Olectra share falls 6% after Rs 10,000 crore order cancelled

Olectra Greentech just went from high-voltage to short circuit. The stock dropped around 6.1 per cent on Tuesday (May 27, 2025) after reports emerged that a Rs 10,000 electric bus order from the Maharashtra government had been scrapped.

Q4 FY25 performance snapshot

What went wrong?

A Rs 10,000 crore order from the Maharashtra government was called off because Olectra reportedly missed deadlines for delivering over 5,000 buses. That's not a small hiccup, it's a serious blow to its order book and reputation.

Then came the Q4 results, and they didn't help either. Profit for Q4 FY25 plunged nearly 30 per cent year-on-year (YoY) to just Rs 20.7 crore while EBITDA fell 0.7 per cent.

So, in one stroke, a cancelled deal and weaker earnings took the shine off what was once seen as a high-growth EV bet.

What Olectra does

Olectra Greentech makes electric buses and is a poster child of India's EV public transport push. Backed by Megha Engineering, it supplies e-buses to state transport units across the country and has been riding high on the government's green energy drive.

Below is a summary of its fundamentals.

How is Olectra rated by Value Research?

Olectra has an overall rating of 2/5 by Value Research Online .

Here's how it does on other parameters:

• Quality: 5/10
  
• Growth: 9/10
  
• Valuation: 2/10
  
• Momentum: 3/10

The bottom line

EV stocks like Olectra have been market favourites. But the stock decline served a reminder - execution matters as much as ambition.

Yes, the long-term EV story in India is still solid. Governments are pushing clean transport, and the demand pipeline is strong. But if Olectra can't deliver on time or keep margins healthy, that's a real problem. Investors don't just want vision, they want results.

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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.