Shares of JBM Auto Ltd. and Olectra Greentech Ltd. witnessed sharp gains on Wednesday, June 3, following the Union Cabinet's approval of a comprehensive infrastructure and environmental initiative. According to reports from CNBC TV18, JBM Auto shares ended 3.7% higher at ₹671.4, while Olectra Greentech's shares closed 3.6% higher at ₹1,331 after the cabinet announcement. The positive market response reflects investor confidence in the potential business opportunities from the government's environmental modernization plans. As per latest market data, JBM Auto shares were trading nearly 6.25% higher at ₹711.05 on the NSE, while Olectra Greentech shares jumped up to 3.87% to touch a high of ₹1,372.40 on the NSE. However, the latest trading session on June 4 showed even stronger momentum, with JBM Auto trading 6.2% higher at ₹709.55 and Olectra Greentech up 4.59% at ₹1,380.25 per share, significantly outperforming the BSE Sensex which was down 0.25% at 74,159.58.
Union Minister Ashwini Vaishnaw announced the ₹9,585 crore outlay for phasing out old trucks and buses in Delhi-NCR during a Cabinet briefing on Wednesday. The initiative has been expanded to include approximately 2.07 lakh vehicles registered in Delhi and NCR states such as Haryana, Rajasthan, and Uttar Pradesh. The scheme seeks to incentivise owners of trucks and buses registered in the Delhi-NCR that comply with BS-IV or earlier emission norms to replace them with BS-VI or stricter emission-compliant vehicles or electric vehicles. Under the scheme, the centre will provide a 5% interest subvention on loans for five years, monthly fuel vouchers worth up to ₹4,800 depending on vehicle category, and lump-sum benefits for EV purchases or certificate of deposit trading. The Centre will contribute ₹5,041 crore, with participating states — Delhi, Uttar Pradesh, Haryana, and Rajasthan — providing approximately ₹1,600 crore in tax concessions. The policy places a strong emphasis on electrification, with Delhi requiring all light goods vehicles purchased under the scheme to be electric, while buses procured in the capital will be restricted to either electric or BS-VI CNG variants.
JBM Auto received an additional boost after the company reported a 49% share of electric bus registrations in May 2026 — the highest in the industry — with 157 units registered during the month, according to Vahan portal data. The milestone is further reinforced by the recent integration of Telangana's registration data into the Vahan portal from May 2026, providing a more complete picture of national electric bus adoption. Nishant Arya, Vice Chairman and Managing Director, JBM Auto, stated that "Our growth reflects a clear focus on decarbonising public transport while aligning with global benchmarks in sustainable mobility. We are building solutions that combine innovation, efficiency, and user-centric design — aimed at making everyday mobility smarter, safer, and more accessible." JBM Auto operates the world's largest dedicated integrated electric bus manufacturing facility outside China, with an annual capacity of 20,000 buses, based in the National Capital Region. Its electric fleet has cumulatively clocked over 400 million e-kilometres, served more than one billion passengers, and helped avoid over one billion kilograms of CO2 emissions to date.
Olectra Greentech's management expressed optimism about the replacement programme's impact, stating that the replacement programme is likely to create a substantial demand boost for electric buses, with a significant share of vehicle replacements expected to shift directly to EVs. The company noted that around 17,000-18,000 electric buses are currently operational in the country and said the industry has sufficient capacity to meet higher demand. Currently, Olectra currently has an annual production capacity of 5,000 electric buses and an order book of about 10,000 vehicles scheduled for delivery over the next 24 months. The company added that it can double its manufacturing capacity to 10,000 units within six months if demand accelerates, while its average receivables cycle remains in the range of three to six months. The policy is seen as a major positive for electric bus manufacturers, particularly JBM Auto and Olectra Greentech, which are among the leading players in India's electric public transport market.
JBM Auto demonstrated robust financial performance in Q4 FY26, with consolidated net profit jumping 11.91% to ₹74.24 crore and revenue from operations increasing 12.55% to ₹1,852.27 crore compared to Q4 FY25. The company's strong financial results reflect its successful execution in the electric mobility sector and broader automotive manufacturing operations. JBM Auto manufactures and sells sheet metal components, tools, dies & molds and buses including sale of spare parts, accessories & maintenance contract of Buses, positioning it as a diversified player in the automotive ecosystem. Currently, JBM Auto commands a market capitalisation of ₹15,827 crore and is trading below its 52-week high of ₹790. From a technical perspective, the stock continues to display bullish momentum with its 14-day Relative Strength Index (RSI) at 61.2, indicating healthy strength while remaining below the overbought zone of 70. Additionally, the stock is trading above all 8 of its key Simple Moving Averages (SMAs), signalling a strong uptrend and sustained buying interest among investors.
