Shares of Olectra Greentech, an electric bus manufacturer, surged 6% in intraday trade on Wednesday, October 23, reaching ₹1,716 apiece after the company reported a healthy set of numbers for the September quarter.
On Tuesday, post-market hours, the company released its Q2FY25 results, posting a 156.50% increase in consolidated net profit to ₹47.65 crore, compared to ₹18.57 crore in the same period last year. In the June quarter, net profit was ₹24 crore.
Revenue from operations saw a 71% rise, reaching ₹524 crore compared to ₹307 crore in Q2 FY24. The e-vehicle division, which contributes 90% of the company’s revenue, jumped 75.21% YoY to ₹482 crore, while the insulator division generated ₹41 crore.
Shares of Olectra Greentech have also bounced back in August, gaining 6% after six consecutive months of decline. Despite the recent rise, the stock remains 23% below its February peak of ₹2,221.95.
Recent updates
The company, on October 8, bagged a contract to supply 327 electric buses to the Himachal Road Transport Corporation (HRTC). As state governments increasingly adopt green vehicles for public transportation, Olectra Greentech has been actively participating in bidding processes initiated by various state transport undertakings (STUs).
As of March 31, 2024, the company’s order book for electric buses stood at 10,969 units, with more tenders anticipated to boost this number. According to the company’s FY24 annual report, approximately 1,695 of Olectra’s e-buses were in operation on Indian roads by the end of the fiscal year, collectively covering over 10 million kilometers each month.
India’s electric bus market is experiencing rapid growth, generating USD 282.7 million in revenue in 2023. It is forecasted to grow at a compound annual growth rate (CAGR) of 18.2% from 2024 to 2030, potentially reaching USD 905.4 million by the end of the decade, according to P&S Market Research.
State Transport Undertakings (STUs) are expected to require about 370,000 buses by 2030, which calls for significant upgrades in infrastructure. Part of this transformation will involve replacing approximately 35,000 outdated diesel buses with cleaner options.
As e-bus production and deployment within fleets continue to surge, Olectra is well-positioned to benefit from this growth trajectory.
In September, the Union Cabinet approved the “PM-eBus Sewa-Payment Security Mechanism (PSM) scheme.” The scheme, with a total outlay of ₹3,435.33 crore, is aimed at supporting the procurement and operation of electric buses (e-buses) by Public Transport Authorities (PTAs).
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