Olectra Greentech FY26: ₹2,312 Cr Revenue & A Multiple That Hasn’t Moved
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1. At a Glance
Olectra delivers buses, not apologies. FY26 saw ₹2,312 Cr revenue (+28% YoY) and ₹177 Cr net profit (+28% YoY), hitting the highest numbers in company history. The market pays 59.5x earnings here.
The e-bus market is finally moving—5,423 units sold in India in FY26, a 30% jump, and Olectra captured roughly one-fifth of that. A 10,000-unit order book sits on the shelf, waiting to be executed over the next 2–3 years.
But the machine humming isn’t being rewarded at the till. The multiple has been flat while the company’s grown, execution risk from supply chains lingers, and the new indigenous platforms are still in the oven.
A company with cash flow headaches, working capital bloat, and a board that just doubled its dividend. Make sense only if you believe the order book survives, and capacity ramp works.
2. Introduction
Olectra started in 2000 making insulators—composite polymer business with 18% margins and zero drama. In 2016, management bet big on electric buses via a tech partnership with BYD Auto of China.
The bet paid. E-buses went from a fleck in FY22 (82% of segment revenue) to the engine of the firm today (91% of revenue in 9M FY25). ₹2,312 Cr total revenue in FY26 means the company is finally playing at scale.
The Seetharampur plant came online in December 2025—Phase 1 hit 2,500-unit annual capacity (single shift); Phase 2 will push it to 5,000. Deliveries were 1,280 buses in FY26 (vs. 972 in FY25, a 32% bump). Management targets 2,500 deliveries in FY27.
Management speaks in earnest about 10,000 vehicles over the next 30 months. State transport bodies want them. Infrastructure still lags. Credit rating upgraded to IND A in May 2026, signaling comfort but not euphoria.
3. Business Model: WTF Do They Even Do?
E-Vehicles: The company makes and sells electric buses (7m, 9m, 12m variants) and a few electric tippers. Revenue comes two ways:
Outright sale to STUs at a gross cost (company makes a margin, customer bears operations).
Gross cost contract: Olectra either operates the buses itself or funds SPVs that do. Revenue happens on operations; capex gets absorbed.
The second model is thorny. SPVs need debt, operator needs subsidy, payment cycles are glacial. It’s why working capital is a horror show.
Insulators: Composite polymer insulators for high-voltage transmission. Exports are 40–50% of sales here. FY26 saw this segment’s EBIT margins expand to 33% (vs. 25% in FY25). Domestic demand from railways, power transmission, and discoms is heating up. Management expects 50%+ revenue growth in FY27 in this division alone.
Product Mix: The margin story hinges on it. A 12m coach bus earns fatter margins than a 9m standard bus. In FY26, the order book was 55% 9m and 45% 12m/coaches—so as execution ramps, mix will shift downward. Management openly admits target EBITDA margins will compress from the current 14–15% toward 10–12% as volume scales.
4. Financials Overview
Consolidated figures, in ₹ crore, full-year results.
Metric
FY26
FY25
YoY Change
Revenue
2,312
1,802
+28%
EBITDA
352
261
+35%
EBITDA Margin
15.2%
14.5%
+70 bps
PAT
177
139
+28%
EPS (annualised)
21.62
16.92
+28%
Full-year EBITDA was strong and margins held despite cost inflation. The quarter itself (Q4 FY26) delivered ₹100 Cr operating profit on ₹645 Cr revenue (15.5% OPM), a crisp finish.
Interest expense climbed to ₹61 Cr for the full year (vs. ₹51 Cr in FY25)—debt taken to fund Phase 1 capex. Tax rate stayed around 27%, a normal level for this company.
Management Concall Highlights (June 2026):
The MD confirmed 1,280 bus deliveries in FY26 (359 in Q4 alone). Of those, 40–50% were fitted with BYD’s new blade battery technology, which he highlighted as a recent launch. The company speaks of “consistent profitability” in the last three quarters—more PR spin than surprise, since margins have hovered 14–15% throughout.
On FY27 guidance, management targets 2,500 vehicles. That’s more than double current run rate. The same voice admitted geopolitical friction (Ukraine war, shipping availability) is making it “not easy,” which is code for “achievable but messy.”
5. Market Expectations & Historical Multiples
This section describes how the market is currently pricing the company and how that compares with its own history and peer group. It is descriptive, not predictive.
Metric
Current
5-Yr Avg
Peer Median
P/E (Current Price ₹1,286)
59.5
119
28.9
EV/EBITDA
30.6
—
—
ROE
15.6%
11%
18.2%
ROCE
21%
13%
19.7%
The market currently pays 59.5x earnings here versus the peer median of 28.9x. At the current price, that assumes the company can compound earnings fast enough to justify the premium, or the market is pricing growth that hasn’t shown up yet.
