Olectra Greentech Limited is one of the main players in India’s electric vehicle (EV) sector, and is at a critical juncture in its journey. With strong technology and good financial performance, the Company is in a good position despite the acute operational challenges it faces and the ambiguity surrounding its contracts.

Strong Financial Performance in Q4 FY25

Olectra Greentech posted a 39% jump in its net profit for Q4 FY25, reaching ₹20.69 crore compared to ₹14.89 crore in the same period last year. Revenues also surged by 55% year-on-year to ₹448.92 crore, powered largely by a 67% growth in electric bus deliveries. A total of 219 electric buses were delivered in Q4 alone, up from 131 in Q4 FY24.

As of now, Olectra has delivered a cumulative 2,718 electric buses and holds confirmed orders for over 10,000 more units across various state transport undertakings, showcasing its rising dominance in India’s green mobility push.

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Technological Leap: Blade Battery Innovation

Olectra, in collaboration with BYD, unveiled a new electric bus platform at the Bharat Mobility Global Expo 2025, featuring its advanced Blade Battery technology. The Blade battery system provides higher energy density and safety along with faster charging.The newly introduced 12-meter chassis platform enables buses to travel up to 500 kilometers on a single charge 30% more efficient than traditional battery setups.

This innovation marks a crucial milestone for Olectra, aligning its product offerings with global standards while ensuring longer range and durability for public transportation systems.

Setbacks: Contract Cancellations Raise Concerns

The company has certainly had successes. However, it is presently going through a storm. The Maharashtra State Road Transport Corporation (MSRTC) reportedly cancelled an order for 5,510 electric buses worth approximately ₹10,000 crore in May 2025 after the company did not start delivering nearly a year after the contract was signed in July 2023. This caused Olectra’s share price to fall almost 13%. Afterwards, the company put out an official clarification saying that it was still in discussions with MSRTC and was committed to adhering to the contract.

BEST Contract at Risk Due to Delivery Delays

Another setback came from the Brihanmumbai Electricity Supply and Transport (BEST) undertaking. In May 2024, BEST issued a showcause notice to Olectra after only 10% of the 2,100 air-conditioned electric buses ordered were delivered.

BEST warned of potential contract termination if delivery schedules were not met. This development added further pressure on Olectra to streamline its supply chain and logistics operations to avoid penalties and

Fresh Orders Reinforce Market Trust

Olectra is able to keep on winning major contracts despite operational issues, which demonstrates a sustained confidence in its ability to deliver. In April 2025, Olectra won a ₹424 crore contract from Himachal Road Transport Corporation (HRTC) to supply, and maintain, 297 electric buses. The contract represents an important piece of Himachal Pradesh’s green mobility strategy.

Earlier, in March 2023, Olectra won a milestone contract from Telangana State Road Transport Corporation (TSRTC) to deliver 550 electric buses, marking one of the largest orders in South India at the time.

Conclusion: A Defining Crossroad for Olectra

Olectra Greentech is currently in a juxtaposition situation, While it has little competition in the Indian EV bus industry, and has an attractive technology and sizable orders, Olectra faces challenges around delivery lead times for its product to follow through on contracts that may only somewhat offer the possibility of a timeframe for delivery. How Olectra is able to work through these structural challenges will determine the breadth of its impact in transforming electric mobility in India. Stakeholders remain cautiously optimistic, hoping that Olectra can balance its delivery obligations with its innovation-led vision.

Insights: Varun Aggarwal

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