Olectra H1 revenue rose 26% as pre-tax profit gained 5%

Olectra reported H1 FY27 revenue of Rs 1,262.52 crore for the six months ended 30 September 2026, up 26%, while profit before tax rose 5% to Rs 107.43 crore. The gap came despite EBITDA rising 23% to Rs 182.79 crore, alongside higher finance costs, depreciation and several operating-expense lines.

Why did Olectra's H1 profit before tax lag revenue growth?

Olectra's profit before tax, or PBT, lagged revenue growth because higher costs below and within operating profit narrowed the conversion of revenue growth into pre-tax earnings in H1 FY27. Revenue increased by Rs 258.67 crore to Rs 1,262.52 crore from Rs 1,003.85 crore in H1 FY26, while PBT increased by Rs 5.17 crore from Rs 102.26 crore.

Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased to Rs 182.79 crore from Rs 148.98 crore, a 23% rise. Profit before interest and tax, or PBIT, increased 19.6% to Rs 153.07 crore from Rs 128.00 crore, showing that growth moderated as reported costs and other items were included after EBITDA.

On the reported figures, Olectra's PBT was about 8.5% of revenue in H1 FY27, compared with about 10.2% in H1 FY26. The presentation does not state a single management explanation for this movement, but the profit-and-loss statement details substantial changes in finance costs, depreciation and other expense categories.

Which Olectra segments contributed to H1 revenue growth?

Olectra's Mobility Division supplied most of the H1 FY27 revenue increase, generating Rs 1,083.60 crore, up 24.1% from Rs 873.50 crore a year earlier. The division sold 759 vehicles in H1 FY27, compared with 536 in H1 FY26, an increase of 223 vehicles.

Mobility EBITDA rose 33.7% to Rs 138.19 crore from Rs 103.37 crore, and its EBITDA margin increased to 12.8% from 11.8%. Mobility PBIT rose 31.9% to Rs 111.70 crore, while its PBIT margin rose to 10.3% from 9.7%.

The Energy Division recorded faster revenue growth of 37.3%, reaching Rs 178.92 crore in H1 FY27 from Rs 130.35 crore. However, Energy EBITDA declined 2.2% to Rs 44.60 crore and its margin fell to 24.9% from 35.0%; PBIT declined 4.5% to Rs 41.36 crore from Rs 43.33 crore.

Mobility accounted for Rs 210.10 crore of Olectra's Rs 258.67 crore consolidated revenue increase, while Energy accounted for Rs 48.57 crore. At the PBIT level, Mobility added Rs 27.04 crore, whereas Energy reduced PBIT by Rs 1.97 crore, producing a different profit outcome from the revenue comparison.

What expense movements limited Olectra's H1 pre-tax profit?

Olectra's finance costs rose by Rs 19.82 crore to Rs 45.64 crore in H1 FY27 from Rs 25.82 crore in H1 FY26. Depreciation and amortisation increased by Rs 8.82 crore to Rs 29.72 crore, and both items reduced PBT after operating performance.

Cost of materials consumed rose 27.7% to Rs 968.30 crore from Rs 758.22 crore, broadly in line with the 25.8% revenue increase. Testing and other operating expenses increased to Rs 50.13 crore from Rs 30.31 crore, while other expenses increased to Rs 39.74 crore from Rs 17.65 crore.

Not every reported line increased. Employee-benefit expense decreased to Rs 54.52 crore from Rs 55.75 crore, while the change in inventories of finished goods and work-in-progress was negative Rs 20.74 crore, compared with negative Rs 2.31 crore. Other income rose to Rs 17.17 crore from Rs 9.66 crore, and the share of profit of associates increased to Rs 5.62 crore from Rs 2.31 crore.

How did Olectra's second quarter compare with H1?

Olectra's Q2 FY27 revenue rose 4.6% to Rs 687.01 crore from Rs 656.62 crore in Q2 FY26, below the 25.8% H1 growth rate. The summary presentation rounds the quarterly revenue increase to 5%, while Q2 EBITDA rose 18% to Rs 109.89 crore and PBT rose 6% to Rs 72.74 crore.

The Mobility Division's Q2 revenue increased 1.3% to Rs 588.97 crore, but EBITDA rose 27.6% to Rs 84.75 crore. Its EBITDA margin increased to 14.4% from 11.4%, exceeding the division's 12.8% margin for H1 FY27.

Energy revenue rose 30.1% in Q2 FY27 to Rs 98.04 crore from Rs 75.37 crore, but EBITDA declined 5.4% to Rs 25.14 crore. The Energy EBITDA margin fell to 25.6% from 35.3%, consistent with its H1 margin decline to 24.9% from 35.0%.

Olectra's FY26 revenue from operations was Rs 2,312.17 crore, compared with Rs 1,801.90 crore in FY25, while profit after tax rose to Rs 179.53 crore from Rs 139.21 crore. The H1 FY27 presentation does not disclose a full-year revenue, EBITDA or profit target.

What balance-sheet and cash-flow changes accompanied H1 FY27?

Olectra's trade receivables increased to Rs 1,250.52 crore at 30 September 2026 from Rs 673.40 crore a year earlier. Total assets rose to Rs 2,905.33 crore from Rs 2,364.21 crore over the same dates, while inventories declined to Rs 272.00 crore from Rs 409.39 crore.

Net cash generated from operating activities was Rs 190.31 crore in H1 FY27, compared with net cash used in operating activities of Rs 30.97 crore in H1 FY26. Cash generated from operations was Rs 203.81 crore, including a Rs 203.66 crore increase in other current liabilities, while trade receivables used Rs 263.29 crore of cash.

Non-current borrowings were Rs 161.72 crore at 30 September 2026, compared with Rs 216.72 crore a year earlier, and current borrowings were Rs 113.30 crore compared with Rs 149.56 crore. Cash and cash equivalents were Rs 7.31 crore at the latest half-year date, versus Rs 10.22 crore at 30 September 2025.

Conclusion

Olectra's H1 FY27 results show revenue growing faster than pre-tax profit: Mobility increased revenue, vehicle sales and operating margins, but Energy's margin decline and increases in finance costs, depreciation, materials, testing and other expenses limited PBT growth to 5%. The movement from Rs 1,003.85 crore in revenue to Rs 1,262.52 crore did not produce a proportionate increase from Rs 102.26 crore to Rs 107.43 crore in PBT.

The next results will show whether Mobility can maintain its H1 FY27 EBITDA margin of 12.8% and whether Energy's 24.9% margin stabilises after its decline from 35.0%. Olectra has not provided a full-year target, while receivables of Rs 1,250.52 crore and operating cash flow of Rs 190.31 crore at 30 September 2026 remain disclosed items to track.