India’s growing electric bus market has given Olectra Greentech Ltd a large order pipeline, with the company entering FY27 with an order book of around 10,000 electric buses and plans to nearly double annual deliveries.
The company, which has a market capitalisation of about Rs 10,500 crore, is targeting deliveries of around 2,500 buses in FY27 after supplying 1,280 buses in FY26. Management said achieving that goal will depend largely on supply-chain stability, shipping logistics and the availability of raw materials.
FY26 marked record financial performance
Olectra reported consolidated revenue of Rs 2,312 crore in FY26, its first year with revenue above Rs 2,300 crore. Vehicle deliveries rose 32% to 1,280 electric buses from 972 buses in FY25.
According to management, FY26 was the company’s strongest year in terms of revenue, EBITDA and profit after tax.
- Revenue increased 28% year-on-year.
- EBITDA rose 27% to Rs 352 crore.
- Profit before tax climbed 31% to Rs 246 crore.
- Profit after tax grew 29% to Rs 179.5 crore.
Management said the performance came despite supply-chain disruptions, geopolitical tensions, battery-related issues and shortages of raw materials.
Electric bus market continues to expand
Management said India became the world’s third-largest electric bus market in FY26, with industry sales of about 5,423 buses, up nearly 30% from the previous year.
Overall electric vehicle penetration in the segment stood at around 4.7%, while penetration in the more widely used 9-metre and 12-metre bus categories was close to 9%. Management expects adoption to accelerate once penetration reaches 10-15%.
Order book provides multi-year visibility
Management said Olectra’s order book has remained at around 10,000 buses even as deliveries have progressed because of fresh order inflows.
Major customers include MSRTC and BEST, with some deliveries scheduled through September and October 2027. Management said the company’s growth outlook now depends more on execution than on generating additional demand.
Supply chain remains a key risk
Management identified material availability as the biggest challenge facing the company.
Geopolitical developments have affected shipping and disrupted supplies of plastics, resins, polymers, batteries and magnets. According to management, customer demand remains strong and deployment-related issues have largely been resolved.
New platforms under development
The company is developing a new bus platform designed to meet PM E-Drive specifications and plans to launch it in FY27.
Olectra is also working on an electric truck platform targeted for introduction in the latter part of FY27.
Management said the platforms are being designed with features including:
- Megawatt charging capability.
- Battery-swapping support.
- Modular architecture.
- Compatibility with different battery chemistries.
The vehicle control system is being developed to remain battery agnostic, allowing the use of future technologies such as sodium-ion and solid-state batteries.
Capacity expansion plans continue
Olectra said it has built annual manufacturing capacity of about 2,500 units under the first phase of its expansion programme, supported by an investment of Rs 400 crore.
Management plans to invest another Rs 400 crore over the next two years to expand capacity further and support development of proprietary bus and truck platforms.
Production is currently carried out manually, though management said automation may be introduced gradually as output rises.
Industry demand remains supportive
Management pointed to several government initiatives aimed at increasing electric bus deployment, including:
- A tender for around 4,000 buses under the PM e-Sewa scheme.
- About 2,000 buses through state-level tenders.
Management also expects more than 10,000 additional electric bus tenders over the next 12 months.
According to management, state transport undertakings are increasingly recognising the operating cost advantages of electric buses over diesel vehicles, particularly for urban routes. Financing remains a constraint, though discussions are underway between banks and authorities to develop funding structures suited to electric vehicles.
Olectra said it is also engaging with private transport operators and already supplies buses to some private companies.
With a sizeable order backlog, expanded manufacturing capacity and new products under development, the company’s ability to convert demand into deliveries is expected to be the determining factor for its next phase of growth.
TL;DR:
Olectra Greentech entered FY27 with a 10,000-bus order book after posting record FY26 revenue of Rs 2,312 crore and delivering 1,280 buses. The company aims to raise deliveries to 2,500 buses in FY27, though supply-chain disruptions remain a key risk.
AI summary:
- Olectra posted record FY26 revenue of Rs 2,312 crore and PAT of Rs 179.5 crore.
- The company has an order book of around 10,000 electric buses.
- Management aims to deliver about 2,500 buses in FY27.
- Supply-chain disruptions and raw material availability remain major concerns.
- New bus and electric truck platforms are planned for launch in FY27.