Olectra Greentech Ltd (NSE: OLECTRA) Q1 2026 Earnings Call dated Aug. 13, 2025
Corporate Participants:
Unidentified Speaker
Sharat Chandra — Chief Financial Officer
Analysts:
Unidentified Participant
Kapil Singh — Analyst
Deepak Poddar — Analyst
Aniket Madhwani — Analyst
Bala Murali Krishna — Analyst
Harsh Saraswat — Analyst
Presentation:
Unidentified Speaker
Sat.
Unidentified Speaker
SA.
Unidentified Speaker
Foreign.
operator
Ladies and gentlemen, good day and welcome to the Electra GreenTech Limited Q1FY26 earnings conference call hosted by Nomura. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kapil Singh from Nomura. Thank you and over to user.
Kapil Singh — Analyst
Good evening ladies and gentlemen. On behalf of Nomura, I welcome you to this call. It is our pleasure to host Mr. Sharat Chanda, CFO Olektra for this call. Sir, over to you to take this forward.
Sharat Chandra — Chief Financial Officer
Yeah, thank you Kapil. Good evening and warm welcome to all of you who have joined us today for olektra Green Tech Limited earnings call for the Q1 2526. We are taking as read the presentation which is put on our website along with the safe harbor statement thereon. We are pleased to state that the company showed a steady growth in consolidated revenue and profitability for the quarter one versus corresponding quarter of last year. We have delivered 2879 electric vehicles which includes 2812 electric buses and 67 electric triples till 30th June 2025. Now some of the key highlights I would like to present before we delve into the financial performance.
Let me summarize them for you at a glance. Olatra buses have successfully covered more than 44 crore kilometers across pan India. This has led to the reduction of approximately diesel consumption of 135.4 million litres which in turn has reduced the CO2 emissions by about 362.8 million kgs, which is equivalent to planting 16.8 million trees. In terms of deliveries, the whole industry has been having headwinds with regard to supply chain constraints. Despite this, Olektra, with cumulative deliveries of 2812 electric buses, has been a leading performer and ranks in the top two in terms of total deliveries till date.
We are completely focused on the pain points and addressing the challenges and will be striving to reach to number one position in financial year 2526. As you are aware, we have discussed in the past, it is no longer a demand constraint and strong demand continues with the company’s net order book of electric vehicles stands at 10,193 numbers as at 30 June 2025. To recap, we have unveiled our Latest technology advancement, the base battery technology at the Bharat Mobility Global Expo 2025. And we are pleased to inform that the homologation process of this bus in advanced stage expected to be completed in this month and we are planning to commercialize small quantities in quarter three onwards.
With its cutting edge technology and design and exceptional energy density, the blade battery promises not only longer ranges but but also the faster charging time ultimately enhancing the performance, safety and reliability. The performance is expected to be 30% better which is achieved due to lighter weight batteries and 30% lesser than previous batteries. So as we have always, our philosophy is to continue focus on increasing our manufacturing capacity and enhancing our technology capabilities. We are constantly exploring new ways to improve, 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 one on a consolidated basis, revenue for the quarter one stood at 347.22 crores. A steady 11% growth over that of last year. This was led by top line growth in both the business segments. In terms of electric bus electric vehicle deliveries we did about 161 vehicle deliveries in quarter one. Visa was 156 in last year we had an impressive EBITDA of 55.97 crores against 50.51 crores in the previous year. Same quarter marking a steady growth of 11%. The profit before tax surged to 33.8 crores this quarter.
A 6% increase from previous year’s same quarter of 31.85 crores. The profit after tax stands at 26.03 crores up by 7% compared to the previous fiscal quarter one of 24.25 crores. And thank you. And over to Nomura team for the Q and A.
Questions and Answers:
operator
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 their touch. Don’t telephone. If you wish to remove yourself from the question queue, you may press Star and two Participants are requested to use handsets while asking a question. Ladies and gentlemen, we’ll wait for a moment while the question queue assembles. We have our first question from the line of Rishabhagini Otri, an individual investor. Please go ahead.
Unidentified Participant
Thank you for the opportunity to give me the question. I have just three questions. The first thing was have you applied for the PME drive tender which is, you know, I think in the works and should be opening anytime soon. The second question is around the blade battery technology. What’s the range we are looking at from a battery range operation perspective? The third question is, you know what’s the. I mean where are we from a capacity utilization perspective? How many passes per month RVR at as of now post the June quarter. These are the three questions.
Sharat Chandra
Yeah. Thank you very much. Regarding first question regarding PM eDrive the PM E Drive tender is actually getting the extended in terms of utilization by 2 years from 31st March 26th to 31st March 2028. The total outlay is about 10,900 buses with 9 meter of 2312 meter of 8600 with a subsidy component of 3585 crores. Oletra is very much in the race we are going to participate in this tenders.
Unidentified Participant
So isn’t there right now. Isn’t there an active tender right now? I mean I’m assuming the latest submission.
Sharat Chandra
The big date is 11th September 2025.
Unidentified Participant
Got it sir. Thank you.
Sharat Chandra
And the second question is with regard to blade battery in terms of performance it is going to increase the mileage by about 30%. So when we talk about we are going to. As far as Solectra is concerned we have showcased two models 9 meters and 12 meters. So 12 meters we can expect from a current 300 kilometers range to about 400 kilometers range.
Unidentified Participant
Okay.
Sharat Chandra
With regard to the last question of capacity. See currently we are under utilizing our capacity. So we are now striving to basically increase our production capacities in the coming quarters. The second half we are expecting significant ramp up. The company is geared up and we are actually in the process of streamlining the production. And as we ramp up our operations the initial guidance what we gave of 2000 numbers in financial year 26. We are on the right track to achieve this target and we are seeing a strong. We started seeing strong traction and ramp up is happening from quarter two followed by with acceleration in quarter three and quarter four.
Unidentified Participant
That’s helpful. Any numbers you can give us like you know how many buses. I mean of course.
Sharat Chandra
As of now I’ll not be able to give the exact numbers quarter wise breakup. But overall our target of 2000 remains intact as of now.
Unidentified Participant
Thank you for the questions. That’s all.
operator
Thank you. We have our next question from the line of Ashish Khurana from ANK Capital. Please go ahead.
Unidentified Participant
Good afternoon Sarat sir and everyone. Sir, my first question was regarding the interest outgo. So There is a 30 odd percent decrease there but I think we would be still Be drawing from our 50% 500 crore sanction. So I just wanted to check this decrease is due to lighter working capital requirements or is there any change in terms of, you know, any decision to capitalize the interest costs. So why this decrease in Q1?
Sharat Chandra
Okay, yeah. See basically the major cost as you must be aware are major cost of finance relating to the letter of credit discounting. So this quarter our discounting cost has come down in terms of both rate and the quantum. So that is primarily the reason for the lower interest cost as per the accounting standards, the interest on the term loans before commercial production is getting capitalized.
Unidentified Participant
Got it. My second question was a bit broader one. So it is not a suggestion, just a question. So I understand that the BYD’s platform has various advantages, stability, safety, some architecture advantages and so on. But one argument that could be made was that you know, we should probably reduce our supply chain risk and you know, not only depend on one supplier and in China and you know, the parts of the world there are various options of different platforms and battery cells and so our 50 member R&D, 50 plus member R& D team, you know, should maybe not work on trucks and you know, focus on a different platform for ebuses because that is where orders are right now obviously you know, I mean our management is very esteemed and they would have discussed this internally also this option.
So I just wanted to understand are there reasons to, you know, only work with BYD at this point? Because could be contractual reasons or you know, the technology shift is too big for us to work on another platform. So any color on that you’d like to give?
Sharat Chandra
Yeah, see basically just wanted to clarify, we have a very strong relationship with byd. Nevertheless our R and D team has been working on different platforms and we have been working and testing on various models other than BYD platform. So obviously we are geared up to introduce these technologies as and when the R and D commercialization aspects are completed we will notify to the stock exchanges in case of any major changes, any new products, introduction and all that. So we are definitely diversifying. And as we have mentioned earlier, our localization philosophy is a continuous process.
We work on the entire components are localized except the battery and battery management system. And globally, not only byd, entire globally the industry is dependent on China. If there are really serious concerns, it will impact the entire industry. Not only Electra, but we are confident, we are hopeful that there will not be any kind of such situation because we have been discussing this question for the past five years and as of now both the countries are interdependent on this aspect. I don’t think we are going to see any great issues as of now. I hope to have clarified you.
Unidentified Participant
So one small clarification here. So we are working on different platforms which includes buses. Right. So there is no clause which says that we only have to work with.
Sharat Chandra
Absolutely. There’s no such clause. We are working on alternative platforms.
Unidentified Participant
And so one more last question on our insulator business. So it has been very profitable this quarter. So I just wanted to check. I mean is it related to some one off exchange rate fluctuation thing and secondly any impact on tariffs? Because I think we also supply a fair bit to USA in terms of our insulator business. So just these two questions on the insulator part.
Sharat Chandra
See we have been striving to improve the operating margins at the GM level. We have been investing a good amount in R and D design. Design optimization is one of the reasons why we are able to improvise reduce the wastages bringing production efficiencies that is one aspect and then larger exports with good margins. So it’s a mix of both export and domestic sales. And as far as the US tariff is concerned it doesn’t impact us. See finally this is the important very critical raw materials. As far as transmission lines are concerned it may impact. We have actually deals with our customer with regards to what is their impact.
We have not yet received any response. But insulator being a critical input for transmission line we are not. As far as Olektra is concerned we are not getting any. We are not. We are hopeful of not getting any impact on account of the tariff price.
Unidentified Participant
Got it. That is promising. I wish you all the best for rest of the quarter sir. Thank you.
Sharat Chandra
Thank you. Thank you so much.
operator
Thank you. We have our next question from the line of Vijay Pandey from New Armor Wealth. Please go ahead.
Unidentified Participant
Hi sir. Thank you for taking my questions. A couple of questions. One of the EVC is so what is the battery prices are looking like? Have you got any benefit in terms of low battery prices or last six months or last quarter as compared to last year? And how do you see the trend going forward?
Sharat Chandra
See as far as the battery prices are concerned it is definitely looking down. The prices are coming down and we are having very good negotiations with our vendors to reduce and take the impact of reduction of prices. So obviously whatever prices is coming down it’s we are getting in the sense our cost of production, our cost of manufacturing comes down and hope the trend continues.
Unidentified Participant
Okay. So do you Pass up this price decline to the customers or is it like goes directly into the P and L? The reason I’m asking is our margin segment margin for electric vehicles has come down, is coming down so. But battery prices are also coming down even though our utilization is increasing. So just want to check how should we look into it?
Sharat Chandra
I think we have clarified in the past see this. Our business model is gross cost contract model wherein Olektra’s responsibility is to manufacture and supply the buses as per the tender conditions given by the end customer which are state transport utilities, the operating arm of the group EV Trans. They bid for the contract and accordingly operate for the life cycle of the buses which is about 10 to 12 years. So our mutual receipt when we talk about the margins I think I have clarified in the past, I would like to clarify again. The operating margins in terms of percentage may come down but in terms of absolute value it is going to go up because of the volume which we are targeting.
See last year we did about 972 buses with a margin of about 14 plus percent. But as the volume goes up and as the competition goes up, when we talk about 10,000 numbers we expect the percentage in terms of operating margin in percentage terms may come down but overall in terms of absolute value it is going to go up. That is the first I think I have clarified on that as far as the Q1 margins are concerned since the volume it all also depends on the product mix. So we have as explained. Again I would like to clarify.
We are present in all the applications. We have coach buses which is apply for intercity. We have 12 meters which runs intra city and we have 9 meters which runs intra city. So quarter and quarter it depends on the sale mix which could impact in terms of absolute value of margin.
Unidentified Participant
Okay, okay. Any preference you are seeing in terms of what is the mix looking like? Like is it intra city, Intra city. Anything in particular you will seeing from the state government side?
Sharat Chandra
So we have Electra has an order book of about 10,000 plus numbers. We have a mix of Intercity, we have mix of 12 meter and 9 meters all put together based on the customer requirements. We schedule our production and accordingly deliver as per the customer requirements.
Unidentified Participant
Okay. Okay. And so lastly just wanted to check about the insulator sales. So if you can just give us a brief about the reasonable exposure in North America and other markets that will be helpful.
Sharat Chandra
Come again, your last bit was not very clear.
Unidentified Participant
The insulator sales, what is the like revenue exposure to North America market and other market like in domestic exports?
Sharat Chandra
Yeah, last Year we clogged about 180crores. This year we are targeting, we have an order book of about 350 crores as we speak and we have last year done about 30% exports, about 60 crores of 180 crores. We did export, so export orders also are increasing and we are expanding our presence in African countries though our major customer is McLean Power Systems in US where the geography is North America. So we have actually been working on introducing, introducing various products within the insulator segment itself.
Unidentified Participant
Okay. Okay, thank you, thank you, thank you.
operator
We have our next question from the line of Deepak Podar from Sapphire Capital. Please go ahead.
Deepak Poddar
Hello.
operator
Yes.
Deepak Poddar
Am I audible?
Sharat Chandra
Yeah, yeah.
Deepak Poddar
Okay. Thank you very much.
Sharat Chandra
So for the opportunity.
Deepak Poddar
So just wanted to understand first on the, I mean our volume and delivery schedule that we are targeting because this first quarter we did only 161 in units and we are still targeting 2000. So that left us with I mean more than 600 per quarter kind of a volume, I mean which to me looks very steep given the target of 2,000 buses that we have. So can you throw some more light that how are we able to achieve that or how are we going to achieve this would be very helpful.
Sharat Chandra
I think. Last quarter itself we have mentioned about the Q1 numbers is going to be subdued and we have seen a strong surge and traction in quarter two onwards. And in terms of ramp up of production and Q3 and Q4 will be, we are going to accelerate. We have actually optimizing the our production processes, scaling our supply chain in terms of smoother execution to execute these numbers. So we are confident as of now that we will be able to meet this target by year end. Okay.
Deepak Poddar
And so what sort of volume we might be targeting in second quarter given the surge in traction we are expecting in this quarter. I mean we are already 1 1/2 months into this quarter. Right. So we would have got good sense.
Sharat Chandra
At what sort of volume. I would not be giving you exact numbers, but given indication it will be definitely more than double in second quarter compared to Q1. So and Q3 and Q4 will be the our biggest quarters. H2 is what we are targeting to meet the targeted 2000 numbers.
Deepak Poddar
Okay. So 2Q volume can be more than double as compared to first quarter that we have achieved this quarter.
Sharat Chandra
That is what we are targeting.
Deepak Poddar
Okay.
Sharat Chandra
Okay.
Deepak Poddar
That’s understanding. And in terms of debt side, I wanted to understand given our expansion to 10,000 buses, what sort of debt level we might need to add and what is the incremental CapEx that we are targeting in this expansion plan.
Sharat Chandra
As of now we have a term loan sanction for about 500 crores for the new facility as far as the civil work is concerned we are expanding our capacity to about 10,000 numbers as far as civil structure is concerned and with initial capacity of about 5,000 numbers expandable or scalable up to 10,000 numbers this is what is the plan we have currently and as far as the working capital is concerned we are having continuous discussions with our customer which is EV transaction to basically reduce the receivable cycle and we are hopeful that this will happen soon because all the major contracts when we talk about the three major contracts in the country MSRTC about 5150 buses best about two contracts which could be about 2400 and 2100 both these contracts, all these three contracts financial closes are completed they are in various stages of documentation so we are not seeing any major challenges as far as the drawdown is concerned so as you are aware this is a capital intensive industry and the operating company Ebtrans is investing on the capex and operating for the entire project cycle and we have currently about almost 1500 crores of debt profile with this we are hopeful of managing this financial year as we see the ramp up in production and ramp up in the volumes we will definitely try to increase our requirements we are closely monitoring and tracking that and what is the.
Deepak Poddar
Total capex involved here in this expansion?
Sharat Chandra
About 700 crores is the total capex.
Deepak Poddar
And by when we are expecting it to come on stream.
Sharat Chandra
So basically it is in advance stage of construction is in progress by quarter 4 we will be fully operational by 4Q of FY26 yes correct.
Deepak Poddar
Okay and just one last thing on the margin front we mentioned that operating margins may come down as volume go up so what sort of steady state margins range we might want to look at?
Sharat Chandra
We are looking at around 12% EBITDA margin in terms of overall long term in terms of volumes and the industry as it’s progressing because of the competition because of the volumes overall currently the volume of the percentage in terms of percentage is high but as we see we may it can stabilize around 12%.
Deepak Poddar
12 okay, that’s it from my side thank you so much all the way best.
Sharat Chandra
Thank you.
operator
Thank you. We have our next question from the line of Anil an individual investor Please.
Unidentified Participant
Go ahead Good evening Mr. Sarat Good evening hello. I want to know like see you gave earlier that my March 24 and then subsequently March 25 and now, March 26, that we will achieve capacity of 5,000 buses. So can we expect that this time what you are going to say and confirm is the final one?
Sharat Chandra
Mr. Anil, please understand and appreciate the challenges which the industry is facing. So we are very conservative company. See as the volumes based on the order production and all that, we have been conservative in investing in our capex. Okay. So currently we have a capacity to make about 10 buses on a single ship. Okay. And if there’s a need and if the supply chain challenges are not there, we can go up to 20 buses per day. So company has been conservative in conserving the cash. So accordingly, we have not drawn a full loan also. So we are definitely online on path to meet that 5,000 number before quarter four of this year.
Unidentified Participant
If you remember like last time I discussed and I asked that whether you are going to utilize the entire fund which you have already lined up for building up the capacity of 5,000 buses per year. You mentioned to me in absolute term that yes, next six months we’ll be utilizing it. I understand that the industry is very nascent, it’s going through a lot of technological changes. We are with the company, we are with you. We understand these challenges. The only thing what I’m asking is that see if you have placed already planted machinery for the factory, you are very much sure about the capacity going to be in place, is that you are confirming that plant and machinery, what you want is already ordered and it will be in place.
And our capacity by end of this financial year will be 5,000 buses.
Sharat Chandra
Yes, definitely. We have already placed orders, we are working very rigorously with all the vendors and as far as the drawdown is concerned, we are going to complete in the next three to five months. And we are definitely hopeful that by quarter four our capacity will be 5000 plus.
Unidentified Participant
So what you are saying is that in Q1 we have delivered only 160 buses. In Q2 we are going to deliver 300 more buses. And so rest of the 1500 buses, let’s say 1600 buses, for the sake of simplicity, 800 buses per quarter. We are set to achieve that gross targets.
Sharat Chandra
Yes, we are targeting to achieve those kind of numbers, provided there should not be any kind of supply chain advance.
Unidentified Participant
Okay. And so we can as well say that next year definitely for sure we will achieve 5000 buses as per our target is concerned. And capacity in place is concerned.
Sharat Chandra
Correct. As far as capacity is concerned, definitely 5,000. As you must be aware, any manufacturing facility do not work up to 100% of its capacity generally 85% is what the production capacity any manufacturing concern can achieve. So we are definitely targeting to meet our orders in the next 24 months.
Unidentified Participant
Okay. There is one discussion going on in the market. I don’t know whether it is true or not. But just wanted to know your from your side being a company representative that Electra is the promoter is looking to sell this company to pay off his partner’s commitment which he has given 15,000 crore.
Sharat Chandra
No, we are not aware of any such kind of things. Nothing of the sort is on Anvil.
Unidentified Participant
Okay, all the best to you. And we hope that company will definitely achieve the numbers which you are projecting. And we are with the company. Thank you very much.
Sharat Chandra
Thank you so much. Thank you so much, Anilji.
operator
Thank you. We have our next question from the line of Aniket Madhwani from Step Trade Capital. Please go ahead.
Aniket Madhwani
Hello. Hello.
operator
Yes.
Aniket Madhwani
Hello. Good evening, sir. Hello.
Sharat Chandra
Good evening, Aniket.
Aniket Madhwani
Sir, my question is with regard to the recent order book. So sir, as per the news, the order from the MSRTC was cancelled, right? An exchange shorter clarification. So sir, what is the status of that 5150E buses from the MSRTC?
Sharat Chandra
Yeah, 5150 MSRTC contract is very much under execution. So the company is working to complete the targets. What has been discussed and mutually agreed with the customer. So there is no issue with regard to the order as of now. So whatever you have mentioned was only a media news. We have not received any formal notice of cancellation at that particular point in time. And we maintain very, very good communication with them and are committed to fulfilling the contract plan. The project holds significance, important, significant importance for both the parties. Okay. Okay.
Aniket Madhwani
And sir, what will be the capacity utilization? So actually you are contemplating to increase the ebus capacity from 200 to 400. So what is the capacity? And second thing is actually we want to know about the tentative production for FY26. What will be the turnaround rate for FY26?
Sharat Chandra
As far as capacity utilization is concerned, it is currently at a low level. So we have about almost 2500-3000 buses capacity where we have achieved about only 161 buses in Q1. So as we progress, as we ramp up our supply chain and as we ramp up production, we will be having better utilization of our capacity. As far as the numbers are concerned. Numbers are concerned. As I clarified to fellow investor just shortly, we are seeing strong traction and ramp up is happening from Q2 with further acceleration in Q3 and Q4.
Aniket Madhwani
What I am asking. So it was contemplated to increase the monthly output from 200 buses to 400 buses, right? So at this present. So suppose in July month or June month, how much EBUS is that you you produce? So actually I’m asking about only monthly monthly run rate, not about quarterly.
Sharat Chandra
Yeah, monthly rent rate. As of now we are taking note of your point. We are at present disclosing on a quarterly basis numbers as far as monthly is concerned. We will deliberate internally and over a period of time as we progress, we will take a note of your point and we will come back with regard to in Q1.
Aniket Madhwani
In Q1 you mentioned. In Q1 you mentioned 161, right?
Sharat Chandra
Correct.
Aniket Madhwani
It is very low. So monthly rate would be somewhere around 55. Right. Hello.
Sharat Chandra
So basically we should not look at that way. So it all depends on the availability of materials.
Aniket Madhwani
So we.
operator
Hello Ladies and gentlemen, we have the management slide disconnected. Please hold on patiently while we reconnect them. Ladies and gentlemen, thank you for patiently waiting. We have the management back with us. Bank over to you sir.
Aniket Madhwani
Hello. Hello. Am I audible, sir?
Sharat Chandra
Yeah, you’re audible.
Aniket Madhwani
So sir, so you mentioned that 168 for Q1, right. So sir, earlier monthly run rate for was mentioned as a 200. Right. So if we consider quarterly then it would be somewhere around 600. Right. So again 600 you have achieved only 168. So it seems very low capacity utilization. Right. As compared to the commitment.
Sharat Chandra
Yeah, I would like to just clarify. We have mentioned 200 numbers will be the capacity what we are going to have per month. Okay. That means about 2500 numbers is what the capacity production capacity. So our target for this year in the. Even in the previous quarter four number quarter four earnings call, they mentioned about 2,000 numbers out of which we’ve already clarified that Q1 will be subdued. Q4 we did about 290 numbers and Q1 we have done about 161 and Q2 we are seeing a strong traction and Q3 and Q4 there will be acceleration overall at this juncture we are sticking to our 2000 number target.
Aniket Madhwani
Okay. Okay. 200 number as a target for a monthly on a means annual it would.
Sharat Chandra
Be 2000 annual target of 2000 numbers.
Aniket Madhwani
Okay. Okay. So what are the key reason for the shortfall in the committed number? What are the key reasons for this?
Sharat Chandra
So I think I’ll have to mention about the industry landscape, the supply chain ecosystem, the overall in terms of numbers, electra supplied about 2,879 electric vehicles. And compared to entire competition we have Tata Motors, we have Switch Mobility, PMI Photon and others. So we are ranking in terms of overall electric buses deliveries till date right from inception in second position. So when we talk about numbers this quarter we are standing in the forefront. So there are supply constraints, supply challenges, There are raw material import issues. There has been earlier battery norms which was there like stringent battery norms which were introduced which impacted in terms of getting the deliveries and making the product.
And there has been war impact also Ukraine, Russia war impact with regard to getting some raw materials. By the. I’m talking about the industry. So as far as we are, we have been. When you say to the entire industry, this issue is there. So we are now overcoming. We are working very closely with our vendors. We are doing lot of localization. So we are hopeful that again to meet the targets what we have set for ourselves.
Aniket Madhwani
When you say supply chain issue. So it is with regard to the semiconductor and the battery pack or apart from that is there any other issue as well?
Sharat Chandra
It is relating to components relating to chassis components relating to battery.
Aniket Madhwani
Okay, understood. Thank you. Thank you. Thank you.
operator
Thank you. We have our next question from the line of Bala Murali Krishna from Oman Investment Advisors. Please go ahead.
Sharat Chandra
Hi, good evening.
Bala Murali Krishna
So regarding even upcoming or since the last many days. So we have not many months. I have not won any big order. I think in between we received some Himachal Pradesh order. So what is the pipeline and having such an order book which is not executable as of now I don’t think that we can able to see any orders in the upcoming till next one one and a half year. Because nobody will everybody want to get the bus delivered there. We are not in a position to deliver any buzz even after two years even if you don’t order.
So how do you think this order book will pan out in the coming years? And do you think that these issues will be sorted out? Yeah.
Sharat Chandra
Mr. Bala Balamun, I would like to basically again reiterate in terms of overall the tenders. Not many tenders have been floated and we have in the first phase they clarified first phase of the PME drive. We did not get any order. As of now the PME drive has come with a revised schedule. It is about 10,900 buses with subsidy of about almost 3,500 crores. In terms of value it is also about right. The value is also about almost 10,900 crores. So we are definitely participating. We have the extension the because of under utilization the government has extended the scheme for other two years the cosplay has been not been utilized.
So you have to understand the industry landscape where we are. The ecosystem constraints are there. We are working very closely, monitoring very closely. We are definitely targeting to meet our order book in the next 24 months. I hope regarding.
Bala Murali Krishna
Yeah, yeah, you have given a good clarification and in regarding the PME drive. So how what do you think that how much order we can grab at least the initial stages we could not able to get anything. So even if they extended order also what do you think how much we can get it from that?
Sharat Chandra
Just to reiterate our philosophy, we are definitely working on profitable margin at profitable margins. So the margins are not healthy. We will not look at top line oculos. We have been more bottom line driven rather than top line. So if the price is not attractive, we will not bid for it. But we are hopeful in the new tender wherein definitely with Oletra being a fourth front runner as far as the front in terms of getting orders. As far as the market share is concerned, we are having about almost 30, 35%. So we are hopeful of getting good number.
We cannot mention any exact quantity. Definitely we are going to participate.
Bala Murali Krishna
Good sir. Lastly, on the issuance side, when we are submitting 2,000 buses. So do you see any unforeseen downside risk for this one? Because we have not met the guidance in the last few years because of a lot of issues, supply chain issues that as of now maybe you would have got better clarity as most five months finished in this year. Do you see any unforeseen risk where we could may not be able to meet the target?
Sharat Chandra
As of now, I am not forcing any kind of this thing. As of now we are geared up to meet the targets. So we are striving hard and we are working on the pain area and we are definitely trying to mitigate whatever issues or risks are there. Concerns are there. As of now we are sticking to our guidance of about 2,000 numbers.
Bala Murali Krishna
Any update sir? So have you received any orders further order from the tip? And we are in discussion with our parent company of semi anything materialized?
Sharat Chandra
I think the biggest order in terms of outrage sales we got from HRTC you are aware 297 buses. So which we are going to deliver the first proto in the month of September and we are hopeful of completing the entire order book by March 2026. As far as our parent company is concerned we are in continuous discussions with the management of our parent company and recently we got an order for about 70 electric tippers from them and we are planning to execute the balance quantity in this quarter.
Bala Murali Krishna
Okay, that’s all from us. Thank you.
Sharat Chandra
Thank you.
operator
Thank you. We have our next question from the line of Nihar Mamtara, an individual investor. Please go ahead.
Unidentified Participant
No, hey, thanks. All my questions have been answered so thank you so much. I just look forward to, you know, the positive results in the next three quarters.
Sharat Chandra
Thank you so so much Nihar.
Unidentified Participant
Thank you sir. All the best.
Sharat Chandra
Okay, thank you.
operator
Thank you. The next question is from the line of Rakesh Dikchandani from RT Associates. Please go ahead. Rakesh sir, are you there? As there’s no response from this participant we move on to the next one. The next question is from the line of Mohit Agarwal from Sarit Exports. Please go ahead.
Unidentified Speaker
Yeah.
Unidentified Participant
Hi Mohit sir. How are you?
Sharat Chandra
I’m fine. How are you Mr. Mohit?
Unidentified Participant
Fine, fine, fine, fine. Okay. Now regarding your production and your numbers. We’ve been hearing that you will be ramping up the production since the last two, three years. A couple of years back you all had some battery issues. The approvals from the government which came in last whole year also was a washout. The numbers did not come in this year. Also you’re promising 2000 buses but what’s the assurance it will happen? Orders are in hand. The plant is in hand. The group is rock solid, debt free group. I just don’t know what’s going wrong and why.
Your partners byd, they are the best in the world. Meil Group is rock solid. It’s really sad to see that the performance doesn’t come in terms of numbers.
Sharat Chandra
I think Mr. Mohit, appreciate your observation. I think I have clarified very clearly the industry landscape and the supply chain ecosystem that answers most of your queries. It is not only Olektra which is not able to deliver. It is an entire industry has been facing the supply chain constraints.
Unidentified Participant
But we should be different from the industry though. That is why we are Olektra and that is why we are Mello. We will keep talking about what is happening in the industry. Then how are we different from others?
Sharat Chandra
We are in top two as we speak. In terms of overall cumulative numbers we are striving to be number one in this year. Whatever challenges we have been facing. Obviously Olatra is a part of the entire industry though we are different in terms of. Yes, we are having strategic partnership with BYD which is world’s largest EV manufacturer and access to their best technologies. They have a very, very strong parent. So nevertheless this will not Always help. There are supply constraints. So definitely we have an advantage. We are seeing that that advantage will convert into numbers this year.
We are keeping a target of 2000 numbers definitely this year.
Unidentified Participant
Investing with you guys is a no brainer. You know the meal group BYD partnership orders in hand, plant is up and ready. I don’t know why you all cannot. It’s just too sad.
Sharat Chandra
Mr. Mohit, wish us good luck. Definitely we are going to complete the target of 2,000 numbers. We definitely require support from investors like you who can push us in terms of motivating. And definitely we are looking forward to meet our numbers this year.
Unidentified Participant
If you want to physically, we’ll physically come and push if required.
Sharat Chandra
Please do come. Please do visit.
Unidentified Participant
Thank you. Okay, tell me one thing. If you’re saying Q2 is going to be better, what were your numbers in July until this August? I’m sure you don’t. You cannot disclose the exact numbers. But what are the approximate numbers? Have they improved from Q1 or no? Approximately.
Sharat Chandra
Definitely showing Basically being a price sensitive. I think we have clarified in the past we will not be able to diverge the exact numbers. Definitely we are seeing strong traction. Ramp up is happening in quarter two. And definitely you will see the numbers when we publish the results.
Unidentified Participant
Sure. And any news on the BYD Pax card?
operator
Sorry to interrupt sir, but I may request you to rejoin the question queue for follow up questions.
Unidentified Participant
Sure.
operator
Thank you. The next question is from the line of Anil, an individual investor. Please go ahead.
Unidentified Participant
Hello Shahruji. Can you please tell us like this 5000 buses capacity which we are going to achieve in this financial year end out of that how much will be for the purpose of blade battery technology versus.
Sharat Chandra
See, we have not bifurcated anything. We are actually planning meticulously to introduce the blade battery technology itself for the existing orders. So we will once. Once we start doing the commercial operations, the homologation process in advanced stage. We expect that to be completed this month. Once that is achieved, we will start the commercial production and sales in quarter three itself. So overall 5,000 numbers includes blade battery.
Unidentified Participant
Yeah. But approximate numbers can you say that like out of 5000 will have a capacity of 2500 buses based on village battery technology. Because that’s the future. You. You are saying.
Sharat Chandra
So there is no separate bifurcation because it is going to be assembly instead of the conventional batteries it is going to be blade battery. And accordingly the CHARC and other components there could be different design. So overall in terms of capacity it is going to be 5,000 numbers. Which will have a mix of the conventional. Conventional systematic cells to be replaced with battery.
Unidentified Participant
So can we say that if required, if needed like entire 5000 capacity can be of blade battery technology based production.
Sharat Chandra
Yes. Yes. Going forward we are going to achieve. We are going to. Our objective is to make it great battery going forward.
Unidentified Participant
Okay. And any update about the. Any update about the new CEO appointment?
Sharat Chandra
As of now the board is taken actively working to appoint a new CEO as and when it gets crystallized, the same will be notified immediately. Stock exchanges.
Unidentified Participant
So the work is in progress. Can we say that?
Sharat Chandra
Yes. Yes. Yes. Correct.
Unidentified Participant
Yeah. Thank you very much. And all the best to you once again.
Sharat Chandra
Thank you.
operator
Thank you. The next question is from the line of Gaurav from utility Unified. Please go ahead.
Unidentified Participant
Hello. Hi. I’m audible.
Sharat Chandra
Yeah. Yes.
Unidentified Participant
Yeah. Hi. I just wanted to know now that we have our order book of 10,000 electric buses in hand. Just wanted to know how many batteries BYD batteries have reached the Indian source so that we can get an estimate of like what would be the production level. So how many of those 10,000 batteries have reached Indian source?
Sharat Chandra
Let me clarify, Mr. Gaurav. So basically it’s a continuous process. So based on the production schedule, quarter on quarter, we have to make the financial arrangement in terms of LCs. Once the LCs are issued, they will manufacture and supply the buses. So it is not that they keep the entire inventory in India. So it’s a continuous process where we have monthly quarterly cycle. There’s a lead time of over 45 to 60 days.
Unidentified Participant
Okay. And I know like how many have been ordered out of those 10,000 so that we get a fair estimate.
Sharat Chandra
So we order on the basis basis of production plan for the year. So mutually we continuously discuss. So we want to basically keep our flexibility because as the prices of the batteries are coming down, we will have the flexibility to negotiate and best prices for our company. So it’s a continuous process. So I would not be able to divulge how much buses we have already completed orders. But it’s like we can say good number has been ordered. So we will actually ascend in the a quarterly basis. We review and then take a call.
Unidentified Participant
Okay. Okay. Got it. And just wanted an update on the MTC Chennai order. Like they have released a tender and I believe Electra is one of the shortlisted candidate. Right.
Sharat Chandra
Yeah. See, basically this is. We are not one elector has not won this order. It has gone to another competitor.
Kapil Singh
Okay. Okay. And other thing is.
operator
Sorry to interrupt, sir, but I may request you to rejoin the question queue. For follow up questions. Okay, thank you. Ladies and gentlemen. In order to ensure that the management is able to address questions from all participants in this conference, please limit your questions to two per participant. The next question is from the line of Aniket Madhavani from step two, Trade Capital. Please go ahead. Aniket, are you there? As there’s no response from this participant? Okay. Yes.
Aniket Madhwani
Am I audible?
operator
Yes, sir. Please go ahead.
Sharat Chandra
Yeah.
Aniket Madhwani
Sir, can you throw some light on the segment by revenue bifurcation for F26 27?
Sharat Chandra
So when we talk about overall segment, when we see a top line of over 2,000 buses, the insulator segment we are targeting about last year we did about 180 crores. We are targeting what could jump about 40, 50%. 40% is what the 35 to 40% is what we have seen a jump in insulator, but looking at the overall number, it will be less than 10%.
Aniket Madhwani
Okay. And the other segment which is insulator.
Sharat Chandra
Yeah.
operator
Thank you. The next question is from the line of Tom A. Cadavely from J Investment limited. Please go ahead.
Unidentified Participant
Yeah. Am I audible? Yeah, my. I have two questions. The first one would be is there a minimum threshold for order book to sales? And my second question would be what is the localization to import mix that we have?
Unidentified Participant
First question, what is the minimum threshold for?
Unidentified Participant
Is there any minimum thresholds for order book to sales? Yeah.
Sharat Chandra
Hear about the question at all. Because when we progress, there’s no correlation. See, we participate and once we get the contract, there is an LOE awarded to the operating company based on the LOE and the delivery schedules. The production is planned accordingly. We produce and then deliver the buses. So there is no minimum threshold. As such, there are timelines provided by the customer. So mutually as per the agreed timelines, we supply the buses. Second, as far as the localization content is concerned, companies basically comply with all the norms imposed by the regulators. As in. So we comply with all the norms.
And I think we have clarified in the past, we are on the localization is a continuous process except the battery and battery management system and some of the components relating to powertrain which are necessarily to be imported as of now. So other than this, we are developing local vendors and we are localizing the components.
Unidentified Participant
Okay. Okay, thank you.
operator
Thank you. The next question is from the line of Harsh Saraswat from Elegant Family Office. Please go ahead.
Harsh Saraswat
Hi. So we are fairly new to the company and wanted to understand if you could walk us through the commercial structure of these contracts like the wet lease model and how Oltra gets The payment and what is the working capital cycle like? That is my only question.
Sharat Chandra
Yeah, just as you are new to this company and due to this industry space itself, so this industry is still, we can say is at a nascent stage. So initially there were no takers from the lenders with regard to coming forward and lending the projects Olentra as such, the initial days have done a lot of demos across length and breadth of the country. Out of 40 plus stus we have done the demos and we have showcased our product. So earlier days it used to be a demand constraint, now no longer it is a demand constraint, it is supply constraint which is there.
And as far as the working capital cycle is concerned, it used to be very intensive, more than six months working capital used to be there. Now we are striving to improve the working capital cycle. It has reduced to almost. When we talk about 31st March, it came down to almost 60 days on an average we see the working capital to be anywhere between three to four months. The payment cycle, that’s where the payment cycle is concerned. The operating company, they own the fleet and operate based on kilometers run assured kilometers given by the contract. The end customer pays per km.
The other objective and the advantage is the NITI AAYOG when they devise the policy of GCC model they have introduced escrow mechanism so that the cash flows by the end customers within the STUs whose financials are not great are secured in the escrow account. So almost two months escrow amounts are deposited in the escrow account. So generally our associate company which is a sister company which is owning and operating, they also are able to collect the receivable within 60 to 75 days. So as far as we are concerned, the operating company, they own the fleet by means of a debt equity.
So all the major contracts which the group has won in the recent past, when we talk about MSRTC, about 5150 buses best the new contract which is 2400 extendable to 3000 numbers. The BST 2100 numbers, TSRDC about almost 450 numbers. All these contracts, the financial closures have been completed. It is in various stages of documentation. So we are seeing the improvement in terms of working capital cycle to come down from earlier four months to at least three months.
Harsh Saraswat
Okay, and in the event of a payment delay or order cancellation by the state authorities, does Electra also bear any exposure to it or it is the SPB which is solely liable for it?
Sharat Chandra
Basically the SPB is winning the contract. So as of now we are not seeing many challenges because it is mutually beneficial for both the companies to basically execute and comply with the contract norms because operationally it is quite economically remunerative for the HCUs to switch over to EVs. And our product is in terms of technology, we are proven in terms of performance. Electra buses have proven. We have done more than 44 crore kilometers across pan India and stus. Look forward for our product.
Harsh Saraswat
Right. Thank you so much and all the best for the coming quarters.
operator
Thank you ladies and gentlemen. We will take that as our last question. I would now like to hand the conference over to the management for closing comments.
Sharat Chandra
Thank you so much. We thank all the shareholders who have participated and have been very supportive in your company’s growth journey and the patience and faith imposed on your company. We expect good growth in the consolidated revenue and profitability in the coming quarters and in this financial year, which is going to be, in terms of numbers, significant growth compared to earlier years. Thank you so much.
operator
Thank you. On behalf of Electra, Green Tech Ltd. And Nomura. That concludes this conference. Thank you for joining us and you may now disconnect your lines.
Sharat Chandra
Thank you.