Olectra Greentech Ltd saw its shares crash by 14% to ₹1,160 in early trade on Tuesday, May 27, after Maharashtra Transport Minister Pratap Sarnaik announced the cancellation of a large electric bus order. The minister said the decision was taken as the company failed to deliver even one of the 1,000 buses that were due by May 22.
Although Sarnaik did not name the company directly in his statement on social media, he confirmed that the transport department had decided to cancel the tender for 5,150 electric buses. The cancellation comes after a review meeting held at the MSRTC headquarters, where officials raised serious concerns about the project’s future due to non-performance.
The ₹10,000 crore contract was first allotted in July 2023 to a joint consortium of Olectra Greentech and Evey Trans Pvt Ltd. As part of the contract, Evey was to buy buses from Olectra and deliver them to the Maharashtra State Road Transport Corporation (MSRTC) in a span of two years, with Olectra undertaking maintenance for 12 years.
In spite of being provided with a longer time frame, the consortium didn’t make any advancement, and the entire project was canceled. So far, there has been no official word from Olectra on the cancellation.
This follows a robust Q4 report by Olectra. The firm achieved a 58% year-over-year revenue increase, net profit doubling. 70% growth in EBITDA also occurred, with the respective margin expanding 100 basis points. The management has arranged to hold a call with investors on Wednesday, May 28, to discuss the results and developments.
Olectra shares opened at ₹1,266 by 9:30 AM, down by more than 6% from the closing on the previous day. The stock has increased by nearly 13% in the last month but has now fallen 9.2% year to date in 2025.
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Source: Moneycontrol
News Desk
