comprises S1 Pro 3 kWh, S1 Pro 4 kWh, S1 Pro+ 4 kWh, S1 X 2 kWh, S1 X 3 kWh, S1 X 4 kWh and S1 X+ 4 kWh, comprises majority of its current sales. As a result, this certification is set to significantly enhance its profitability from Q2FY26 onwards, the company said.

The PLI certification makes Ola Electric eligible for incentives ranging from 13% to 18% of the determined sales value (DSV) until 2028, it added.

The shares of the company had surged nearly 5 percent on August 26 after the announcement. The stock has now extended massive gains. It is currently the top gainer on the Nifty Midcap 100 index. The stock is however down around 58 percent from its 52-week high of Rs 132.70 apiece, which it had hit in August last year.

Helios Mutual Fund recently added Ola Electric to its portfolio due to its potential in the EV two-wheeler space, the fund house's CEO Dinshaw Irani told The Economic Times.

Speaking to the newspaper, Irani compared Ola to Eternal (Zomato), and how Helios' early bet in the food delivery giant played out. Helios had bought Zomato shares for around Rs 40 apiece. The stock is currently trading at around Rs 320 apiece.

Speaking about the PLI certification, Ola Electric's spokesperson said, "Securing PLI certification for our Gen 3 scooters, which form the bulk of our sales, is a critical step towards profitability. This will directly strengthen our cost structure and margins, enabling us to deliver sustainable growth. With our auto business targeted to turn EBITDA positive, the certification acts as a strong catalyst to achieve that goal while ensuring our customers continue to get the best-in-class EVs at highly competitive prices."