Olectra Greentech shares rallied almost 5% to touch an intraday high of ₹1,061.50 on Monday, February 23, following the announcement of a significant contract win. According to the latest exchange filing, the company's associate, Evey Trans Private Limited (EVEY), received two Letters of Award from Telangana State Road Transport Corporation (TGSRTC) for the supply, operation and maintenance of 1,085 electric buses. This recovery comes after the stock had been under pressure over the last four months, losing a cumulative 30% and trading 51% lower than its record high of ₹2,221 achieved in February 2024. As per Upstox, the stock has gained more than 5% in the last month despite a 35% decline in the last six months.
The order comprises 1,025 12-metre non-AC buses and 60 12-metre AC buses for intra-city operations. As per the agreement, Evey Trans will procure these buses from Olectra and undertake maintenance during the contract period. The contract operates under a Gross Cost Contract (GCC) or OPEX model for a 12-year period, with buses to be delivered over 20 months. The value of the supply for 1,085 buses is estimated at approximately ₹1,800 crore for Olectra. The transaction between Olectra and EVEY falls under related party transactions and will be conducted on an arm's length basis. Upstox reports that maintenance of these buses will also be undertaken by Olectra during the contract period.
The company continues to maintain a robust order book, reflecting sustained demand for its electric vehicle solutions. According to recent reports, Olectra's insulator division has secured orders worth over ₹300 crores, demonstrating the company's diversified revenue streams beyond its core electric vehicle business. The company is also preparing to participate in Convergence Energy Services Limited's (CESL) tender for over 3,000 buses, representing a significant opportunity to expand its electric vehicle portfolio. Since starting operations, Olectra has demonstrated consistent execution capabilities with an impressive deployment record of over 3,600 buses and 116 tippers, showcasing its operational expertise in the electric commercial vehicle segment.
The company reported its December quarter performance earlier this month, showing mixed results amid the contract announcement. According to the latest filing, consolidated net profit remained flat at ₹47 crore compared to the same period last year, impacted by a 31% year-on-year increase in operating expenses to ₹570 crore. However, revenue from operations stood at ₹664 crore, higher than ₹515 crore in the year-ago quarter. On the operating front, EBITDA came in at ₹93 crore, up from ₹79 crore, with margins expanding marginally by 100 basis points year-on-year to 14%.
As of the latest trading session, shares were trading at ₹1,041.9 apiece on the National Stock Exchange, gaining 2.7% according to Upstox. The positive market response reflects investor confidence in the company's ability to execute this substantial electric vehicle order. However, the stock has faced challenges with a negative return of 11% year-on-year and an additional 35% decline in the last six months. The stock had touched its 52-week high of ₹1,714.20 on September 23, 2025, while its one-year low of ₹965.1 was hit on January 27, 2026. The company's market capitalisation stands at ₹8,559.38 crore.
