Olectra Greentech Slumps Up to 14% After Minister Calls for Bus Tender Cancellation

Shares of Olectra Greentech fell as much as 14% to ₹1,160 on May 27 after Maharashtra Transport Minister Pratap Sarnaik called for cancelling the company’s electric bus order due to missed delivery deadlines. Sarnaik stated that not a single bus from the 1,000 due by May 22 had been delivered, prompting a directive to cancel a larger tender for 5,150 buses. The ₹10,000 crore, 12-year contract—awarded in July 2023 to a consortium of Olectra and Evey Trans—required Olectra to supply and maintain the buses for MSRTC. Despite a revised timeline, the project showed no progress. The selloff came despite strong Q4 results: revenue rose 58% YoY, net profit doubled, and EBITDA jumped 70%. The company is expected to address the situation during its analyst call on May 28. As of 9:30 AM, the stock was down 6% at ₹1,266. It remains up 13% over the past month but is down 9.2% year-to-date.