Olectra Greentech Share Price Plunges 12% After Maharashtra’s EV Bus Bombshell — What Went Wrong?

Shares of Olectra Greentech Ltd, an electric bus manufacturer promoted by Megha Engineering and Infrastructure, witnessed a sharp fall in Tuesday's early trade.

The stock plummeted over 12% on the BSE, reacting to Maharashtra Transport Minister Pratap Baburao Sarnaik's directive to cancel a significant electric bus contract awarded to the company, citing delivery delays.

Minister Alleges Missed Deadlines, Orders Tender Cancellation
On Monday evening, following a high-level meeting at the Maharashtra State Road Transport Corporation (MSRTC) headquarters, Minister Sarnaik instructed officials to annul the tender awarded to Olectra for supplying 5,150 electric buses on lease. The minister claimed that despite being given a fresh deadline to deliver 1,000 buses by May 22, the company had “not delivered a single bus.”

Taking to social media platform X (formerly Twitter), Sarnaik wrote:
“The company responsible for supplying 5150 electric buses on a rental basis has been found inactive, and instructions were given during the meeting to take action to cancel the tender agreement with this company. A meeting was held today at the ST Corporation headquarters on various issues..”
 

Although Sarnaik did not name Olectra Greentech directly in his post, reports confirm the comments were directed at the EV manufacturer.

Olectra Greentech Share Price Today

The fallout from the minister's statement was immediate on Dalal Street. On the BSE, the stock opened at Rs 1,234.95, plunged to an intraday low of Rs 1,180.00, and was trading at Rs 1,270.00, down 75.35 or 5.60%, at 10:13 AM.

On the NSE, the stock opened even lower at Rs 1,160.10, hitting the same low and mirroring the price and percentage drop as seen on the BSE.

The stock’s previous close was Rs 1,345.35, highlighting the sharp reaction from investors spooked by potential financial and operational fallout.

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No Official Statement from Olectra Yet
As of now, Olectra Greentech has not issued an official response to the cancellation call. 

Olectra Greentech Q4 Results FY25 
Ironically, the negative news came just a day after the company reported robust Q4 FY25 results. The company posted a 39% year-on-year (YoY) rise in profit after tax (PAT) at Rs 20.69 crore, compared to Rs 14.89 crore in the year-ago quarter. Revenue also rose 55% YoY to RS 448.92 crore.
The board recommended a final dividend of Rs 0.40 per equity share (face value Rs 4) for FY25, subject to shareholder approval at the upcoming Annual General Meeting.
 

Olectra Share Price History
Over the long term, Olectra Greentech's share price has delivered impressive returns to investors, though recent performance has been mixed. The stock has surged by a staggering 8,359.97% over the last 10 years and gained 2,178.80% in the past 5 years, reflecting strong investor interest in India's electric vehicle (EV) transition. In the last 3 years, the stock rose 122.76%, but it has faced headwinds more recently. 
 

Over the past year, the stock declined by 29.89%, and it dropped 19.30% in the last six months. Still, signs of short-term recovery were evident, with a 12.68% gain over the last 3 months, 5.09% in the last month, and a marginal 0.29% increase in the past week. This historical trajectory underscores both the high-growth potential and volatility associated with Olectra’s stock.