Shares of Olectra Greentech tumbled nearly 14% in pre-open trade today after Maharashtra scrapped its massive electric bus order, citing delivery delays. The state transport minister Pratap Sarnaik wrote on social media platform X that the company concerned has been inactive in supplying 5,150 leased electric buses.
Shares of the company ended 4.2% higher on Monday at Rs 1,348.10 on the National Stock Exchange. The stock has lost over 25% in the last one year, but has gained nearly 12% in the last one month.
Although Sarnaik directed “to cancel the tender agreement signed by ST Corporation with this company”, he did not give the name of the company. In July, 2023, Olectra informed exchanges that a consortium involving the company and Evey Trans Pvt. Ltd. received a letter of intent to supply 5,150 electric buses to Maharashtra State Road Transport Corporation. The stock jumped 18% on the day it disclosed the information.
The total order value of these electric buses was almost Rs 10,000 crores for Olectra, it had said in the exchange filing. While the then filing had mentioned that the deadline for the aforementioned order was 24 months (July 2025), Sarnaik’s post said that a revised schedule was given to the “concerned bus supplier organisation to supply 1,000 buses by May 22”. “But it was not possible to supply a single bus to the concerned company till this period. Therefore, there is doubt about the supply of buses by this organisation in the future,” he added.
Olectra has not yet informed about any such development.
While the aforementioned update could have spooked the investors, a robust earnings growth for the March quarter, which was disclosed on Monday, is likely to give some relief. Its consolidated net profit for the last quarter of FY25 jumped over 53% on year, mainly on the back of a 55% jump in its revenue during the period. The board of directors also approved a final dividend of Rs 0.40 per share.
