Olectra Greentech share price plummeted by over 12% intraday on Tuesday, May 27, 2025, following an announcement by Maharashtra’s Transport Minister, Pratap Sarnaik, about the cancellation of a significant electric bus tender. The decision stemmed from the company’s failure to meet delivery deadlines, causing a ripple effect in the stock market and raising questions about Olectra’s role in India’s electric vehicle (EV) public transport sector.
Reasons Behind the Tender Cancellation
The Maharashtra State Road Transport Corporation (MSRTC) had set a final deadline of May 22, 2025, for Olectra Greentech to deliver 1,000 electric buses as part of a contract to supply 5,150 leased e-buses. According to Minister Sarnaik’s statement on the social media platform X, the company failed to deliver even a single bus by the deadline. This led to a high-level meeting on Monday evening, where MSRTC officials decided to terminate the contract due to the company’s “inactivity” and non-compliance with delivery obligations, directly impacting the Olectra Greentech share price.
The lack of an official response from Olectra has left investors uncertain, further fueling concerns about the company’s ability to handle large-scale EV projects.
Olectra’s Contract Background and Challenges
Olectra Greentech, through its subsidiary EveyTrans Pvt Ltd, secured a contract in May 2022 to supply 2,100 electric buses to the Brihanmumbai Electricity Supply and Transport Undertaking (BEST) under a wet lease model, which includes providing buses, drivers, and maintenance services. However, only 536 buses have been delivered to date, far below the target. Additionally, in April 2024, Olectra was awarded another contract to supply 2,400 electric buses, but the recent cancellation has put its delivery capabilities under intense scrutiny, contributing to the decline in the Olectra Greentech share price.
The company’s struggles to meet deadlines have raised doubts about its ability to scale operations, a critical factor for maintaining investor confidence in the competitive EV market.
Market Reaction and Share Price Volatility
The Olectra Greentech share price opened at ₹1,234.95 on the Bombay Stock Exchange (BSE) on Tuesday but quickly fell to an intraday low of ₹1,180 as the news of the tender cancellation spread. The stock briefly touched a high of ₹1,288 before the sell-off intensified, reflecting the market’s sensitivity to negative developments in the EV sector.
Despite the sharp drop in the Olectra Greentech share price, some analysts remain cautiously optimistic. Anshul Jain, Head of Research at Lakshmishree Investments, noted that the stock is forming a bullish 40-day cup and handle pattern, with a key support level at ₹1,253. He predicts that a breakout above ₹1,315 could drive the Olectra Greentech share price toward ₹1,518 in the near term, provided the company can address investor concerns and stabilize its operations.
Investor Sentiment: Weighing Risks and Opportunities
The cancellation of the Maharashtra e-bus tender has significantly dented Olectra Greentech’s credibility, raising concerns about its ability to execute existing contracts and deliver on time. Investors are particularly frustrated by the company’s lack of communication, as no official statement has been issued to address the situation or outline a recovery plan. This uncertainty has kept the Olectra Greentech share price volatile.
However, long-term investors remain hopeful, given Olectra’s established position in the EV bus segment and its history of securing large orders. The company plays a vital role in India’s push for sustainable public transport, but it must overcome its operational challenges to regain trust.
The Road Ahead for Olectra Greentech
The focus now shifts to Olectra’s response to this setback. Will MSRTC re-tender the cancelled order, and can Olectra provide a clear plan to meet its delivery commitments? The 2,400-bus order secured in April 2024 is also at risk, as further delays could lead to additional contract cancellations and further pressure on the Olectra Greentech share price.
India’s transition to electric mobility depends heavily on companies like Olectra to deliver reliable and scalable solutions. Meeting project timelines is now a critical requirement in this competitive space, and Olectra must act swiftly to address these challenges and rebuild confidence among investors and stakeholders.
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For now, the market awaits an official statement from Olectra or EveyTrans, which could significantly influence the future trajectory of the Olectra Greentech share price. Until then, investors are likely to remain cautious as they navigate the risks and opportunities in India’s rapidly evolving EV landscape.
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