Olectra Greentech Shares Tank 14% After Maharashtra Government Cancels Major E-Bus Order
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Olectra Greentech Shares: Shares of Olectra Greentech Ltd fell as much as 14% to an intraday low of Rs 1,160 in Tuesday morning trade
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Olectra Greentech Share Price: Shares of Olectra Greentech Ltd fell as much as 14 per cent to an intraday low of Rs 1,160 in Tuesday morning trade, May 27, following Maharashtra Transport Minister Pratap Sarnaik's call to cancel the company's electric bus order over missed delivery deadlines.
In a post on social media platform X, Sarnaik stated that the company had failed to deliver a single bus out of the 1,000 units scheduled for handover by May 22.
While he did not mention Olectra Greentech by name, Sarnaik said officials were instructed to cancel the tender for 5,150 buses due to the supplier's lack of action, casting doubt on the project's viability.
The order, awarded in July 2023 to a consortium of Olectra and Evey Trans Pvt Ltd, is valued at nearly Rs 10,000 crore over a 12-year contract. Under the agreement, Evey was responsible for procuring buses from Olectra and supplying them to the Maharashtra State Road Transport Corporation (MSRTC) over 24 months, while Olectra would handle fleet maintenance.
The minister's comments followed a review meeting on Monday evening at the MSRTC headquarters, where he noted the company had made no progress despite being given a revised delivery timeline. Olectra Greentech has yet to issue an official response regarding the potential cancellation.
This development comes shortly after the company reported strong Q4 financial results. Olectra's revenue grew 58 percent year-on-year, net profit doubled, EBITDA increased 70 per cent, and margins improved by 100 basis points. The company plans to hold an analyst call on Wednesday, May 28, at 4:30 PM to discuss the results.
At around 9:30 am, Olectra shares traded at Rs 1,266, down 6 per cent from the previous close. Despite a 13 per cent gain over the past month, the stock is still down 9.2 per cent year-to-date.
First Published:
May 27, 2025, 11:17 IST
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