Olectra Greentech Navigates EV Growth with Record Deliveries and Strategic Expansion

Olectra Greentech Limited, a prominent player in India's electric vehicle (EV) and composite polymer insulator sectors, has reported a robust financial performance for the second quarter and first half of the fiscal year 2026. The company's consolidated revenue for Q2 FY26 surged by 25% year-on-year, reaching INR 656.62 crores. For the first half of FY26, Olectra's revenue crossed the significant INR 1,000 crore mark, settling at INR 1,003.85 crores, marking a 20% growth compared to the previous year. This impressive top-line expansion was complemented by a healthy 9% increase in EBITDA for H1 FY26, which stood at INR 148.98 crores, and a 5% rise in Profit After Tax (PAT) to INR 75.46 crores for the same period. These figures underscore the company's strong operational efficiency and its ability to capitalize on the burgeoning demand for electric mobility solutions in India.

The e-vehicle division continues to be the primary revenue driver, contributing approximately 87.01% of the total H1 FY26 revenue with INR 873.49 crores. The Insulator Division, while smaller, demonstrated significant growth, accounting for 12.99% of the H1 FY26 revenue at INR 130.35 crores. This segment's performance highlights the company's diversified business model and its ability to generate healthy returns from its non-EV operations. Management noted that the EV segment's ramp-up in deliveries significantly contributed to the top-line growth, although margin compression was observed due to a product mix shift. Despite this, the company aims to maintain healthy EBITDA margins in the 12-14% range for the EV segment and 10-12% for the overall business in the long term.

Strategic Initiatives and Market Leadership

Olectra Greentech's strategic vision is clearly focused on consolidating its market leadership and expanding its footprint in the rapidly evolving EV ecosystem. The company has been a consistent frontrunner, ranking among the top two OEMs in the electric bus segment since its inception and achieving the number one position in deliveries in FY25. For H1 FY26, Olectra secured a spot in the top three, demonstrating sustained competitive strength. The company's order book remains robust, with over 9,000 electric vehicles in the pipeline, providing substantial revenue visibility and a strong foundation for future growth.

A key strategic initiative is the ongoing expansion of its greenfield manufacturing plant in Hyderabad. This state-of-the-art facility, built on 150 acres, has already commenced partial operations and boasts a capacity of 2,500 vehicles per shift, which can be scaled up to 5,000 units in two shifts. This expansion is critical for meeting the anticipated surge in demand, especially with the Indian EV bus market projected to grow at a 40% CAGR in the coming years, driven by government initiatives like the 10,900 CESL bus tender and the upcoming PM e-Sewa tender.

Technological innovation is another cornerstone of Olectra's strategy. The company has successfully obtained homologation certification for its advanced blade battery technology, which utilizes a cell-to-pack design. This innovation is expected to significantly enhance the efficiency and performance of its electric buses, with production and customer deliveries anticipated by Q4 FY26. Furthermore, Olectra is actively working on developing its own Intellectual Property Rights (IPR) powertrains, a move that will reduce reliance on external technology partners like BYD and strengthen its indigenous manufacturing capabilities.

Diversification and Future Outlook

Beyond public transport, Olectra is strategically diversifying its market segments. The company is strengthening its presence in the inter-city and inter-state private transport segments and is poised to enter the staff transport private segment. These new avenues represent significant opportunities to expand its customer base and revenue streams. The electric tipper and truck segment also presents a promising growth area, with 92 tippers delivered cumulatively and 41 in H1 FY26 alone, indicating visible traction in this nascent market.

Despite the positive outlook, management acknowledged challenges, particularly concerning the readiness of depot infrastructure, power availability, and charging facilities from State Transport Undertakings (STUs). These external factors can impact the pace of vehicle deliveries and deployment. However, Olectra is actively coordinating with STUs to mitigate these issues and align its production schedules with infrastructure development. The company also faces ongoing supply chain challenges, including permanent magnet restrictions and geopolitical issues, but remains confident in its ability to manage these complexities.

Olectra Greentech's Q2 and H1 FY26 results reflect a company in a strong growth phase, adept at navigating market dynamics and external challenges. With record deliveries, a robust order book, strategic capacity expansion, and a clear focus on technological innovation and market diversification, Olectra is well-positioned to continue its upward trajectory in India's rapidly expanding electric mobility sector. The management's commitment to operational efficiency and profitable growth instills confidence in its ability to deliver sustained value for its stakeholders in the coming quarters and beyond.