Olectra Greentech: Powering the EV Revolution | Q3 FY2025 Analysis
No 1 Electric Bus Manufacturer
📅 Edition: February 2025
🔎 Ticker: NSE: OLECTRA | BSE: 532439
📍 Sector: Electric Vehicles (EVs) & Composite Insulators
📌 Key Takeaways (At a Glance)
✅ Market Cap: ₹11,919 Cr
✅ Current Price: ₹1,452
✅ 52-Week High/Low: ₹2,222 / ₹1,240
✅ Stock P/E: 90.6 | Book Value: ₹120
✅ ROCE: 14.8% | ROE: 8.77%
✅ Sales Growth (YoY): 🚀 32.3%
✅ Profit Growth (YoY): 🚀 46.0%
✅ Sales (TTM): ₹1,642 Cr
✅ Promoter Holding: 50.0% (-1.60% in 3Y)
📈 Q3 FY2025 Financial Performance
Olectra Greentech Limited (OGL) has delivered an impressive Q3 FY2025, showcasing strong topline growth, margin expansion, and increased demand for its electric buses.
📌 Key Driver: Government tenders for electric buses & policy incentives under FAME-II.
🚀 Business Segments Performance
1️⃣ Electric Vehicles (EVs) - The Powerhouse
✅ Revenue Contribution: ₹45,977.93 Lakh (~90.7% of total revenue)
✅ YoY Growth: 55.4% 📈
✅ PBT (Before Tax & Interest): ₹5,926.52 Lakh
🔹 Major Growth Factors:
✔ Rising government tenders for electric buses under the FAME-II scheme
✔ Expansion into E-trucks & commercial EVs (New Segment)
✔ Strengthening partnerships with BYD & EVEY Trans
🎯 Future Outlook:
Capacity Expansion: New plant expected to double production capacity by FY2026
New Launches: Hydrogen-powered buses and high-end battery electric trucks
2️⃣ Composite Polymer Insulators - The Cash Flow Driver
✅ Revenue Contribution: ₹4,705.52 Lakh (~9.3% of total revenue)
✅ YoY Growth: 30.5%
✅ PBT (Before Tax & Interest): ₹1,224.35 Lakh
📌 Steady Revenue Stream: Demand is rising due to power grid expansion and transmission upgrades.
🎯 Future Outlook:
Export Expansion: Targeting new markets in the Middle East & Africa
New Product R&D: Advanced insulator technology under development
🌏 Future Growth Plans & Projections
⚡ Expanding Manufacturing & Capacity
📌 Planned Capex: ₹300-500 Cr investment
📌 New Factory: Increasing bus manufacturing capacity for upcoming government contracts
📌 Local Battery Production: Reducing import dependency to improve margins
🔹 EV Market Growth Projections (2025-2030)
India’s EV penetration to reach ~40% of buses by 2030
🔍 Competitive Landscape & Risks
Key Risks to Monitor
1️⃣ Government Policy Changes: Subsidy cuts (FAME-II) could impact future demand
2️⃣ Margin Pressure: Battery raw material price fluctuations (Lithium & Cobalt)
3️⃣ Execution Delays: New plant expansion timelines could impact deliveries
💰 Valuation & Investment Outlook
📊 Investment Thesis
✅ Long-Term Bull Case:
Government-backed growth: EV adoption increasing
First-mover advantage: Strong pipeline of bus orders
Manufacturing expansion: Higher capacity = Higher revenue
⚠ Short-Term Risks:
High valuation may lead to price correction
Competition from Tata, Ashok Leyland & global EV firms
📢 Final Thoughts
Olectra Greentech remains a high-growth, high-potential investment in India’s booming EV revolution. While near-term valuation concerns persist, the long-term upside is significant with increasing EV adoption, government contracts, and manufacturing expansion.
📜 Disclaimer
This report is for informational purposes only and does not constitute financial advice. Please conduct your own due diligence before making investment decisions.