Shares of Olectra Greentech Ltd slipped as much as 14 percent to hit an intraday low of Rs 1,160 in morning trade on Tuesday, May 27, after Maharashtra’s Transport Minister Pratap Sarnaik called for the cancellation of the company’s electric bus order over missed delivery deadlines.
In a post on social media platform X, Sarnaik said that the company had failed to deliver even a single bus from the 1,000 units scheduled for handover by May 22. Though he did not name the company directly, Sarnaik said officials had been directed to cancel the tender for 5,150 buses due to the supplier's inaction, raising questions about the project's viability.
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The order, originally awarded in July 2023 to a consortium of Olectra and Evey Trans Pvt Ltd, was worth nearly Rs 10,000 crore over a 12-year contract. Under the agreement, Evey was to procure the buses from Olectra and supply them to the Maharashtra State Road Transport Corporation (MSRTC) over 24 months, while Olectra would provide maintenance for the fleet.
The minister’s remarks followed a review meeting held Monday evening at the MSRTC headquarters. He stated that the company had shown no progress on the project despite being given a revised delivery schedule.
As of now, Olectra Greentech has not issued any official comment on the potential cancellation.
The development comes just as the company reported strong financials for the March quarter. Olectra’s revenue rose 58 percent year-on-year, while net profit doubled. EBITDA jumped 70 percent, and margins improved by 100 basis points. The company is expected to hold an analyst call on Wednesday, May 28, at 4:30 PM to discuss the results.
At about 9:30 am, shares of the company were trading at Rs 1,266, lower by 6 percent from the last close. Despite gaining 13 percent in the past month, shares are down 9.2 percent so far in 2025.
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