Please note that this conference is being recorded. I now hand the conference over to Mr. Amar Gaur from Axis Capital. Thank you, and over to you, sir.
Thank you, Steve. Good evening, Everyone. On behalf of Axis Capital, I welcome you all to the Q4 and FY25 post-results conference call of Olectra Greentech Limited. From the management team, we have with us today Mr. B. Sharat Chandra, CFO, Mr. P. Hanuman Prasad, Company Secretary and Compliance Officer, along with teammates from Finance and Strategy. I will hand over the call to Mr. B. Sharat Chandra for his opening remarks, post which we can have a Q&A. Over to you, Mr. Sharat Chandra.
Yeah, thank you, Amar. Good evening and a very warm welcome to all of you who have joined today for the Olectra Greentech Limited earnings call for the quarter four, 2024, 2025. We are taking as read the presentation which is put on our website along with a safe harbor statement thereon. We are pleased to state that the company showed strong growth in consolidated revenue and profitability for Q4 and full year. We have delivered 2,718 electric vehicles, which includes 2,667 electric buses till 31st March 2025. Now, let me summarize some of the key highlights before we drill into the financial performance. Olectra buses have successfully covered more than 40 crore kilometers across the length and breadth of the country. In terms of deliveries, the year has been challenging for the company. In fact, the whole industry had a challenging last year.
Despite this, for the financial year 2025, Olectra with deliveries of 972 electric buses has been a leading performer and ranks in the top two in terms of total deliveries in financial year 2025. We are completely focused on addressing the challenges and will be striving to reach number one position in financial year 2026. As you are all aware, it is no longer a demand constraint, and strong demand continues with the company's net order book at 10,000 plus as of 31st March 2025. To recap, notably, we unveiled our latest technology advancement, the Blade Battery technology at the Bharat Mobility Global Expo 2025. With its cutting-edge design and exceptional energy density, the Blade Battery promises not only longer ranges but also the faster charging time, ultimately enhancing the performance, safety, and reliability.
Our focus continues on increasing our manufacturing capacity and enhancing our technology capabilities, and we are constantly striving and exploring new ways to improvise, innovate, and push the boundaries of what is possible in the electric mobility industry, setting new benchmarks for the future. Now, let me take you through the financial highlights for the quarter four on a consolidated basis, followed by that for the full financial year. revenue for the fourth quarter stood at INR 448.92 crores, a strong 55% growth over the last year. This was entirely led by volume growth. About 219 buses were delivered in Q4 versus 131 in last year. We had an impressive EBITDA of INR 58.35 crores against INR 42.84 crores in the prEVious year's same quarter, marking a substantial growth of 36%. The PBT surge to INR 29.25 crores, a remarkable 45% increase from the prEVious fiscal 20.11 crores.
The PAT for Q4 stood at 20.69 crores, up by 39% compared to prEVious fiscal 14.89 crores. Moving to the financial performance for the full year, the revenue for FY25 stood at 1,801.9 crores, up by 56%. EBITDA for full year stood at 276.32 crores, marking a substantial 49% increase compared to the prEVious fiscal of 185.851 crores. PBT surged to 187.88 crores, a remarkable jump of 78% versus prEVious fiscal 105.78 crores. PAT for full year stands at 139.21 crores, up by 77% compared to prEVious fiscal 78.65 crores. Moving to working capital, we are pleased to share that our net working capital days as of 31st March was about 60 days, showing a reduction of almost 54 days, mainly due to improved collections of receivables and lower inventory days. Thank you, and over to the Axis team for the Q&A.
Thank you very much, sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Khush Gosrani from InCred. Please go ahead.
Yeah, hi, sir. Hope I'm audible. Firstly, sir, I wanted to understand we have delivered 219 buses, but the Vahan data shows only registration of 181 buses. So how many days' lag is there between your deliveries and the data getting reported to Vahan as per your information? Hello. Hello.
Hello.
Hello?
Yeah, I'm audible.
So now, is it audible?
Yeah, yeah, yes, sir.
Got it. Okay. So basically, we have clarified this query in earlier quarters also, but we would like to re-clarify. Being an OEM, Olectra's responsibility is to deliver the buses to our customers at our factory gate. It is export sale. Once they are delivered, the registration and other regulatory process has to be complied by the bus owner. This lead time is completely thought could be a reason for the delay, and generally, it takes about maybe around one month, one and a half months to complete the process.
Got it, sir.
Secondly, sir, we had guided earlier that we might be able to reach 2,500 buses in FY26. So since there are industry challenges we are facing, would we like to rEVise that guidance?
For next year, we are looking at around 2,000 numbers. We are looking at around 2,000 numbers, though we are striving for 2,500. We'll continue to monitor, and then we are, as I mentioned in the initial remarks, we are focusing and trying to address the challenges. We will keep the target or guidance between 2,000 to 2,500 numbers.
Got it, sir.
And last question from my side. Any clarification you would like to provide regarding the news articles that have been posting since yesterday regarding the order cancellation?
Yeah. See, I would just give it to our Company Secretary to complete the query.
Hi. I think you would have referred our yesterday's clarification. We haven't received any communication on that part, which is appearing in the social media. I think we have clarified properly to the stock exchanges. We would have read through.
Okay. Got it. Got it. Thank you.
Thank you. The next question is from the line of Gaurang from Utility Unified . Please go ahead.
Hello. Hi. I'm audible?
Yeah,
yes, sir, you are.
Yeah. Just wanted an update on the automation part in the factory. Have we placed orders for the robots?
Yes. We have successfully negotiated and finalized our orders and placed the orders.
Okay. May I know which company that you've sourced this to?
We are trying to source the top brand. I think my FANUC, right?
So. I'll just give it to our colleague.
Currently, it is under designing phase, and we are procuring the robots from FANUC as well as from KUKA and all the world leaders of robot manufacturers.
And when is it expected to leave the factories and get installed?
We are planning to commence the commercial production using this robotics welding by the end of this financial year.
So in that case, we would be left with the same quantity that we delivered this year, which would be around 1,000-1,500? Because manually, we could only make those many buses, right?
Yeah. See, basically, this is the second additional phase which we are going for roboticss. The current body shop, which we have already started manufacturing, it has got current capacity of about 200 buses, which is getting expanded to about 5,000 buses. 200 buses getting converted into 400 buses in the next three, four months, so basically, currently, we operate on a single shift. We can make it into a double shift and then achiEVe this number. Once we go to robotics, our capacity enhances.
Okay. And as you said, we would be delivering around 2,000-2,500 numbers this year. But if you see, the backlog is quite sEVere. We have orders of, I think, more than 4,500 with BEST pending and another 5,000 with MSRTC, which we have to deliver in the next, I beliEVe, 18 months. So how will it be possible to honor both these commitments if we are able to only deliver 2,000?
See, once we start making the automatic robotics in quarter four, the next financial year, we'll be ramping up the production and will be able to meet the deliveries. So as I mentioned in the initial remarks, the industry has been facing the challenges with regard to supply. And we are working very closely, monitoring very closely, and trying to address the challenges. So see, this is, as I think I've mentioned, it is no longer a demand constraint. Supply is the main issue with regard to the total industry at large. So we are addressing that. And if you look at, I think, the total addressable market, it is going to be quite significant in terms of conversion of the ICE engine buses to EVs and other clean technology buses. So none of the companies have the capacity to meet those demands as of now.
Our target is to achiEVe 2,000 numbers definitely and try to extend to more than that. That is the reason we are giving a range of 2,000-2,500 numbers. This is conservative guidance as of now. As we progress during the course of the year, we'll be able to address this number.
Okay. And one more last question. As our Company Secretary said that we have not received any notice from MSRTC, but in an event that we receive a notice, say, within two or three days, or if Every Trans receives those notices, so how do we plan to respond to them? Are we going to negotiate some timelines with them, or what's the internal plan as of now with the company?
Gaurang.
Gaurang, yeah.
Yeah. Mr. Gaurang, Hanuman here.
Yeah.
I think this MSRTC order, we have a delivery timeline as per the agreement till May 2026. We are not expecting any such kind of events would happen. If such kind of notices if we receive, obviously, properly in terms of the agreement, we will see that next course of action.
So I beliEVe we are optimistic that this particular order is not going to get canceled. Is it so?
Yes. Yes.
Oh, okay. Thank you for the answer. Yeah, that's it from my end. Wish you all the best.
Thank you.
Thank you. The next question is from the line of Shaurya Purani from Arjav Partners. Please go ahead.
Hi, sir. Am I audible?
Yes, sir. You are.
Yes.
Sir, are we facing any battery supply chain issue or any supply chain issue of some sort?
In fact, the entire industry has been going through the challenges of supply constraints with regard to components relating to chassis and battery. There have been delays, so that is the only issue.
By what time do we expect some sort of normalization?
We expect the Q1 to be in line. As far as Olectra is concerned, the Q1 numbers will be in line with Q4. We expect the normalization to happen from Q2 onwards.
Q2 onwards. Okay. Q2 normalization. Okay. And sir, what has been the order inflow for the current year, for FY25?
So FY25, actually, as of now, the new tenders which are in the anvil, the PM eBus Sewa is about 10,000 buses is in the immediate visibility, followed by MTC about 600 numbers. CRUT, which is Odisha, is about 200 numbers. Goa is about 50 numbers.
Odisha is?
AP is about 200 numbers. Tender has been promoted.
AP? Okay.
So AP and others about 3,000 buses is what is the visibility. So totally about 10,000 numbers from PM-eBus Sewa, which I've already mentioned. So these are the tenders which are in the pipeline.
Okay.
We are all aware. Yeah, yeah. See, basically, the Ministry of Heavy Industries and then the government has announced earlier to replace about 8 lakh buses. The demand continues, and the demand for EV buses is basically exploding. We have to address the supply chain.
So how many orders did we actually get in FY25, if you have that number? Did we actually get?
We have received orders, but it is all from private parties. Microsoft, we have received about 50 numbers. And HRTC is the biggest order, I think I forgot to mention. So HRTC, in terms of outright sale, we have recently bagged about 297 buses, electric buses, where we are going to sell on an outright basis. We have timelines of about till March 26 to deliver these buses.
Okay. Till March 31st. Okay.
Yeah.
And, sir, one final question. One final question. Regarding that new capacity from 5,000 to 10,000, so by what time we are expecting it?
See, basically, to start with, our capacity is getting enhanced to 5,000 numbers. And based on the demand and supply situation, we can enhance it. Maybe in one year's time, we can enhance to 10,000 numbers. Because Civil is geared to cater to 10,000 numbers. What we need to add is the additional balancing equipment to enhance from 5,000 to 10,000 numbers.
Okay. So we don't have a definite timeline. As and when we can, we can do that, you are saying?
We will take it gradually, monitor the supplies, and then accordingly, we can take a call. Our philosophy has been to basically not to invest too much into CapEx. We have been conservative, and based on the order execution, we've been in a position to enhance the CapEx.
Based on all that. Okay, sir. That's it from my side. Thank you.
The next question is from the line of Sameer from Alturas. Please go ahead.
Hi. I have a couple of questions. It's very well understood that the current situation of supply is a challenge. I just wanted to understand from a contextual basis, is the industry going through this challenge? And do you have any data to kind of substantiate that the industry is going through this supply challenge this year, last year? If you could throw some data around that. And secondly, the government has ambitious plans of converting about 800,000 buses in the next five years or so into EV or clean technology. How does the industry think about meeting this demand that is there?
I mean, at the end of the day, even if in 24 months your capacity is 10,000 buses, and let's say the industry capacity is around 50,000 buses a year, it still doesn't meet the challenge, meet the ambitious target that the government has set in front of themselves. So one is on capacity, and second is on financing. Is there an impediment on financing or on payment guarantee mechanisms or so on and so forth? Something on these lines would be helpful.
Yeah. Regarding your question number one, we have basically public data as far as the Vahan portal is concerned. Again, it is not very accurate because some of the states are not covered, and there's a time lag between delivery and registrations. But still, looking at the data about last year, about 2,258 numbers have been registered for the entire financial year. So that shows that the supplies obviously have been challenged and have been challenging in terms of overall numbers. And Olectra, as I mentioned earlier, we are a top performer in terms of ranking in the top two. Okay. As far as that is the first question is concerned. Second is, as you rightly said, currently, the industry is having a capacity constraint. So our Olectra is ambitious. We have a plan to enhance it to 10,000 numbers.
Based on how it pans out, we would definitely explore possibilities of enhancing the capacities. And as far as the financing is concerned, there have been challenges initially. But if you look at the last three major orders which we have secured EV Trans, we have financial closures done by the institutions. And the institutions are coming forward to complete the financial closures, which we faced initially. It was taking a lot of time to convince the institutions. But with all the three major contracts, we're about almost close to about INR 20,000 crores where the financial closures are in place. So I am only assuming that with government supporting the EV adoption in a big way, the financing will improve.
Understood. I think in context, yes. In context, I think Olectra numbers continue to show growth. I think the expectations are high, and I think so because you've been an industry leader. But in context, is it fair to assume that even in an eventuality where MSRTC cancels the order, there are not competing suppliers who can fulfill the orders in the timeline that they require? Is it fair to assume that?
I think you are right. Yes, you can assume. And so obviously, everybody has got capacity constraints. And our product, as you rightly said, has got an edge in terms of technology and in terms of performance over the competition. So we hope, as Hanuman has clarified to earlier queries, we are optimistic that there will not be any negative impact on account of this.
Thank you. I think that answers my question. Thank you so much.
Thanks. Thank you a lot.
Thank you. Participants who wish to ask a question may press star and one. The next question is from the line of Neeral Shah, an individual investor. Please go ahead.
Hi. This is Neeral. Am I audible?
Yes, sir. You are.
Yeah. Yes.
Thank you. First, I want to thank the CFO and the entire team for what you guys are doing. I've been following Olectra, so just a little bit, 30 seconds I'll take. The first time I sat in your bus was in 2018, in January somewhere, and I was fortunately in India. And I happened to sit in one of the Olectra buses, which is one of the six buses that you had delivered to Mumbai BEST. And since then, I've been following the company. So it's been a tremendous journey. And the product is amazing. So great work on that one. A couple of questions on this one. From what I've been hearing, FY26, you expect to deliver anywhere between 2,000 to 2,500 buses. But you have a delivery to MSRTC for about 5,000 buses by FY26.
You also have HRTC buses, about 297 orders, all by March 26. Given the supply constraints, how do you envision to fulfill both the orders and the timelines? Is there a possibility of extension? That would be my first question, please.
Yeah. See, as far as our target, because of the challenges which the industry is facing, we are keeping a conservative target of between 2,000 to 2,500 numbers. And we are confident of fulfilling HRTC 297 buses before March end. And so far as MSRTC is concerned, we have a plan to complete the deliveries by the following financial year.
And will that include any extensions from MSRTC? Because if you go to FY27, will that include any extensions from MSRTC? And what would be the composition? I mean, the existing Olectra technology or the Blade technology? Which ones are you offering? And are there any negotiations happening on that front as well, please?
See, as far as Olectra is concerned, it's a business call to use the new technology or continue with the existing technology. So it's nothing to do with MSRTC. Okay. So we will explore how it pans out because the new technology, as you are aware, it is in homologation phase. It takes time for the certification. We are hopeful by this maybe Q3 or Q4, we will have the homologation in place for the new technology, which is Blade Battery technology. So it could be a mix of both, or it could be old. So it's a call we will take as we move forward.
Is there variation in the pricing between the existing technology versus the Blade, assuming the homologation happens? Or you have not even reached that stage of the pricing stage of it?
As of now, we have not reached that stage of pricing. But the only thing in terms of efficiency, this is 30% better in terms of lightweight batteries, as well as in terms of the efficiencies, mileage. So overall scheme of things, the costing is all still not yet finalized. So hopefully, once we have more clarity, we will rEVert back in appropriate time. We will make necessary disclosures.
Thank you so much. And one last question, if you may want to answer. The launch of the Rebar, the precast ones that you guys have ventured into, any negotiations or anything that have started, or what is the plan on that front? That's a completely new thing that Olectra has ventured into.
I'd like to request my colleague Hanuman to clarify.
I think, Neeral ji, right now, we are in the process of getting required approvals. Once we have placed in all approvals, maybe appropriate time, we can be able to rEVert. As of now, we are at the stage of procuring the approvals.
Thank you so much and keep up the great work. Thank you so much, guys.
Thank you so much.
Thank you.
Thanks a lot.
Thank you. The next question is from the line of Akash Srivastava from HNI. Please go ahead.
Yeah. Hi, Everyone. Good evening. Am I audible?
Yeah.
Yes, sir. You are.
Yeah. So hi, this is Akash. I just want to understand what is the reason for the big interim performance, Q3 versus Q4. This is my first question because I think no one else is asking about this. The second question is, I want to understand. I've been following this particular company from last 10 to 15 quarters. And every quarter, you are giving some estimate, and you are saying that this is a conservative estimate, and still you are not able to meet that. So can you just clarify if you're giving a conservative estimate? Why you are not able to meet this?
Yeah. See, Mr. Akash, I have clarified in the initial remarks itself. If you look at the deliveries for the entire year by the entire industry, so you can understand from that number what kind of challenges the industry is facing. So obviously, we have been conservatively estimating the number. We are addressing the challenges and hopeful of resolution. That is the reason we are giving a conservative number of 2,000 buses for financial year 2026. And as far as Q4 versus Q3 is concerned, obviously, because of the supply constraints and challenges, the numbers we could deliver less than Q3.
But this is happening every time. Last quarter, you said that Q4 will be at least 300-400 numbers so that you can meet this 1,500 target, if I'm not wrong. Still, you have delivered only 219, right? Which is, I mean, in terms of percentage, if you see, it's very less. And then now, I remember prEVious to prEVious con call, you said that FY26 will be 5,000 number. Now you're saying FY26 will be 2,000 number. So every quarter, you are just downgrading your estimates. So I mean, I can understand there are challenges, but then you should give this particular estimate, which is actually conservative, right? And you should not overestimate something, and then you say that it is conservative.
And then investors keep on high hopes on you, saying that, "Okay, you have committed these particular things in your con call," and then still you are not able to achiEVe.
Mr. Akash, we appreciate that the company has been showing significant growth, both in terms of top line and bottom line. Obviously, when we are doing business, we would like to register significant growth compared to earlier years, and we would like to basically contribute to all the stakeholders. So we are ramping up the production capacities in the new facilities, and we are confident that whatever constraints are there will be behind us, and we will be able to deliver the numbers what we have given guidance. So we always would like to strive to achiEVe the guidance what we have given. But because of the constraints which, as a company, we have been facing and as the industry is facing, we have been a little lagging behind.
But nEVertheless, despite that, our performance, if you see, consistently year on year, we have shown growth with a CAGR growth of about almost 50% in terms of last four years. So in terms of if you look at the one minute, I'll just tell. Sorry. So top line, CAGR growth of 45% from financial year 2022 to 2025, adjusted EBITDA growth of 106%, and CAGR PAT growth of 58%. From 259 numbers in financial year 2022, we have delivered 972 numbers. Of course, we are behind what numbers we have given guidance by about 10%-15%. We are behind because these are the reasons of constraints. But if you see, both electric bus division and insulator division's operating margins have been growing year on year. So we are optimistic that whatever numbers we are giving as conservative, we would like to strive and achiEVe those numbers.
That is okay. I'm invested heavily in Olectra. At least from my point of view, so I just wanted to be sure that my decision is correct. Just two points. These are not questions, but I just hope that these are being taken care of. So one article that I read in a website called EV Insider, wherein it was saying that there is some point of contention between BYD and the Olectra management, and that is the reason they are choking up your supply. Though you might have or you might deny it right now, but I'm just hoping this article is not correct. And this is not the reason of the supply being choked up. No need to answer. I'm just clarifying what I have read in the article.
The second is, even though you might anticipate and you might be optimistic that there won't be any other cancellation, but I just hope that you guys must reach out to the minister or the MSRTC, put forward your point of view, and then reach to a safe negotiation wherein there is no such eventful event wherein the orders get canceled, even though you might anticipate that it won't cancel. But I will just request that you guys reach out to the respective authority, convey your points, and just hope that they take the decision which is in favor of Olectra. That's it from my side. Thank you so much.
Thanks. Thank you.
The next question is from the line of Rishabh, an individual investor. Please go ahead.
Thank you for giving the time to take these questions. I was just going to talk the question which I think you just covered earlier. Is there any disruption between BYD and Olectra management? While you keep saying there are supply constraints, we love a technical answer here that what are the constraints? Are batteries not coming? What components are not coming? I think having a technical person on call would increase credibility. I mean, I'm sure we understand the constraints, but just hearing supply constraints is something which investors won't take credibility out of. I'm sure you're reaching out to institutions, so a bit more context would be really helpful. That is just the first question. Second question is, of course, cancellation of the MSRTC order.
I'm sure they've not received notices, and all these might be formal things, but I'm sure you would have seen the interview of the transport minister, who is the chairman of MSRTC. So when he's saying that there's going to be a cancellation, unless until a deal is negotiated, there will be a cancellation. I personally called their office and checked on this one. So would really love some color on it. If you can share that if there is someone who's reached out to them, any negotiations have been done from our end, because, of course, we should expect a notice. I mean, we cannot be in that denial that that cancellation will not happen. These are my two questions for each of you.
Hello. Hello. Yeah. As far as the MSRTC media reports and whatever you are stating, we will update once we have more clarity on this. Okay. As of now, what we have communicated to the stock exchange is status quo. So we will definitely communicate once we have more clarity. Regarding your first question regarding.
Disruption. Disruption.
Basically, with regard to supply chain, obviously, powertrain components relating to battery, there have been delays, and some of the components relating to chassis, which have caused delay, and if you look at the numbers, what the industry, entire industry, has delivered in this quarter, in this year, in this quarter, of course, and then full year, that demonstrates the challenges faced by the entire industry, so we are working.
But you're very confident about your execution ability, right? So I beliEVe that's why all of us are here, and we're like. We are aware about that. And we're the sincere, most senior leaders for you, and we really hope day in, day out that this disruption should affect you. My question majorly is around, like you say, there is no impact on battery, right? You rely heavily on BYD for this technology. There's no disruption in relationship between them and you. Power cases and these sort of components, I beliEVe, can be fixed, right? But battery is something which is, I mean, it's not just you. It's the entire world which is depending on China.
Correct. Absolutely. So basically, to give clarity, as you are aware, our contract with BYD has been extended till 2030, December 2030. And in January 2025, with partnership, with support from BYD, we have basically showcased our Blade Battery platform in the Bharat Mobility in Delhi. And obviously, our relationship, both Olectra and BYD, started the journey in India and delivered the first E-bus in India. And our relationship is very strong, and it is mutual. And we do have access to the strong R&D technology they have. That is precisely the reason how Olectra is able to initiate the process of showcasing the Blade Battery platform in the Bharat Mobility. So I think this sufficiently clarifies your queries with regard to our relationship with BYD.
We are hopeful that we overcome whatever challenges we had in financial year 2025 and hopeful of delivering 2,000 numbers in financial year 2026.
Of course. Thank you so much for the clarification. This is very helpful.
Thank you. The next question is from the line of Joel. An individual investor. Please go ahead.
Hello. Am I audible?
Yes, sir, you are.
Yes. Okay. Thank you for the opportunity. I have a couple of questions. First one being, given the trade tension between India and China, are there these being the challenges for procuring batteries from our partners, BYD? And also, there was one media article regarding Olectra placing orders for about 2,325 electric bus chassis and another 750 units in August 2024. Can you clarify on the timelines for receiving these orders from BYD? That would be the first part, if you can answer that, please.
As far as the geopolitical part is concerned, we have been talking about this for the last seven years, correct? From the time we started our E-vehicle journey, this talk was there. So as you are aware, China has invested a huge amount into this technology, and they are very much advanced compared to any other country in the world. And globally, everybody, including Tesla, depends on China on the import of battery technology. So we do not foresee any constraints till now because we have been going through this journey for the last five years. And the timeline for fulfilling your order for basically.
Which is that?
Okay. Sorry. The second question is with regard to the orders which we have placed with BYD about I think you have given numbers of 750, right?
Yes. There were 750 units in August, and then I think there was further 2,325 mentioned in the articles.
So all this.
I mean, what kind of conditions we have here?
Yeah. We have basically 12 to 15 months, 12 to 18 months to fulfill these orders.
Okay. So that's the timeline you're taking. Okay. And considering a large order, right, and challenges that we see at the moment, what are the risk for cancellation of orders by customers? Are there any contractual provisions that protect Olectra financially in such scenarios or in case of order cancellation?
Basically, as I think I have clarified, the demand for electric buses is quite significant. The orders which we have mentioned in the pipeline is almost about 15,000 buses in the near future. We are not forcing any challenges in case any orders get canceled. We are also optimistic that no order will get canceled because in the past also we clarified, it is mutually beneficial for the STU and the company. In terms of operational efficiency, the electric buses are in terms of it's highly remunerative for the STUs. It's a mutual understanding because all these orders, there is a scope of the STU and the scope of the operator. As far as the STU is concerned, they have to provide depot space. They have to provide power connections.
When we talk about these numbers of large orders, there's a requirement to have about more than 200 depots. The STU has to create the infrastructure in terms of providing the space. From the EV side, we have to build a charging station. It's mutually beneficial for both the company, as well as the end customer, to have the orders and to execute the orders. We are optimistic that no orders will be canceled. Of course, any industry which is still nascent, see, as you are, I think, just to clarify, out of the total TAM, which is the total addressable market for buses, less than 1% is electrified. This gives a lot of scope for conversion. There are no enough capacities with all the OEMs put together. I don't think any orders will be canceled.
even if they are canceled, there will be alternative opportunities.
Okay. Thank you, sir, for that clarification. On the electrical depots, there was no query. So I just wanted to ask, have we received any new orders or any new EV products in pipeline for Olectra?
Our R&D is working on various products portfolio within the truck segment. We have been doing a lot of demos and trials. The Fructification of orders we expect in this financial year, and we hope the demand also picks up for the tippers because it's highly operationally in terms of operational benefit, it has got almost 8x compared to the conventional tippers, but any industry takes time, as we have seen in electric buses, so we are hopeful that the demonstrations and trials will get ultimately rectified into orders in this financial year.
Okay. Thank you, sir. That's all from my side. Thank you for answering.
Thank you. The next question is from the line of Vijaykumar Pandey from Llama. Please go ahead.
Thank you, sir, for taking my question, sir. A couple of questions. Just wanted to check what is the average realization when we compare the state buses sale to state as compared to the private sector? Which one is a higher margin business for us?
So in terms of total population of buses, the private segment has got a larger chunk. But as of now, the conversion is yet to happen, yet to take off in the private sector because of maybe a couple of reasons. The balance sheet size of the private operators is not big. And the traction is yet to happen. But we expect the traction to happen soon because it's highly remunerative for operating e-buses. There could be significant savings for the private operators. So currently, it is basically the GCC model, which is prEValent, which has become popular, and which is the most acceptable model in India, where government is pushing for conversion of the ICE engine buses to EVs. So parallelly, the private market is also picking up. We hope the traction to happen in the next one, two years.
But has the sales started in the private sector for the EV buses, or is it going to start in two years' time?
As far as Olectra is concerned, we have sold to private parties in the past, last year to FreshBus, and this year, and Microsoft also, we have sold.
Okay. Okay, and secondly, sir, in the last conference call, we spoke about capacity plan expansion, so how is it going, and when can we expect the new capacity to be operational, like commercial production?
Yeah. Last year, we moved into the new plant. We did trial production in February 2024. And from Q1 onwards, we have been working on the new facility with one particular shed wherein the body shop we have started working on that. And the second one is almost in advanced stage of construction. We expect the complete plant to be operational by this financial year end, including robotics machinery.
Okay. And the battery supply for the second plant will also come from BYD only?
Yeah. We have a relationship with BYD agreement till 31st December 2030. And recently, we have showcased our Blade Battery technology, which we are going to introduce by the end of this financial year.
Just lastly, sir, given the supply issues, do you plan to diverge the supplier base across a different supplier, or will we try to maintain the same supplier base? Because if we can't get the part from one particular supplier considered BYD, then why not to purchase it from LG or Samsung? That is my last question.
See, our company has been working continuously to improve and increase the localization content in our bus. Except the powertrain and battery cells, we continue to import from BYD. All the other components, we have dEVeloped local vendors in India, and we have been sourcing from alternative vendors in India. Except the powertrain and the battery management system and battery cells, we continue to depend on BYD. The other components, we have localized, and localization is a continuous process, so we keep working on that localization, and we hope these kinds of issues will be addressed in the near future.
Okay. Thank you. Thank you. That's all.
Thank you. The next question is from the line of Rithvik Ram, so an individual investor. Please go ahead.
Hello. Good evening, sir. congratulations on the results. Your PAT has grown up by 80% from last year to this financial year, and my first question is on the GFRP rebar product of Olectra Greentech. As I'm aware, Olectra is the new player in the GFRP rebar segment. What is your take on competition in that segment for this GFRP rebar product? You have launched it two, three months back, right?
Yeah. Basically, it is very, very initial phase. There is a lot of scope, of course. So we will, at appropriate time, come back because we are still completing the nascent initial certification processes.
Okay, so we can expect more dEVelopments in the coming six months, right?
Yes. In this financial year, we expect dEVelopments, definitely, in this product.
Has the market been identified for that? What is the potential of that market for Olectra in that segment?
See, basically, Olectra has got two segments, you are aware. One is the electric vehicle segment, and the second is the insulator segment, composite insulator segment.
Yes. Yes. Yes.
In the composite insulator segment, we make our own FRP rod, and we dEVelop some FRP parts. So we have backward integration. We make our own compound. We make our own FRP. And so we have dEVeloped expertise in making FRP products. That is where we are exploring, and then we are hopeful that we will make a big impact in FRP rebar. So as it is in the initial stages, at an appropriate time as we progress during the year, we'll be able to update. And this FRP rebar is basically an alternative for TMT bars, which is used in the construction industry.
Okay. Because there are two, three players which are established in the market. Hence, I've asked that question. But I'm sure Olectra will make major breakthroughs in this business line, just like it's doing with E-buses. I'm sure Olectra will do a breakthrough. I'm 1,000% sure. And secondly, sir, what are the status of your employee benefit schemes like gratuity and emergency fund for factory workers? And do you have an NPS policy, National Pension System policy, for your employees in place? What is your take on the employee benefits, sir, segment?
Yeah. As far as employee benefits are concerned, we do not have a funded as of now, it's not funded. It is unfunded. Based on actual valuation, we make adequate provisions in the financials with regard to gratuity, leave encashment. As of now, NPS is not yet, see, it's basically a take-all by the employees. So we will be exploring because as the employees are growing, we will definitely like to explore all the other benefits, and we'll also explore the possibility of funding the gratuity in the near future.
Okay. Because you already have taxable profits, and it's recommended to fund the crystallized liability. Those employees are completed four years and above. It's recommended to fund that portion. And then you automatically get a tax. And secondly, sir.
Please go ahead. Go on.
Sir, and the dividend, sir, in the next financial year, will there be any growth in the dividend, sir, from 40% of face value to at least 100% of face value next year? Can we expect, sir, because the dividend has been consistently the same, and the profits have grown on a higher basis, so dividend is currently 40%. Can we expect a higher dividend in the next financial year?
To clarify your question, see, as it's a working capital-intensive company, so we are trying to conserve the cash. And as a gesture from the management and from the Board, we consistently wanted to continue with the same proposed dividend. Definitely, once the numbers go up, we will go back to the Board. And then with the approval of shareholders, we'll look at better dividend in the future.
Yes, sir. My last question is regarding, will it be possible to conduct a physical annual general meeting at the factory premises or something? So as investors, you would love to see the Olectra facility. That's my last question.
We have a lot of time. This is P. Hanuman Prasad. We have a lot of time. We will seek and we'll see based upon the clearances from the SEBI because as of now, having a virtual meeting is the better facility for all the shareholders. Physically, how many people can come and assemble? The problem is that so that right now, if it is a virtual, anyone sitting anywhere, they can participate. We have almost 5.5, nearly 6 lakh shareholders. So virtual would be most preferable for any of the shareholders. But anyhow, what do you say? Physical as well as virtual combination, if it permits, depends upon the situation at appropriate time. Board will take call.
Okay. I have been investing in Olectra since September 2017, and the journey has been very beautiful, sir. Thank you very much, CFO, sir, and Company Secretary. Look forward for a bright future of Olectra.
Thank you. Thank you.
Thank you. Ladies and gentlemen, we will take this as the last question. It's from the line of Sunil, an individual investor. Please go ahead.
Yeah. Hi, Everyone. Can you hear me?
Yes. Yes.
Yeah. So as for the current production, we are having 200 buses per month, am I right? 200 buses per month. That's what the capacity is. Is my understanding correct?
Yes. Yes.
Yeah. So only because of supply constraints, we are not able to produce 200 buses. So the expansion for the 200 buses is totally completed, or still the work is going on for the expansion for the 200 buses?
Expansion for 200 is in place. Expansion for 200 is in place. We are expanding to 400 numbers in the next five, six months.
That is with roboticss. You mean to say with roboticss or without roboticss with the 500?
Basically, we work on a single shift now. Based on the demand and the total supply constraints are met, we'll be in a position to work double shift also in the existing facility itself. With the robotics, you have actually the capacity goes up.
Okay. So capacity goes up to 500. That's what you mean to say once we go to roboticss. That's what you're saying?
Yes. Yes. Yes.
That's correct. So when can you think the supply constraint might get resolved? In this quarter, like in May, June, or maybe in August or something like that?
Yeah. In Q2 onwards, sir, we expect the improvement in the supply chain.
So somewhere around August or September, something like that. Okay. So in that case, even this quarter, like April, May, June also, we'll be almost the same numbers than we can expect, am I right?
Yeah. Q4, Q1, and we'll be in line with Q4.
Okay. If this is the case, if we deliver, for example, in April, May, June, if we deliver only 220 buses, then in the next three quarters, we can deliver 1,700 buses?
Yes. We have the capacity, and we are hopeful. We have the capacity, and we are addressing whatever challenges we are facing, and we are hopeful that we will be in a position to deliver the balance 1,700.
Okay. One last question, one small thing. So at this point, the capacity is 200. So without roboticss, how much max we can expand without roboticss?
Without roboticss also, we can expand. We can work double shift. We can increase to double shift, and then we can expand.
Okay.
Today, with the single shift, we are working on 200 numbers. Okay. On a double shift, we can expand to the equal number. But any engineering industry, any plant can work up to 80%-85% efficiency.
Yeah. But the thing is, at this point, even though the production capacity is up to 200, but we are producing per quarter only around 200 buses, am I right? So is the staff available for production of 200 buses? Because we are only producing per quarter. We are hardly delivering 200 buses, not per month, actually.
Sir, sorry to interrupt. The management line has been disconnected. Please wait while we reconnect them. Thank you. Ladies and gentlemen, the line for the management has been reconnected. Yes, sir, please go ahead.
Yeah. So because at this point, we are producing only 200 buses per quarter, so do we have the staff and everything ready for producing 200 buses per month at this point of time?
Yes. Yes. Yes. We have.
Okay. And now, just one last question. So coming to this MSRTC delivery, so when the management clearly looks like we are not delivering the buses, so as for the minister, he clearly said we have not delivered any buses even after the deadline is extended. So do we have any reason why we have not delivered not even a single bus? That's what he claimed in the news channel officially. During this extended period, we have not delivered not even a single bus to them. So why didn't we approach them? Why didn't we negotiate it before rather than coming to this situation?
We have actually, I think, delivered about 220 numbers.
But he claimed in the last one month, we have not delivered not even a single bus to them, actually.
See, basically, we would like not to comment too much on the media news as of now. We have delivered 220 plus buses to MSRTC. So we have timelines till May 2026 to deliver the buses. And obviously, we'll be discussing.
Okay. So in the contract with MSRTC, is the deadline fixed for March 2026 or something like now? We have intermediate delivery points by this date. By each and every quarter, this number of buses we need to deliver. Is there anything there in the terms and conditions with the contract with MSRTC?
Hi, Mr. Sunil. This is Hanuman here again. As for the contract, we have yes, actually. The timeline is May 2026 to complete the project deliveries completely. Between monthly, quarterly basis, first year, there are some targets, obviously.
Okay, so in the terms and conditions, do we have the penalty clause or the extension clause or the cancellation clause if it is not delivered as per the contract?
I think before getting into that, I think you must have been aware because cancellation is a very upstream step. Because while executing these EV projects, both parties have their obligations. It is not something EV or Olectra only do, actually. I'm explaining in general perspective, not only from MSRTC perspective. The STs also need to support us in terms of allotting the depot and getting the people's place in and getting the upstream power. There are so many responsibilities, the authority side and the company side and certain things to be together also. So considering all these aspects, actually, if Olectra or EV solely defaulted, then obviously they would have a right legally to take that kind of thing.
But we don't have that officially documented somewhere so that we can prove anything legally. That's like delay from the department. We don't have any official documents. We might not be having that, am I right?
No, no. We have an agreement. The agreement speaks about the obligations of each party. That need not be communicated separately. But anyhow, actually, we are conscious about this MSRTC issue. We hope these negative things, whatever it is reporting in the media, should not happen.
Okay. So what about the hydrogen bus? Because we are hearing all over the world, different companies are going with hydrogen vehicles and everything. So is the R&D of hydrogen bus anywhere near to us or nowhere near to us?
So, as of now, we are not. I think in the past, we have communicated. We are not actually focusing on hydrogen bus as of now. It is very expensive and very nascent. So, we are focusing on the electric buses and the truck segment.
Okay. So because we went into tipper, we are not launching the truck, am I right? Electric truck, we have not yet launched tipper, not one. What did we launch it, actually?
We have sold about 51 electric tippers, which are already up and running for the last 18 months.
Yeah. I'm talking about electric trucks. We don't have any truck production, right?
This comes under truck segment. So our R&D is working on various other alternative platforms, alternative products. So as and when we are launching, we will appropriately make adequate disclosures.
Okay. Thank you very much.
Thanks a lot.
Thank you. Ladies and gentlemen, this was the last question for today's conference call. I would now like to hand the conference over to the management for their closing comments.
We thank all the shareholders who participated and have been very supportive in your company's growth journey and the patience and faith reposed in your company. We expect and optimistic that we will be having good growth both in terms of top line and bottom line in the coming financial year FY26. Thank you so much.
Thank you. On behalf of Axis Capital, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.