Leading electric bus manufacturer Olectra Greentech is stepping up investments to capitalise on the rapidly expanding electric mobility market. The company plans to invest ₹300–350 crore in capital expenditure over the next two years, primarily to develop new products. The company has put in place plans to develop new vehicle platforms and enter adjacent segments, Managing Director Mahesh Babu said during the company’s earnings call.
The company will focus on new 12-metre and 9-metre electric bus platforms, along with the company’s entry into the electric truck segment. Olectra has already completed pilot runs with 116 electric tippers, positioning itself to tap into a market that is expected to scale up meaningfully in the coming years.
“Our growth will not come by staying in the same segment. Exponential growth will come from new products, new markets and new technologies,” Babu said, underlining the company’s long-term strategy of expanding its addressable market while deepening its technology capabilities.
Olectra has already invested ₹400 crore in capital expenditure during the first nine months of FY26, with manufacturing infrastructure designed for a capacity of 2,500 vehicles per shift. While civil works and equipment are fully ready for this scale, manpower has been aligned with current production requirements.
The company expects to progressively utilise its full installed capacity as market absorption improves, particularly over FY27. As with the broader automotive industry, Olectra expects effective utilisation to stabilise at around 80–85% of net capacity, accounting for supply-chain dynamics and operational efficiencies.
Importantly, management indicated that capital investment will not rise proportionately with volumes until production reaches 5,000 vehicles per annum. Beyond current levels, growth will largely be driven by variable costs, including manpower, power and utilities, rather than heavy incremental CAPEX.
Since inception, Olectra has deployed over 3,600 electric buses across India and logged more than 500 million green kilometres, reinforcing its leadership in sustainable public transportation.
Olectra continues to enjoy strong demand visibility, backed by a robust order book. Recently, it emerged as the L1 bidder for 1,785 electric buses under a CESL tender, with discussions underway to convert this into firm orders in the coming month.
Operational execution has remained strong. Vehicle deliveries in Q3FY26 rose 37% year-on-year to 385 units, compared with 282 units in the corresponding quarter last year. Revenues grew 30%, while EBITDA increased 17%, reflecting operating leverage and improved scale.
The company retained its No. 1 position in the electric bus segment, with a 29% market share in Q3, based on 399 vehicle registrations. On a year-to-date basis, Olectra has registered 912 vehicles, translating into a market share of over 24%.
EBITDA margins stood at 14.1%, among the highest in the electric vehicle industry, underscoring the company’s focus on profitable growth. Management reiterated that the core priority remains consistent quarter-on-quarter deliveries with sustained profitability.
For FY26, Olectra has set an ambitious delivery target of up to 2,000 vehicles, with management guiding towards a realistic range of 1,500–2,000 units, depending on market absorption, ecosystem readiness and capacity ramp-up.