Olectra Greentech targets 2,000 FY26 e-bus deliveries

Order book visibility and new platforms

Olectra Greentech Ltd (OGL) says it has a “very good order book in hand” as it prepares for a bigger scale-up in electric bus production and delivery. The company is also investing in two new platforms, one focused on buses and another on trucks, indicating a broader push within electric commercial vehicles (CVs). Management has flagged that both platforms under development are being designed for battery swapping as well as megawatt charging. That combination is relevant as operators look for faster turnaround times and higher uptime for fleet operations.

Olectra, which is often described as a pioneer in electric bus manufacturing in India and also operates in insulators, is positioning itself to participate in a multi-year replacement cycle of diesel buses. Managing Director Mahesh Babu Subramanian said the CV industry is likely to see substantial change, and he expects 50% of buses to convert to electric by 2035. While that is a forward-looking view, his near-term commentary was centred on tender activity, capacity readiness, and execution.

Government tenders shape the near-term opportunity

A major theme in Olectra’s updates is the volume of public-sector demand flowing through central and state tenders. Subramanian referenced the CESL tender of 6,200 vehicles that was open at the time of his remarks, on top of a 10,000-vehicle tender that had come earlier. He said Olectra won about 1,785 vehicles under that tender.

In another update linked to the PM E-Drive scheme, the MD confirmed the company’s eligibility for around 1,785 vehicles under a major tender for 10,900 electric buses. Separately, he also pointed to upcoming opportunities, including a CESL tender referenced at 7,000 vehicles, and said the PM e-Seva tender was likely to be expected in the coming months.

The company’s argument is that tender visibility, combined with manufacturing scale and ecosystem readiness, will decide how quickly deliveries can be executed over the next 18 to 24 months.

Telangana LoI: 1,085 e-buses for Hyderabad

Olectra Greentech said it has secured a letter of intent (LoI) for 1,085 electric buses from the Telangana State Road Transport Corporation (TGSRTC) under the PM E-drive initiative. The company described it as one of the largest electric bus deployments planned for Hyderabad.

The LoI adds to a broader order book that management has described in multiple ways across interactions. Olectra stated it has deployed over 3,600 electric vehicles across the country and has an order book exceeding 10,000 vehicles. In another instance, management referred to an existing order book exceeding 8,000 vehicles. The company has also spoken of a “very healthy pipeline” of 10,000-plus orders, with deliveries planned over 18 to 24 months.

FY26 deliveries and EV segment growth

On operating performance, the company highlighted higher operating capacity and changes in product mix as it scales. It also reported a rise in EV segment vehicle deliveries to 1,280 units during FY26, compared with 972 units in FY25, representing a 32% growth.

Subramanian also pointed to broader market indicators. He said India has about 16,000 electric buses already deployed, and that the electric commercial vehicle segment has grown about 120% year on year. These numbers underline why fleet operators and state transport undertakings (STUs) are increasingly evaluating electric buses, particularly when policy support and tender funding align.

Capacity expansion: Phase One operational, ramp-up underway

Olectra said Phase One of its expanded manufacturing facility has fully commenced operations. Subramanian stated the plant can produce approximately 2,500 electric buses per shift, with the option to move to two shifts and reach around 5,000 units annually.

He added that the expansion to higher levels will be demand-driven, with the company planning to optimise Phase One before scaling further. Management said the facility’s infrastructure is built to support much higher volumes, but higher output would require additional equipment, manpower, and minor setup adjustments.

Subramanian also noted that the second phase of capacity is being built and is expected to be ready by March-end of the year, allowing production of about 5,000 buses in a single shift and leading to an industry-scale capacity of around 10,000 by FY28.

How many buses can be delivered in 2026?

On delivery guidance, management offered multiple checkpoints tied to market absorption and operational readiness. The MD said the company would be able to finish between 1,500 and 2,000 buses, and separately called 2,000 vehicles an “ambitious target”. He also indicated that deliveries depend on market absorption, manufacturing capacity, and ecosystem development.

In another update, Olectra said it anticipates delivering between 3,000 (a conservative estimate) and potentially over 5,000 buses in calendar year 2026, contingent on timely depot readiness. Subramanian also stated that “as long as the market can absorb 10,000-plus vehicles,” the company can achieve that in the coming financial year, framing it as a function of market size, depot readiness, and financing.

Ecosystem constraints: depots, power, routes, and financing

Olectra repeatedly stressed that manufacturing capacity alone will not determine adoption, especially in buses. Management listed charging infrastructure, power availability, depot readiness, STU route finalisation, and financing availability as key dependencies.

Subramanian also gave a market-size reference to frame absorption. He said the electric bus market size last year was about 3,800 vehicles, suggesting that even with higher factory capacity, the pace of deliveries will be gated by how quickly STUs and cities make depots ready and finalise routes.

EV CV strategy: buses, trucks, and electric tippers

Beyond buses, Olectra’s commentary indicates a broader electric CV strategy. The company is developing two new platforms, one for buses and one for trucks, with battery swapping and megawatt charging capabilities built in. Subramanian has also discussed expansion into electric tippers as part of a broader EV commercial vehicle play.

The message is that Olectra wants to participate across multiple commercial EV applications, while keeping buses as the anchor segment driven by public tenders.

Key numbers at a glance

Market impact and what investors track next

For the market, the near-term focus is less about headline tender sizes and more about conversion to firm orders, depot readiness, and delivery cadence. The TGSRTC LoI and eligibility under large central tenders increase visibility, but execution will depend on infrastructure and STU preparedness, as management itself acknowledged.

Investors are also likely to track utilisation levels. Subramanian said the company was operating at about 70% to 80% utilisation after ramp-up began, indicating that output growth may be progressively realised as manufacturing stabilises and new capacity comes online.

Conclusion

Olectra Greentech is attempting to align three moving parts: a large public tender pipeline, a ramp-up in Hyderabad manufacturing capacity, and ecosystem readiness across depots and charging. The company’s stated targets range from 1,500 to 2,000 buses in the near term, while it builds toward higher capacity levels over time. The next major checkpoints will be tender outcomes, progress on Phase Two by March-end, and how quickly STUs complete depot and route readiness for large-scale deployments.