Olectra Greentech Stock Jumps 6% on New Hyderabad EV Plant News

Olectra Greentech Shares Surge on Operational Milestone

Shares of Olectra Greentech Ltd. climbed over 6% on Friday following the announcement that its greenfield electric vehicle (EV) manufacturing facility in Hyderabad has commenced commercial operations. The company has set December 31, 2025, as the official Commercial Operation Date (COD) for the new plant, a significant step in its expansion strategy within India's growing electric mobility sector. This development signals the company's readiness to scale up production and meet increasing demand for electric buses.

Stock Performance and Market Reaction

The market responded positively to the news, with Olectra Greentech's stock rising as much as 6.18% during the day to hit an intraday high of ₹1,274.8 per share. This marked the most significant single-day gain for the stock since December 24 of the previous year. Although the stock pared some gains later in the session, it continued to trade strong at ₹1,266, up 5.4%, outperforming the Nifty 50 index, which saw a modest 0.40% advance. Trading volume was notably high, recorded at 3.3 times the 30-day average, indicating strong investor interest. Despite this recent surge, the stock has declined by 12% year-to-date, in contrast to the benchmark Nifty 50's 10.5% gain. The company currently holds a market capitalisation of ₹10,330.68 crore.

Details of the New Hyderabad Facility

Olectra Greentech's new manufacturing plant is located at Seetharampur, Hyderabad, in Telangana. The company has formally declared the COD and communicated this milestone to its project lender, the State Bank of India. The facility's first phase is now operational with an annual production capacity of 2,500 electric buses per shift. This initial capacity represents 50% of the total planned per-shift output of 5,000 buses per year. This phased approach allows the company to ramp up production systematically while optimizing operational efficiency and capital deployment.

Financial Health and Recent Orders

The operational launch comes on the back of steady financial performance. For the quarter ended September 30, 2025, Olectra Greentech reported a 4% year-on-year increase in consolidated profit after tax, reaching ₹49.43 crore compared to ₹47.65 crore in the same period last year. Revenue from operations also grew, rising to ₹657 crore from ₹524 crore a year earlier. The company's robust order book further supports its expansion plans. In April of the previous year, it secured a significant Letter of Award (LoA) from the Himachal Road Transport Corporation (HRTC) worth ₹421.01 crore. The order is for the supply and maintenance of 297 electric buses, scheduled for delivery over an 11-month period.

Strategic Importance and Industry Impact

The commencement of operations at the Hyderabad plant is a crucial development for Olectra Greentech. It significantly enhances the company's manufacturing capabilities, positioning it to better serve its growing order book and compete effectively in the EV market. As a prominent manufacturer of electric buses, insulators, and trucks, Olectra is a key player in India's transition towards sustainable public transportation. This expansion aligns with national goals to reduce carbon emissions and promote cleaner transport solutions. The increased production capacity will enable the company to capture a larger market share and solidify its leadership position in the electric bus segment.

Future Outlook

With Phase-I of the Hyderabad facility now operational, Olectra Greentech is well-positioned for future growth. The company's focus will likely shift to scaling up production to meet the full planned capacity of 5,000 buses per shift. This enhanced manufacturing muscle, combined with a healthy order pipeline and supportive government policies for electric mobility, provides a strong foundation for the company's long-term prospects. The successful execution of this project is expected to boost investor confidence and drive sustained value creation.