This article first appeared on GuruFocus .
Release Date: November 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Olectra Greentech Ltd ( BOM:532439 ) reported its highest ever quarterly deliveries of 375 electric vehicles, including 25 electric tippers, in Q2 2026.
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The company's revenue increased by 25% in Q2, driven by higher deliveries and strong demand.
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Olectra Greentech Ltd ( BOM:532439 ) achieved the highest profit in a quarter with an EBITDA of 93.01 crore, reflecting operational efficiency and scale.
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The company has a robust order book with over 9,000 orders in the pipeline, indicating strong future demand.
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Olectra Greentech Ltd ( BOM:532439 ) has received a homologization certificate for blade battery technology, which is expected to enhance efficiency and is set to be productionized by Q4 2026.
Negative Points
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There is margin compression due to a product mix shift as volumes ramp up, with historical margins as a percentage not being sustained.
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The company faces challenges with depot readiness and infrastructure availability, which could delay bus deliveries.
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Olectra Greentech Ltd ( BOM:532439 ) is dependent on imports for battery cells and some motor components, which could be affected by supply chain disruptions.
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The company has not received any large orders in the past 1.5 years, raising concerns about future order inflow.
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There are geopolitical and supply chain challenges, such as permanent magnet restrictions, that could impact production and delivery schedules.
Q & A Highlights
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Q: What is Olectra's long-term strategy beyond winning bus orders? Are there any plans for partnerships or new platforms? A: Mr. Mahesh Babu, Managing Director, explained that Olectra is exploring multiple options in the electric bus and truck segments. They have a technology partnership with BYD, which provides a market differentiator. Olectra plans to develop its own intellectual property while leveraging the BYD partnership. They are also focusing on manufacturing innovations to reduce costs and maximize customer benefits. Any new partnerships or products will be announced when mature enough.
Q: How does Olectra plan to maintain margins amid rising costs like battery and raw materials? A: Mr. Sarra, CFO, stated that Olectra is working on production efficiencies and cost optimization. They have mechanisms to negotiate price increases with customers if battery prices rise, aiming to maintain operating margins at 10-12%. They are also diversifying their product base, including electric tippers, to sustain margins in the long term.
Q: What is the status of the revised proposal to the Maharashtra government for electric buses? A: Mr. Mahesh Babu mentioned that the revised proposal from MSRTC involves supplying buses by 2027. The delivery depends on depot readiness and infrastructure availability. Olectra is aligning production with depot readiness and expects to meet the market's absorption capacity over the next two years.
Q: How is Olectra planning to handle the potential increase in orders from the upcoming CSL tender? A: Mr. Mahesh Babu indicated that Olectra will participate in tenders that align with their business goals and financial targets. They are prepared to handle increased orders but will focus on profitable and strategic opportunities rather than aggressively pursuing numbers.
Q: Are there any updates on Olectra's Greenfield plant expansion and supply chain issues? A: The Greenfield plant has partially started operations with a capacity of 2,500 vehicles per shift, expandable to 5,000. Olectra is monitoring supply chain challenges and is confident in handling them to meet delivery targets. They are maintaining their guidance despite these challenges.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
