Olectra Greentech Secures ₹1,800 Cr Order for 1,085 Electric Buses from Telangana

Olectra Greentech Limited has announced a significant order win valued at approximately ₹1,800.00 crore for 1,085 electric buses from the Telangana State Road Transport Corporation (TGSRTC), to be supplied via Evey Trans Private Limited (EVEY).

Reader Takeaway: Order boosts long-term revenue visibility; related party transaction structure warrants monitoring.

What just happened (today’s filing)

Olectra Greentech Limited has secured two Letters of Award (LOAs) from the Telangana State Road Transport Corporation (TGSRTC) through its subsidiary, Evey Trans Private Limited (EVEY).

The contract is for the supply, operation, and maintenance of 1,085 electric buses, comprising 1,025 Non-AC and 60 AC variants, all 12-meter long.

Valued at approximately ₹1,800.00 crore for Olectra, the deal is structured under a Gross Cost Contract (GCC) / OPEX model for a duration of 12 years.

EVEY will procure these buses from Olectra, with deliveries scheduled to occur over a period of 20 months.

Why this matters

This large order significantly enhances Olectra Greentech's order book and provides substantial long-term revenue visibility through the 12-year operational contract.

It reinforces the company's position as a key player in India's rapidly expanding electric bus market and its expertise in the OPEX model.

The expansion into supplying and operating a large fleet indicates a strengthening of Olectra's service-based revenue streams beyond just manufacturing.

The backstory (grounded)

Olectra Greentech is a pioneer in India's electric mobility sector, known for its electric buses and composite insulators.

Its business model heavily relies on Gross Cost Contracts (GCC) or OPEX, where it finances, owns, operates, and maintains fleets for state transport undertakings over extended periods, typically 12 years.

The company has a track record of securing substantial orders, including a ₹4,000 crore deal for 2,400 buses from BEST (Mumbai) and a ₹10,000 crore order for 5,150 buses from MSRTC (Maharashtra), both executed through EVEY.

Olectra has also been scaling up its manufacturing capabilities, with its new greenfield EV facility in Hyderabad commencing Phase-I operations, capable of producing 2,500 electric buses annually.

What changes now

Olectra Greentech's order book receives a significant boost, enhancing financial predictability for the next decade.

The company's revenue streams diversify further into operations and maintenance, alongside manufacturing.

Its market presence in Telangana is strengthened, positioning it for future opportunities in the state and across India.

The execution of this large-scale OPEX contract will provide valuable operational experience and potentially drive economies of scale.

Risks to watch

Transactions between Olectra Greentech and EVEY are classified as related party transactions. While the company states these will be conducted on an arm's length basis, this structure requires continued monitoring for transparency and fairness.

The success and profitability of the long-term OPEX model depend on efficient operations, effective maintenance, and management of costs over the 12-year contract period.

Peer comparison

Olectra Greentech competes with major players like Tata Motors, which leads in electric bus registrations. Ashok Leyland, through its subsidiary Switch Mobility, is expanding its EV bus production capacity. PMI Electro Mobility has emerged as the largest seller of electric buses in FY26 so far, showcasing strong order execution capabilities. JBM Auto is also a significant competitor in this space.

Context metrics (time-bound)

• Not applicable.

What to track next

Monitor the timely delivery and operational performance of the 1,085 electric buses over the 20-month delivery period.

Closely observe the management of the related party transactions with EVEY to ensure they remain at arm's length.

Track Olectra's ability to maintain profitability and operational efficiency throughout the 12-year GCC contract.

Look out for future large-scale order wins, especially those involving OPEX models, as the Indian EV bus market continues to grow.