Olectra Greentech Limited is a pioneering enterprise in India’s electric mobility sector, specializes in the manufacturing and deployment of electric buses and tippers. The company has played a significant role in transforming public transportation by offering sustainable and technologically advanced mobility solutions. Olectra’s commitment to innovation is reflected in its cutting-edge developments, including the introduction of the Blade Battery technology, which enhances vehicle range, safety, and efficiency.
In this article we will go through the Q3FY25 earnings conference call and try to analyze the management commentary.
Key highlights of the company
- The management is happy to share that that the overall Results of Q3 and nine months remain strong with growth in company’s consolidated revenue and profitability.
- till 31st December company has accumulatively delivered about 2,448 electric buses and 51 electric tippers.
- Olectra buses have successfully covered more than 30 crores kilometers across the length and breadth of the country.
- Strong demand continues with the company’s net order book of electric business, which stands at 10,224 numbers after delivering 282 buses in Q3 FY’25.
- The company unveiled its latest technology advancement, the Blade Battery technology at the Bharat Mobility Global Expo 2025. The Blade Battery promises not only longer ranges, but also faster charging time, ultimately, enhancing performance, safety, and reliability.
- The company is scaling up its production facilities to support its ambitious growth targets, including an upcoming automated manufacturing line.
Financial Performance
| Financial Metric | Q3 FY’25 | YoY Growth (%) | 9M FY’25 | YoY Growth (%) |
| Revenue (INR Crore) | 515.37 | 51% | 1,352.98 | 56% |
| EBITDA (INR Crore) | 81.77 | 46% | 217.97 | 53% |
| PBT (INR Crore) | 61.95 | 83% | 158.63 | 85% |
| PAT (INR Crore) | 46.62 | 72% | 118.52 | 86% |
Strategic Investments & Expansion Plans:
- The company is actively expanding its production capabilities, with an ongoing investment of INR 750 crore, funded through a combination of internal accruals and INR 500 crore in planned debt financing.
- The company aims to increase its production capacity to 5,000 electric buses annually, with further expansion plans to reach 10,000 units in the near future.
- To support this growth, Olectra is in advanced discussions with top robotic automation providers to enhance efficiency in manufacturing.
Question and Answer Session Highlights
What target are we seeing in 2025 or 2026 for the top line? And for the CAPEX is done, what revenue are we expecting from that and what other revenue are we expecting?
I think to answer your first question, for ’24-25, we are expecting the target to be around 1,200 number, and for ’25-26, we have already indicated earlier in the previous call where we are targeting a conservative number of 2,500 numbers. We are actually ramping up the installed capacity to about 5,000 numbers and by Q4 Earnings Call, we will have clear clarity on what could be the guidance for the next financial year. As of now, we are indicating about 2,500
numbers.
As far as CAPEX is concerned, see, basically we have a large order book of about 10,200 plus numbers. To meet these order execution, we have actually put up a new plant where the construction on Phase-II is progressing at an advanced stage and initially we have a capacity built about 200 buses per month where we are targeting to increase to about 400 buses per month. So, the CAPEX we have actually planned to take a debt of 500 crores to meet the revenues. I hope I have clarified
In terms of the order book, you mentioned that the order book is of 10,200-odd buses. So, just to understand the value of these buses, I have jotted a few numbers. So, basically, from Mumbai BEST buses, we have some 5,000 buses order and which are basically 12-meter A/C buses which should be around 1.75 crores in cost, then we have MSRTC order which is 2,800 are electric coach buses and we have 9 meter MSRTC which would be around 2,350 number buses. So, I have just done some calculations wherein I arrived at number in terms of value to be around 20,000 crores. So, am I right in projecting those numbers?
I need to clarify. See, basically these numbers, the average sales realization if you look at the sales mix currently, it’s about 1.5 crores if you look at 9 meters, 12 meters and coach all put together. So, when we talk about these kind of large numbers and the pricing definitely will be variable, it all depends on factors like what could be the cost and these orders are going to be executed in the next 24-to-30 months. So, in that scenario, based on the cost factor, both we and our customers will mutually agree for a price. As of now, the average price is about 1.5. You can take 1.5 as a ballpark and then have the number.
what is the current status of the factory like are the automatic robots in place so that the factory gets totally autonomous?
See, basically we have placed the orders, and we are expecting the machinery in about next about
six months’ time. So, Phase-1 without robotics and Phase-2 is with robotics. So, it may take
about six months time to get automation in place.
Thank you very much for this opportunity. So, just wanted to reclarify, this year we are targeting 1,200 buses, right, in terms of delivery and next year 2,500 buses conservatively, right?
Correct
How should we one look at margins? I mean, last two quarters, our margin has been quite stable at 15, 15.5%. So, in the near term, we expect this margin to continue?
In the near term, we expect the same margins, but over a period of time, I think I have clarified in the past certain types of numbers. In terms of value, we see a significant growth in value. But over a period of time, the margins could be around 12%.
what is the total CAPEX amount you mentioned?
The total CAPEX is we are estimating around 750 crores including the land cost.Out of this 750 crores, we are looking 500 crores through debt and remaining 250 crores through internal accruals.
there’s some kind of a supply issue on the battery side of it from China and some stabilization on the JC manufacturing setup. Can you just help us with because this battery thing some other companies have also come and talked of. So, are we having any such issues or probably these issues are past and we are able to ramp up now?
As far as we are concerned, we don’t have battery issues. We are working, as I think we have indicated in the past we have a strong R&D team, we keep working on introducing new models and localization is a continuous process.
in the last quarter, I think we had sold 315 buses, and in this quarter we sold about 282 businesses. So, the current run rate seems to be around 300. So, we are targeting 1,200 for the current year.
correct
Or do we expect to be better off in the March quarter because of the government budget, etc.,?
Nothing, actually, there’s no as such impact from the budget side. So, basically, we are in the continuous process of streamlining the production and we are ramping up the operations of the new set up. And in Q3, we were focused on delivering higher value CX2 model and this allowed us to increase our top line revenue even with slightly lower production volumes. Meanwhile, we have invested time in optimizing our production processes and scaling up our supply chain to ensure smoother execution for execution of larger orders of different models in the near future. So, we expect both the production volume and the revenue to grow substantially, ensuring sustained value for our stakeholders.