Olectra Greentech Limited is a pioneer in India’s electric mobility sector, specializing in manufacturing electric buses and tippers. It is also engaged in composite insulator production. A key player in the EV segment, Olectra has delivered over 2,600 electric buses nationwide and is advancing cutting-edge technologies like Blade Battery. The company aims to lead India’s sustainable transport transformation.
In this article we are going to discuss the summary of the management commentary that was delivered on Q4FY25 performance.
Operational and Strategic Highlights:
Performance Overview:
The company demonstrated strong growth in consolidated revenue and profitability for Q4 and full-year FY25.
- Delivered a total of 2,718 electric vehicles, including 2,667 electric buses, as of March 31, 2025.
- Olectra buses have collectively clocked over 40 crore kilometers pan-India.
Industry Positioning:
Despite a challenging year for the industry, Olectra delivered 972 electric buses in FY25, ranking it among the top two OEMs in the country.
- Management reaffirmed their aim to be number 1 in deliveries by FY26.
Order Book:
The company has a strong order book of 10,000+ electric buses as of March 31, 2025.
Demand is not a constraint; the issue is with supply-side challenges such as components and battery procurement.
Technology Advancements:
- Unveiled Blade Battery Technology at Bharat Mobility Global Expo 2025.
- Offers higher energy density, faster charging, and greater safety.
- Currently undergoing homologation, expected to be certified by Q3–Q4 FY26.
Manufacturing Expansion:
Current production capacity: 200 buses/month, expanding to 400 buses in the next 3–4 months.
With robotics implementation, capacity to reach up to 5,000 buses annually, scalable to 10,000.
Robotic welding machinery orders placed with FANUC and KUKA. Robotic production is targeted to begin by end of FY26.
Financial Highlights:
Q4 FY25:
- Revenue: ₹448.92 crore (↑55% YoY)
- EBITDA: ₹58.35 crore (↑36% YoY)
- PBT: ₹29.25 crore (↑45% YoY)
- PAT: ₹20.69 crore (↑39% YoY)
Full Year FY25:
- Revenue: ₹1,801.9 crore (↑56% YoY)
- EBITDA: ₹276.32 crore (↑49% YoY)
- PBT: ₹187.88 crore (↑78% YoY)
- PAT: ₹139.21 crore (↑77% YoY)
Working Capital:
Net working capital days reduced to 60 days, a decline of 54 days, driven by:
- Better receivables collection
- Lower inventory days
| Particulars | Q4 FY24 | Q4 FY25 | YoY Growth (%) | FY24 | FY25 | YoY Growth (%) |
|---|---|---|---|---|---|---|
| Revenue | 289.00 | 448.92 | 55% | 1,153.8 | 1,801.9 | 56% |
| EBITDA | 42.84 | 58.35 | 36% | 185.51 | 276.32 | 49% |
| PBT | 20.11 | 29.25 | 45% | 105.78 | 187.88 | 78% |
| PAT | 14.89 | 20.69 | 39% | 78.65 | 139.21 | 77% |
| Buses Delivered | 131 | 219 | – | 650 | 972 | – |
| Working Capital Days | – | 60 days | ↓ 54 days | – | 60 days | – |
Key Challenges Addressed:
Supply Chain Disruptions:
Industry-wide shortages in chassis components and battery-related parts, primarily from BYD, have constrained production.
- Normalization expected to start Q2 FY26.
Production Guidance:
- FY26 delivery guidance: 2,000 to 2,500 buses
- Acknowledged that prior guidance was optimistic; now issuing more conservative and achievable targets.
Clarification on MSRTC Order Cancellation Rumors:
- No official communication received from MSRTC.
- The company has already delivered 220 buses to MSRTC.
- The delivery deadline extends till May 2026.
Partnerships & R&D:
BYD Collaboration:
- Partnership extended till December 2030.
- Blade battery platform co-developed and showcased with BYD.
- Olectra continues to source battery cells and powertrains from BYD, while other components are increasingly localized.
Product Pipeline:
- Working on electric tippers, having delivered 51 units already.
- R&D focused on electric trucks and GFRP rebars (fiber-reinforced polymer rods) for the construction sector.
Future Outlook & Commitments:
Olectra aims to be a leading contributor to India’s EV adoption.
Will focus on:
- Expanding manufacturing capacity
- Leveraging advanced technology like Blade Batteries
- Deepening localization to reduce import dependencies
Reiterated commitment to shareholder value creation, operational excellence, and financial discipline.
Question and Answer Session Highlights
Q1: Why is there a mismatch between buses delivered (219) and Vahan registrations (181)?
A: Olectra delivers buses at the factory gate (ex-works). Registration is the responsibility of the customer and usually takes 1–1.5 months.
Q2: Is the FY26 delivery guidance of 2,500 buses being revised?
A: Yes, considering industry challenges, the revised guidance is 2,000–2,500 buses for FY26.
Q3: Any update or clarification on media reports regarding MSRTC order cancellation?
A: No official communication received. The company has already clarified this to the stock exchanges.
Q4: Update on factory automation – have robot orders been placed?
A: Yes, orders have been placed with FANUC and KUKA. Robotic welding will commence by end of FY26.
Q5: How will Olectra fulfill large backlogs (e.g., BEST, MSRTC) with current capacity?
A: Automation and shift expansion will ramp up capacity. From Q4 FY26, production will accelerate to meet commitments.
Q6: If MSRTC issues a cancellation notice, how will the company respond?
A: The company has a contract until May 2026 and will act as per agreement if such a notice is received. Optimistic no such event will occur.
Q7: Are there battery supply chain issues affecting production?
A: Yes, along with chassis components. Normalization expected from Q2 FY26.
Q8: What were the new orders secured in FY25?
A: Orders include:
- 297 buses from HRTC (outright sale)
- 15 buses from Microsoft
- PM e-bus Sewa pipeline of ~10,900 buses
Q9: When will capacity increase from 5,000 to 10,000 buses?
A: Infrastructure is ready; capacity can be expanded to 10,000 within a year based on demand.
Q10: Is the entire industry facing supply-side challenges?
A: Yes. FY25 had only 2,258 e-bus registrations industry-wide. All OEMs are capacity-constrained.
Q11: Has financing improved for EV bus projects?
A: Yes. Recent major projects (~₹20,000 Cr) have achieved financial closure with institutions.
Q12: What happens if MSRTC cancels the order? Can competitors fulfill it?
A: Unlikely, as no OEM currently has spare capacity to fulfill such large orders quickly.
Q13: Is there any dispute between Olectra and BYD?
A: No. Contract extended till December 2030. Relationship is strong; BYD supported the Blade Battery tech showcase.
Q14: What is the timeline for Blade Battery certification?
A: Homologation expected by Q3–Q4 FY26.
Q15: Is the company exploring other battery suppliers (e.g., LG, Samsung)?
A: Currently sourcing cells and powertrains from BYD. Other components are localized.
Q16: What is the status of the GFRP Rebar business?
A: Still in early stages, undergoing certifications. Updates expected during FY26.
Q17: Status of employee benefits like NPS, gratuity?
A: Currently unfunded. Provisions made based on actuarial valuation. NPS may be considered as employee base grows.
Q18: Any plan to increase dividend payout in FY26?
A: Dividend retained at ₹0.40 due to working capital needs. A higher payout will be considered based on performance.
Q19: Can the AGM be held physically at the factory?
A: Virtual AGM is more feasible given 5.5 lakh+ shareholders, but hybrid meetings may be considered if SEBI permits.
Q20: Why was there a dip in Q4 vs. Q3 performance?
A: Continued supply constraints. Despite this, YoY growth has been strong with a CAGR of 45% in revenue.
Q21: Clarification on electric trucks vs. tippers?
A: 51 electric tippers have been deployed. R&D is working on more truck variants.
Q22: What is the current monthly production capacity?
A: ~200 buses/month. Plans to double this via two shifts and robotics.
Q23: Will Q1 FY26 deliveries be lower due to constraints?
A: Yes, Q1 FY26 will be similar to Q4 FY25. Production ramp-up from Q2 onward.
Q24: Does the MSRTC contract have interim delivery targets or penalties?
A: Yes, with an overall deadline of May 2026. Both Olectra and STUs have shared responsibilities like depot readiness.
Q25: Is Olectra exploring hydrogen buses?
A: No. Hydrogen tech is still expensive and nascent. Focus remains on electric buses and tippers.