Olectra Greentech (532439) Q2 24/25 earnings summary

Executive summary

• Achieved highest ever quarterly revenue, EBITDA, and PAT in Q2 FY25, with over 2,200 electric vehicles delivered to date and a net order book of 10,503 electric buses.

• Transitioned to a new state-of-the-art manufacturing facility at Seetharampur, now fully operational and supporting increased capacity up to 5,000 units/year, scalable to 10,000 units/year.

• Emphasis on R&D, professional management, and established relationships with state transport undertakings.

• Board approved unaudited standalone and consolidated financial results for Q2 and H1 FY25 on October 22, 2024, with auditors issuing unqualified limited review reports.

Financial highlights

• Consolidated Q2 FY25 revenue reached ₹52,367.48 lakhs, up 70% year-over-year; EBITDA at ₹8,569 lakhs for H1 FY25, up 57%; PAT at ₹4,765.29 lakhs for Q2 FY25, up 136%.

• Standalone Q2 FY25 revenue was ₹51,407.28 lakhs, up 73% year-over-year; standalone PAT at ₹4,819.85 lakhs, up 130%.

• Gross margin for Q2 FY25 was 15.65%, attributed to improved operational efficiency, localization, and favorable product mix.

• H1 FY25 e-vehicle division revenue up 64.4% year-over-year to ₹75,890 lakhs; insulator division up 28.1% to ₹7,872 lakhs.

• Standalone and consolidated EPS for Q2 FY25 rose to ₹5.87 and ₹5.79, respectively.

Outlook and guidance

• Targeting delivery of 1,500 buses in FY25, with Q3 and Q4 expected to outperform H1; FY26 delivery target is 2,500–5,000 buses.

• Revenue guidance for FY25 is around ₹250,000 lakhs, and for FY26, top line could reach ₹750,000 lakhs depending on volumes.

• Margins expected to stabilize around 12% as volumes scale, with near-term margins at 15.5%.

• Capacity expansion to meet growing demand for electric vehicles and entry into new geographies.

• Management continues to monitor the impact of the Code on Social Security, 2020, with assessment pending final rules.