NewsEarningsOlectra Greentech Issues Rs 300 Crore Corporate Undertaking, Reports Strong Q2 ResultsOlectra Greentech Issues Rs 300 Crore Corporate Undertaking, Reports Strong Q2 Results
Olectra Greentech issued a Rs 300 crore corporate undertaking to REC Limited, replacing an unused Rs 2,500 crore credit facility. The company's Q2 FY2026 results show 25.86% revenue growth and 9.51% net profit increase year-over-year. The e-vehicle division remains the primary revenue driver. Mr. Rajesh Reddy Peketi resigned as Whole Time Director but continues as a Non-Executive Director.
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Olectra Greentech Limited , a leading manufacturer of electric vehicles and composite polymer insulators, has made significant strides in both its financial performance and strategic initiatives, as revealed in its latest corporate disclosures and financial results.
Corporate Undertaking for REC Limited
Olectra Greentech has issued a revised Irrevocable Corporate Undertaking with Indemnification obligation in favor of REC Limited for Rs 300 crores. This undertaking replaces an earlier Letter of Credit facility that remained unutilized against a sanctioned amount of Rs 2,500 crores. The company plans to use this facility to accelerate its production process and improve working capital cycles.
Key points of the undertaking include:
- The advance can be utilized exclusively for bus procurement.
- Advance payments to bus manufacturers require bank guarantees.
- If buses are not delivered and hypothecated within 120 days, Olectra must refund the corresponding amount within 30 days, plus additional interest at 2% above prevailing rates.
Q2 Financial Results
Olectra Greentech has reported robust financial results for the second quarter and half-year ended September 30:
| Particulars (in Rs Lakhs) | Q2 FY2026 | Q2 FY2025 | H1 FY2026 | H1 FY2025 |
|---|---|---|---|---|
| Revenue from Operations | 64,700.89 | 51,407.28 | 98,460.61 | 81,825.50 |
| Net Profit After Tax | 5,278.05 | 4,819.85 | 7,517.19 | 6,894.06 |
| EPS (Basic & Diluted) | 6.43 | 5.87 | 9.16 | 8.40 |
The company's performance shows significant year-on-year growth, with revenue increasing by 25.86% and net profit rising by 9.51% in Q2 FY2026 compared to Q2 FY2025.
Segment-wise Performance
Olectra Greentech operates in two primary segments:
Insulator Division:
- Q2 FY2026 Revenue: Rs 7,536.88 lakhs
- Q2 FY2026 Profit before Tax & Interest: Rs 2,514.47 lakhs
E-vehicle Division:
- Q2 FY2026 Revenue: Rs 57,164.01 lakhs
- Q2 FY2026 Profit before Tax & Interest: Rs 5,874.89 lakhs
The e-vehicle division continues to be the major revenue driver for the company, contributing significantly to both top-line and bottom-line growth.
Management Changes
The company has announced that Mr. Rajesh Reddy Peketi has resigned from the position of Whole Time Director, effective November 8, 2025. He will continue to serve as a Non-Executive Director of the company.
Outlook
With the new corporate undertaking and strong financial performance, Olectra Greentech appears well-positioned to capitalize on the growing demand for electric vehicles in India. The company's focus on improving working capital cycles and accelerating production through strategic financial arrangements may contribute to sustained growth in the coming quarters.
Historical Stock Returns for Olectra Greentech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.68% | -5.33% | -2.60% | +19.40% | -7.93% | +2,202.64% |
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