Olectra Greentech Shares Crash 13% as Rs. 10,000-Cr E-Bus Deal Gets Axed by Maharashtra Govt

Hyderabad-based electric vehicle (EV) manufacturer Olectra Greentech Ltd witnessed a sharp fall of 13.7% in its stock price during Tuesday's trading session after the Maharashtra government canceled a massive Rs. 10,000-crore electric bus contract due to non-compliance with delivery commitments.

Olectra Greentech Share Price Nosedives

In pre-opening trade, Olectra Greentech shares were down by 14.78% on the BSE. The stock opened with heavy selling pressure after Maharashtra's Transport Minister Pratap Sarnaik announced the discontinuation of the tender awarded to Olectra and its consortium partner Evey Trans Private Limited (EVEY). As of 10:40 Olectra Greentech Shares were trading at Rs. 1265.20 down 5.96%.

Here's What Went Wrong With Olectra Greentech

As per A CNBC report, In July 2023, Olectra had disclosed to stock exchanges that it had received a letter of intent (LoI) from Maharashtra State Road Transport Corporation (MSRTC) for the supply, operation, and maintenance of 5,150 electric buses and associated infrastructure. The contract, valued at approximately Rs. 10,000 crore, was touted as the world's largest e-bus order at the time as per reports.

Olectra Greentech was expected to supply buses to EVEY over a 24-month period, but as of May 22, 2025, none had been delivered. Despite being given a revised deadline to provide at least 1,000 buses, the company failed to meet the target, as stated by Transport Minister Pratap Sarnaik on X.

Furthermore Transport Minister Pratap Sarnaik in his X Post stated that, "The company concerned has become inactive in supplying 5,150 leased electric buses... Despite being given an extended deadline, they have failed to deliver even a single bus. Therefore, the tender agreement should be canceled."

He also asked MSRTC to rebuild and convert existing Shivshahi buses into Hirkani (semi-comfort) buses, ensuring they retain the traditional green and white colors. The minister issued a strict warning to officials over cleanliness issues and passenger complaints, especially from women travelers.

Olectra's EV Order Book at Risk

Olectra Greentech, which had an order book of 10,969 electric buses as of March 31, 2024, is now at risk of losing more contracts if operational delays continue. The canceled order from MSRTC was a significant portion of this book, and investor confidence has clearly taken a hit.

Olectra Greentech Q4 Results

Olectra Greentech Ltd reported strong Q4 FY25 results, with revenue rising 55% year-on-year to Rs. 448.92 crore, driven by a 67% increase in electric vehicle deliveries to 219 units. The company's EBITDA grew 36% to Rs. 58.35 crore, while Profit Before Tax (PBT) surged 45% to ₹29.25 crore. Profit After Tax (PAT) stood at Rs. 20.69 crore, up 39% from the previous year, and earnings per share (EPS) for the full year increased to Rs. 16.92 from Rs. 9.36.