Olectra Greentech Shares Plunge 14% After Maharashtra Cancels ₹10,000 Crore E-Bus Tender
Cancellation over missed delivery deadlines raises concerns about project execution and future state transport collaborations
Tender Termination Triggers Stock Slide
Olectra Greentech Ltd shares tumbled 14% to an intraday low of ₹1,160 on May 27, following the Maharashtra government’s cancellation of a massive ₹10,000-crore electric bus contract.
- Transport Minister Pratap Sarnaik, in a post on social platform X, announced the move, citing non-delivery of buses by the stipulated deadline of May 22.
- The company was expected to supply 1,000 buses by now, yet none were delivered, prompting a decision to revoke the larger 5,150-bus tender.
Background of the Deal
The contract, awarded in July 2023, involved a consortium between Olectra and Evey Trans Pvt Ltd, spanning a 12-year term.
- Under the agreement, Evey Trans would procure electric buses from Olectra and supply them to Maharashtra State Road Transport Corporation (MSRTC) over a 24-month period.
- Olectra was responsible for maintaining the fleet, positioning the project as a long-term revenue stream.
Delays Despite Revised Deadlines
Minister Sarnaik’s comments followed a review meeting at MSRTC headquarters, where officials noted no progress from the consortium—even after a revised delivery timeline had been granted.
- Although Sarnaik did not explicitly name Olectra, his reference to the tender cancellation directly implicates the firm.
- The public rebuke has intensified investor anxiety over Olectra’s ability to manage large-scale public sector contracts.
Market Reaction and Financial Snapshot
Despite a 13% gain over the past month, Olectra shares are now down 9.2% in 2025. At 9:30 am, the stock was trading at ₹1,266, down 6% from the previous close.
- The decline comes shortly after Olectra reported strong March quarter results, with revenue up 58% year-on-year and net profit doubling.
- EBITDA surged 70%, and margins improved by 100 basis points, underlining robust fundamentals despite execution challenges.
Awaiting Company Response
As of now, Olectra Greentech has not issued any official statement regarding the contract termination.
- The company is scheduled to hold an analyst call on Wednesday, May 28 at 4:30 PM, where further clarity may emerge.
- Market participants will closely watch the company’s response and plans to regain execution credibility, especially as state transport agencies may now re-evaluate ongoing and future collaborations.