Is Olectra Greentech stock the next big EV investment?
The electric vehicle (EV) industry in India is on an upward trajectory, and Olectra Greentech is emerging as a key player. The company has reported a 72% year-on-year (YoY) increase in profit after tax (PAT) for Q3 FY25, reaching Rs 46 crore. But what’s fueling this growth? Let’s explore.
Also read: Kaynes Technology Shares Plunge 19% After Q3 Results and FY25 Guidance Cut
Olectra Greentech’s financial performance in Q3 FY25
Olectra Greentech, a prominent manufacturer of electric buses and composite polymer insulators, has posted robust numbers for the third quarter of FY25. Below are the key financial highlights:
| Financial Metric | Q3 FY25 | Q3 FY24 | YoY Growth |
| Net Sales | Rs 515.37 crore | Rs 342.14 crore | 50.63% |
| Profit After Tax (PAT) | Rs 46.33 crore | Rs 26.99 crore | 71.67% |
| Profit Before Tax (PBT) | Rs 61.95 crore | Rs 33.83 crore | 83.12% |
| EBITDA | Rs 81.16 crore | Rs 51.36 crore | 58.02% |
| Total Expenses | Rs 456.24 crore | – | 44.58% increase |
On a nine-month basis, Olectra Greentech’s consolidated net profit surged 86.75% YoY to Rs 117.88 crore, while total revenue climbed 56.35% YoY to Rs 1,352.97 crore.
Also read: Adani Power Q3 results overview: Net profit rises 12%
Key factors driving Olectra’s growth
1. Strength in the e-bus segment
The electric bus (e-bus) division is a major revenue driver for Olectra Greentech. In Q3 FY25, the segment generated Rs 468.31 crore, reflecting a 53.01% YoY growth. With increasing government initiatives promoting public transport electrification, demand for e-buses is on the rise.
2. Steady growth in the insulator segment
While smaller in comparison, the composite polymer insulator division has also shown growth. It reported Rs 47.05 crore in revenue, up 30.44% YoY. This segment adds diversification to Olectra’s business model.
3. Managing rising expenses while scaling operations
Despite a 44.58% YoY increase in total expenses, the company’s profits remain strong. The cost of materials consumed rose 32.77% to Rs 366.84 crore, while employee benefits expenses increased by 25.27% to Rs 22.95 crore. This indicates efficient scaling while managing costs.
Market response: Olectra Greentech stock surges
Following the release of its Q3 FY25 results, Olectra Greentech stock jumped 11.86% to Rs 1,482.25, reflecting positive investor sentiment. The company’s growth aligns with India’s larger push for EV adoption and green energy solutions.
Also read: Top Renewable Energy Stocks to Invest in India for 2024
The bigger picture: India’s EV landscape
Olectra Greentech’s success is a part of the broader EV industry boom in India. Government policies such as Faster Adoption and Manufacturing of Electric Vehicles (FAME) and state-level subsidies are driving the demand for electric buses and related infrastructure. This creates a strong foundation for continued growth in the coming years.
You may also like: Best Green Hydrogen Stocks to Invest in India for 2025
Should you invest in Olectra Greentech stock?
Olectra Greentech’s strong financial performance and leading position in the EV space make it a compelling stock to watch. However, investors should consider the following factors:
- Government policies: Any changes in EV incentives could impact growth.
- Market competition: Rising competition in the EV sector could affect profit margins.
- Global supply chain risks: Material costs and semiconductor shortages remain a challenge.
For investors with a long-term view on India’s EV transition, Olectra Greentech presents a strong opportunity for portfolio growth.
