Olectra Greentech shares fell by as much as fourteen per cent to Rs 1,160 on 27th May after the Maharashtra government cancelled a Rs 100 billion electric bus contract. The Transport Minister, Pratap Sarnaik, stated the company had not delivered a single bus from the one thousand due by 22nd May.

The contract, awarded in July 2023 to a consortium of Olectra and Evey Trans Pvt Ltd, spanned twelve years and covered 5,150 electric buses. Evey was to procure the buses and deliver them to the Maharashtra State Road Transport Corporation, while Olectra would maintain the fleet.

Sarnaik made the announcement on social media following a review at MSRTC headquarters. He said the supplier had shown no progress despite a revised timeline. Though the company was not named directly, officials were directed to cancel the tender.

Olectra has not issued an official response. The news comes despite strong March quarter results, where revenue rose fifty-eight per cent, net profit doubled, and EBITDA increased by seventy per cent. Shares traded at Rs 1,266 by 9:30 AM, down six per cent.

Source: Moneycontrol