Olectra Greentech Ltd was incorporated in the year 2000 and is a leading manufacturer of electric buses in the country. It is primarily engaged in the manufacture of electric buses, tippers and composite polymer insulators. The company manufactures 7 meter, 9 meter and 12 meter models of electric buses in the country. Olectra Greentech has a strong and established relationship with State Transport Undertakings across the country having built a strong order book of electric buses.
The company has a well invested plant facility with technological tie up with BYD, which is one of the largest bus manufacturers in the world, making EV buses and trucks and now making commercial vehicles like tippers using the best cell to pack battery technology for its products. In a stock exchange filing, the company has announced the commercial production at its recently started Greenfield state of the art plant in Hyderabad for the production of 2500 vehicles per shift and double capacity in two different shifts.
While for the whole of last year 2024, the company produced 4200 vehicles but it is expecting a production of over 6000 vehicles in the current financial year. The company has also diversified into the production of insulators having clocked a revenue of around Rs 180 crores and is expecting to post good growth in 2026. India’s EV bus segment has been growing at a CAGR of 35% on the back of initiatives taken by the government of India and state governments while Olectra has seen significantly higher CAGR of around 60%.
Olectra Greentech is among the top 2 in the electric bus segment and number one in bus deliveries in the country. The company has recorded a healthy operating margin of around 12-14% in the EV segment for Q2 FY26 with electrical vehicle deliveries at 375 versus 315 as of last year at positive 19% volume growth. Revenue for Q2FY26 stood at Rs 656.62 crores up by 25%, EBITDA at Rs 93.01 crores up by 9%, Profit before Tax at Rs 68.46 crores up by 6% and Profit after tax at Rs 49.43 crores up by 4%.
The company has a technological partnership with BYD China and Olectra will continue to innovate in the manufacturing sector to reduce cost and be a differentiator in the market among competitors. The main challenge for the company is the availability of depots, power availability in the depot and infrastructure availability at the depot. The company delivered about 4000 electric buses last year while Maharashtra has a demand for 5000 buses which it cannot provide and should take at least 2 to 3 years to supply due to the unavailability of the infrastructure at the depot.
Therefore, Olectra is aligning and timing the production and delivering the vehicles with the depot readiness in Maharashtra. The future is extremely bright for Olectra with a 10,900 CESL bus tender as part of the PM e-drive in the pipeline along with the PM e-Seva tender also coming up soon. The Indian market has been very receptive to EV adoption in a strong way and Olectra is at the forefront to participate in the EV expansion in the country. The Olectra Greentech stock is a good buy at the current price of Rs 1240 for long term growth appreciation.
