Olectra Greentech Secures ₹1,800 Crore Order for 1,085 E-Buses

Introduction to the Landmark Deal

Olectra Greentech Ltd., a prominent electric bus manufacturer in India, announced on Monday that its associate company, Evey Trans Private Limited (EVEY), has received a significant order from the Telangana State Road Transport Corporation (TGSRTC). The contract, valued at approximately ₹1,800 crore, is for the supply, operation, and maintenance of 1,085 electric buses. This development, which caused the company's shares to rise by over 4%, underscores the growing momentum of electric vehicle adoption in public transportation across Indian states.

Breakdown of the Order

The order comprises a total of 1,085 12-metre buses intended for intra-city operations within Telangana. The fleet will consist of 1,025 non-air-conditioned buses and 60 air-conditioned units. These vehicles are designed to cater to the daily commuting needs of the public, aligning with the state's push for cleaner and more sustainable urban mobility solutions. The buses will be procured by EVEY from Olectra Greentech and are scheduled for delivery over a 20-month period.

The Gross Cost Contract Model Explained

The agreement is structured under a Gross Cost Contract (GCC) or OPEX model, a framework increasingly favoured by state transport undertakings. Under this model, Olectra, through EVEY, will be responsible for the supply, operation, and maintenance of the buses for a contract period of 12 years. TGSRTC will pay a fixed rate per kilometre, while retaining control over bus routes, scheduling, and fare collection. This approach minimises the upfront capital expenditure for the state transport corporation and ensures professional management of the fleet.

Role of Government Initiatives

This procurement is part of the PM E-drive initiative, a central government program aimed at accelerating the adoption of electric buses in public transport. The initiative is implemented by Convergence Energy Services Limited (CESL), a government entity that facilitates large-scale procurement for state transport corporations. The involvement of this program highlights a coordinated national strategy to reduce carbon emissions from the transport sector and promote indigenous manufacturing under the 'Make in India' vision.

Key Order Details

Olectra's Market Position and Background

Based in Hyderabad and part of the MEIL Group, Olectra Greentech has established itself as a leader in India's electric commercial vehicle market. The company has already deployed over 3,600 electric vehicles across the country and holds a substantial order book exceeding 10,000 vehicles. This new contract further solidifies its position and demonstrates its capacity to handle large-scale deployments. The company will also be responsible for the maintenance of these buses throughout the 12-year contract, ensuring a long-term revenue stream.

Financial Implications and Market Reaction

The announcement was met with a positive response from the market, with Olectra Greentech's shares jumping over 4% in intraday trading on February 23, 2026. The company's regulatory filing clarified that the transaction between Olectra and its associate EVEY is a related-party transaction conducted on an 'arm's length' basis, ensuring fair market value and transparency. The deal is a significant boost to Olectra's financials and reinforces investor confidence in its growth trajectory.

Analysis of the Deal's Significance

This order is more than just a commercial transaction; it represents a major step forward in the electrification of public transport in India. For Telangana, it means a significant upgrade to its urban bus fleet, promising reduced operational costs and lower pollution levels in Hyderabad. For Olectra, it validates its technological capabilities and manufacturing scale. The deal also signals the viability of the GCC model, which is likely to be replicated in other states looking to transition to electric mobility without bearing the full financial burden upfront.

Conclusion

Olectra Greentech's ₹1,800 crore contract with TGSRTC is a landmark event for India's electric vehicle ecosystem. The deployment of 1,085 e-buses will significantly enhance Hyderabad's public transport infrastructure while contributing to national climate goals. As deliveries commence over the next 20 months, this project will serve as a key example of public-private partnership driving the future of sustainable urban transportation in the country.