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Olectra Greentech is under pressure as Maharashtra orders cancellation of its Rs.10,000 crore electric bus contract. The company failed to deliver 1,000 buses by May 22. Despite strong Q4 results, the stock is down 9.2% year-to-date.
Shares of electric mobility player Olectra Greentech Ltd. are likely to remain in focus after Maharashtra’s Transport Minister directed officials to cancel a large electric bus tender. The Rs.10,000 crore deal involved the supply and maintenance of 5,150 e-buses over a 12-year contract period, but the company failed to meet revised delivery schedules.
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Maharashtra Transport Minister has ordered cancellation of the 5,150 e-bus order.
The revised target was to deliver 1,000 buses by May 22, but none were delivered.
The Rs.10,000 crore contract was awarded in July 2023 to a consortium led by Olectra Greentech.
Olectra Greentech share price had surged 20% after the announcement in July but is now down 40% from its peak.
The company posted strong Q4 earnings, with 58% revenue growth and doubling of net profit.
An analyst call is scheduled for May 28 to address earnings and ongoing concerns.
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In July 2023, the Maharashtra State Road Transport Corporation (MSRTC) issued a Letter of Intent (LoI) to a consortium of Olectra Greentech and Evey Trans Pvt. Ltd. to lease 5,150 electric buses. The buses were to be supplied within 24 months, with full maintenance handled by Olectra for the next 12 years. However, as of the revised May 22, 2025 deadline, no buses had been delivered, prompting government action.
Despite recent setbacks, Olectra Greentech delivered strong financials for the January–March 2025 quarter. Its revenue grew by 58% year-on-year, net profit doubled, and EBITDA rose by 70%. Margins also improved by 100 basis points. An earnings call is scheduled for May 28 at 4:30 PM to address these numbers and possibly the status of the contract.
Promoter Megha Engineering and Infrastructure Ltd. holds a 50% stake in the company. Around 5.2 lakh small shareholders account for 36.05% of shareholding. Despite a 13% rise in the last month, Olectra Greentech share price is down 9.2% in 2025.
Category | Details |
Total Order Value | Rs.10,000 crore |
Number of Buses | 5,150 |
Delivery Timeline | July 2023 to July 2025 |
Revised Deadline for 1,000 | May 22, 2025 |
Buses Delivered (as of May 22) | 0 |
Contract Duration | 12 years (including maintenance) |
As the situation unfolds, investors will closely watch the company’s upcoming analyst call and any formal statement regarding the tender. The recent order cancellation adds uncertainty, and the Olectra Greentech share price may experience short-term volatility depending on the company’s response and future course of action.
Olectra Greentech now faces the challenge of restoring investor confidence after missing key delivery milestones in a landmark e-bus project. While the company’s financials remain robust, the cancellation of the Rs.10,000 crore order may weigh heavily on the Olectra Greentech share price until further clarity emerges.
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