Olectra Greentech Ltd (NSE: OLECTRA) Q3 2026 Earnings Call dated Feb. 03, 2026
Corporate Participants:
Mahesh Babu Subramanian — Managing Director
B. Sharat Chandra — Chief Financial Officer
Analysts:
Unidentified Participant
Siddhartha Bera — Analyst
Aniket Madhwani — Analyst
Shubham Tamrakar — Analyst
Gaurang — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Electra Green Tech Limited Q3FY26 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 Star and then zero on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Siddharth Pera from Nomura. Thank you. And over to you sir.
Siddhartha Bera — Analyst
Yeah, thanks. Good afternoon everybody and thanks for joining the call. We have with us Olektra Green Text Management, Mr. Mahesh Babu, the Managing Director, Mr. B. Shara Chandra, CFO and Mr. Hanuman Prasad, Company Secretary and Legal with us to address your queries. So I’ll pass on to the management for some initial opening remarks and then we can open the floor for question and answer. Over to you sir.
Mahesh Babu Subramanian — Managing Director
Okay. Good morning. My name is Mahesh Babu. I’m the Managing Director for Electronics. Good afternoon everybody. I would like to give you a global brief of what is happening on the EV industry both globally as well as in India and particularly what’s happening in commercial EV segment before I give my views on the volatile green tech. The global EV fleet is projected to be about 115 million vehicles by 2026. It’s growing at 30% CAGR year on year. The global commercial EV CV market is also growing at about 20% CAGR in the past few years and expected to keep up that pace in the future as well.
The EV adoption is expected to displace about 5 million barrels of oil demand per day globally by 2030. That’s overall a positive news of electric adoption both in all the segments as well as commercial vehicle segment globally. In India landscape Indian EV industry is expected to grow at 45% CAGR much higher than global average up to 2030. In India the EV volumes are expected to reach about 5 million units by 2026 and about 15 million units by 2030. EV adoption will reduce about 14 billion US dollar of import. It will offset if we continue to grow at this rate by 2030.
The commercial EV segment have been clearly growing spot in India. Fast growing segment particularly EV buses are fast growing. Today we have about 16,000 electric buses already deployed in India. And the electric commercial vehicle segment has grown about 120% year on year. Policy support from Government of India like PME Busseva and also PME drive schemes launched by the central government have given multiple tenders on electric buses to be bought by state transport undertaking. And that is one of the business that we are in and that’s plays an important role where we stand as Volatra. Volatra so far from inception deployed about 3,600 plus buses on roads and 116 tippers.
We still have a very high order book in hand. We have run about 500 plus million green kilometers reinforcing our sustainable leadership in this segment. We have been number one in the market last financial year. Recently CESL have released a tender and we have become L1 in 1785 vehicles. We are working with the authorities to convert this into order in the coming months. And if you look at Olatra’s performance, we have been in the last two quarters have been consistently delivering quantity. Our numbers have gone up by 37% from Q3 previous year to this year Q3 from 282 to 385 vehicles.
Our revenues have gone up by 30%, our EBITDA has gone up by 17% and our PBT is about 5% and so on. So I would say that we have a strong delivery performance as well as financial performance in Q3. The key is consistent quarter on quarter delivery profitably. If you look at the market share of our products in the electric bus segment, in Q3 we have about 29% market share with the number one question of 399 vehicle registered in the market and year to date we have about 912 vehicles registered in the market with a market share of 24% plus.
So we continue to be number one in the electric bus segment and we are, if you look at our EBITDA margins around to the tune of 14.1% which is the best in the EV industry so far. And we continue to grow consistently quarter on quarter and we look forward to improve going forward as well. So with this I hand over the financial performance to Mr. Sharat Chandra, our CFO.
B. Sharat Chandra — Chief Financial Officer
Good evening everyone and thank you for joining us. We are pleased to report that company has continued to deliver steady growth in consolidated revenue and profitability for the Q3 and the nine months ended December 2025 as compared to the previous fiscal year. Before I take you through the financial performance, let me briefly highlight a few key developments. As indicated in our earlier earnings call, we began to see strong traction from Q2 with a meaningful ramp up in Q3 and this momentum has continued into Q4. The company has delivered healthy operating margins across both business segments.
The EV segment, the ramp up in deliveries has driven year on year top line growth of approximately 23%. Margins in this segment have seen some compression primarily due to product mix changes as we had highlighted earlier with increasing volume. Historical margin percentages are not sustainable though we continue to maintain healthy absolute margins. Fixed cost, particularly employee costs have increased in line with the scale up of operations. The Financial highlights for Q3 Electric vehicle deliveries stood at 385 units compared to 282 units in Q3 of last year representing a growth of 37%. Revenue for the quarter stood at 6.63.6 crore, registering 29% year on year growth driven by strong performance across both segments.
EBITDA is at 97.1 crore reflecting a growth of 19% year on year. PBT was 64.1 crore up by 3% compared to 62 crores in the corresponding quarter last year. PAD at 46.7 crores is broadly flat year on year. Correct. Earnings per share for the quarter was 5.65 compared to 5.64 last year. Flat for the financial ils for nine months. Revenues to debt 1,667.5 crores reflecting 23% year on year growth. EBITDA increased to 246.1 crore up by 13% compared to the same period last year. Year PBT was 166.3 crore growth of 5% year on year. Power stood at 122.1 crore, registering 3% increase over the previous year. Overall, our performance reflects strong execution, improving scale and sustained demand, particularly in the EV segment even as we consciously invest in people and capacity to support future growth. Thank you for your time.
I will now hand over the call to Nomura team for the Q and A session.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press Star and then one on their touchstone phone. If you wish to remove yourself from the question queue you may press Star and two participants are requested to use hand fits while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Aniket from CR Kothari Sunfense Stock Broking. Please go ahead.
Unidentified Participant
Thank you for letting me introduce you sir. Hello. My question is regarding to working capital cycle and how we can expect it going ahead into Q4 and for FY26.
B. Sharat Chandra
The working capital cycle we have been working consciously and it is improving quarter on quarter. The net working capital base is around 42 days with a good improvement compared to the previous quarter of the corresponding year. And we are working to reduce inventory levels, optimizing the stock levels. The receivable position is improving as our associate companies have got financial sanctions for the major projects. So we are working on all aspects of working capital and we keep improving on the working capital cycle. And consistently we are looking at about two months is what the cycle we are looking at overall in the midterm.
Unidentified Participant
Okay. And my second question is regarding to the delivery of the buses. We are on Track to deliver 2000 buses for FY26. Whereas currently the 9 months number is only around 881. So any suggestions regarding to the 2000 mark delivery? Any changes to that number? Sir.
Mahesh Babu Subramanian
This is Mahesh Babu. Yes, so we are taking a very ambitious target of 2,000 vehicles. As I told you, we are already number one in the market. The delivery of vehicle depends on market absorption, our capacity and also other ecosystem development. So we continue to aspire to deliver so much vehicle looking forward. But as you know already I have given an interview in the media telling that we are looking at between 1500 to 2000 vehicles. That would be the reality in the last quarter.
Unidentified Participant
Thank you. And if I may ask one last question, is that okay.
Mahesh Babu Subramanian
Yeah, please go ahead.
Unidentified Participant
So it is regarding to the supply chain issues. Are we facing any. Currently any supply chain issues rather than the ecosystem issues which were already highlighted. Highlighted in the previous quarter?
Mahesh Babu Subramanian
At least in the. In the last quarter we have not had any supply chain issues and we don’t expect that to happen in the coming quarter as well.
Unidentified Participant
Understood sir. Thank you so much for the input, sir. Thank you so much.
Mahesh Babu Subramanian
Thank you.
operator
Thank you. Our next question comes from the line of Preet from Pinkred amc. Please go ahead.
Unidentified Participant
Thank you for the opportunity, sir. First I would just like to understand more about the business. I just want to understand how does SPV actually works. What would be the unit economics for the spv? And there are different percentage ownership in the different spv. So what determines exactly how much percentage will you keep in that particular spv?
B. Sharat Chandra
See as far as SPV is concerned, generally our. Our philosophy is to manufacture, supply and take care of the maintenance of buses. But in certain tenders the conditions are that where OEM are also required to have a stake. So accordingly in such scenario we invest. So we have about eight associates where we are having a 26% stake and one subsidiary where we have 51% stake and one JV where we have 100% stake. Other than this we continue to work on this model, unless there is a necessity in the tender where Olektra is required to participate in the spv.
Unidentified Participant
And about unit economics are SPV profitable or how is the typical unit economics. For the same
B. Sharat Chandra
generally as a group. Unless it is profitable, we don’t enter into any new tenders with a minimum IRR of more than 15% is what we look at at the SPV level.
Unidentified Participant
Okay, thank you. And next question is on the number I’m seeing that your insulator business is growing rapidly and margins of the same EBIT margins which you report it was earlier 26% which has increased to 30 to 33%. So just wanted to have what kind of growth do you expect coming forward and are these 30 to 33% sustainable?
B. Sharat Chandra
See basically insulated division again the margins we have concentrated on exports. So exports are giving healthy margins. So due to product mix in this quarter the margins have improved but we continue to strive to improve margins consistently. We are seeing growth and I think it will stabilize around these levels margins. Again it depends on the mix between domestic and export.
Unidentified Participant
What is the difference between domestic and export in insulated business?
B. Sharat Chandra
So about what currently about 40% is export. Now in the turnover what we have. Done. About 2 million growth is the top line data division. So I don’t have a breakup of. I’m not able to dwell into the details. So I’ve given a
Mahesh Babu Subramanian
generally what CFO is saying is the margins on this quarter felt due to some exports specific because it comes under tender and we win with competition. So it goes by competition to competition. So between last quarter and this quarter our margins will remain between the two quarters. It’s not expected that it will go further and will not be retained the same margins on insulator quarter on quarter. So we are very happy this quarter we are able to realize good EBITDA margins due to some few export margins. So we will strive towards it.
But the expectation would that we will the market is give margin between the 25 to 30% region.
Unidentified Participant
Got it. And what would be your order book in the inflator business? What kind of growth do you expect. In the next two years?
B. Sharat Chandra
About 300 crore crores plus is the order book as of now. And we continue to grow in this business. Compared to last year we did about 180 crores top line. This year we are expecting about 300 crores top line. So with a 15 20% growth year on year is what we are targeting.
Unidentified Participant
Thank you sir. I’ll join back in the queue.
operator
Thank you. The next question comes from the Line of Aniket Madhwani from Step Trade Capital. Please go ahead.
Aniket Madhwani
Hello sir, I’m audible.
operator
Yes sir, you’re audible. Please go.
Aniket Madhwani
Yeah, so firstly I just want the clarification on the financials. So here I can see despite growing 28 29% top line year on year, if we compare to the last quarter of the. Sorry, same quarter last year and coming down to the bottom line we can see here the numbers are flat. So what are the reasons behind? Are you facing any challenges to maintain the margins?
Mahesh Babu Subramanian
Now see I think this is Naya share. I’ll explain the business strategy perspective. So last year if you look at it, we were primari been in the 12 meter bus segment. And if you look at this year we are entering into 9 meter we have delivered about trucks. So this quarter we have about 24 trucks delivery, 50 plus 9 meter delivery and remaining is a 12 meter bus. While the primary product last FY24 was related to 25 was related to QT was related to 12 meter bus. So basically what happens is in a stabilized segment while you look at bus segment bus or the division has 12 meter 9 meter and you have now trucks on pilot basis we have deployed. So each one will have different margin.
So some of the products are for the future. It is just entering into the new segment of ev. So the margins will be less when it is stabilized like the 12 meter bus product. Then we will get a reasonable margin. So that’s why I would say that we are still growing at 30% revenues. EBITDA is good, 17% for US growth in EBITDA while yeah, so that’s what 19%. Almost 20% growth in EBITDA is there. While the bottom is we have to work on new products and hence depreciation will come into picture and we borrow for the plant what we have to do and then interest rate into it.
Aniket Madhwani
Okay, okay. So. So can you just give me the bifurcation of 282 buses delivered? I mean I just wanted to know how many 9 meter buses are delivered, how many 12 meter buses are delivered and the margins that you maintain in each of your products.
Mahesh Babu Subramanian
So very specifically I will not have in hand but generally I’ll tell you out of 282 last quarter 272 was 12 meter bus, only 9 meter was 10. Whereas this quarter out of 38524 truck and about 519 meter was delivered apart from 312 meter. So that make the proportions differently just to give you a reasonable thumb numbers right in front of you that works and thank you.
Aniket Madhwani
One Just last question. Previously you mentioned that you have around 10,900 birth tender. So is there any update on regarding that?
Mahesh Babu Subramanian
So the 10,900 bus tender was already concluded and we have become L1 in 1785 buses. That’s what I have told in the brief. And this. We love to work with the authorities. To convert into order. It is expected another three months this process will continue. And we hopeful that we’ll get that order going hours. See. You know we have declared the DCCO for our phase one of the plant. It is for 2,500 vehicles per shift per year capacity. And we can do double shift to achieve about 5,000 per annum if needed. We can in in fact increase the capacity as we need to higher numbers depending upon the market absorption. We can do that.
Aniket Madhwani
Okay then. Yeah, that’s it.
Mahesh Babu Subramanian
Thank you.
Aniket Madhwani
Thank you.
operator
Thank you. The next question comes from the line of Akash Srivastava, an individual investor. Please go ahead.
Unidentified Participant
Yeah. Hi sir. Good afternoon. Thanks for giving me the opportunity. I just want to understand. Is there any specific reason why deliveries in Jan was only 55 numbers as is what shown in the Wahan portal app.
Mahesh Babu Subramanian
See, the Wahon portal alone is not the number we are delivering. Because Telangana is not part of the Wahan portal. January we delivered we build around 115 vehicles. Many of them are Telangana. So you have to look at one plus Telangana that is available in a separate site. That depends on where the other competitors deliver the vehicle.
Unidentified Participant
That is okay. But still if you are saying that we are having a capacity of 200 plus numbers. None of the months that I’ve seen you’ve been able to reach even 150. So is there any specific reason why? I mean you may say that yeah, the market is not absorbing and all those things. But any other reason, I mean that you want to share with us. Except this.
Mahesh Babu Subramanian
See I just want to give you. First we love to understand that we are number one month on month, quarter on quarter, year on year for the last two years. So that means it’s very clearly market can observe. If you look at the market size of electric vehicles, buses last year was about 3,800 vehicles, right? So market can absorb only that much depending upon electricity, finance availability, depot readiness, stu route finalization plus our manufacturing capacity. So what I can tell you is we are number one in terms of delivery of electric buses in the market. If market can absorb more, we are also driving like you.
We are also driving the market to absorb more. And when we drive it we are number one and we wish that they will be able to deliver more. So while the capacity is for the future coming when the market is ready to absorb our efficiency still remains at optimum that we are able to deliver when we want it. Because our pipeline is less than 15 days in terms of vehicle finishing to the deployment into the depots and to the operations. That’s where we are still at number one in terms of delivery, operations and optimization of the operations which market can absorb.
Unidentified Participant
Sure sir. But frankly, I mean with respect to what the markets have told today. You might have understood how the investors are feeling about the reason that we have. Right. Nonetheless, my second question is with respect to Q2I, I suppose we delivered around 330. 340 odd buses. Right. In Q3 we have delivered around 385 numbers. That’s what we have been told. But in terms of top line growth I can see just maybe 6 or 7 crores difference. So is it because of the product mix between Q2 and Q3 50 numbers difference but the top line is only maybe 6 crores.
Mahesh Babu Subramanian
Q3 we have delivered 375 vehicles.
Unidentified Participant
Okay.
Mahesh Babu Subramanian
Q4, Q2 we have delivered 375 vehicle and Q3 we have delivered 385 vehicles. So it’s only a 10 vehicle.
Unidentified Participant
Okay. Okay. Okay. Okay. I, I, I mean that then my mistake. Sorry. Yeah, that’s it. From my check. Thank you.
Mahesh Babu Subramanian
Thank you.
operator
Thank you. The next question comes from the line of Shubham Samrakar from Alturas. Please go ahead.
Shubham Tamrakar
Hi sir. Am I audible?
Mahesh Babu Subramanian
Yes, please.
operator
Yes. Yes.
Shubham Tamrakar
Thank you. Sir, I have a question regarding operational cost. So given that we are making investment and we’re expecting revenue growth over the period of time how operational cost will change? Will it increase? The same as revenue will increase will have a cost advantage.
Mahesh Babu Subramanian
Till now we have been investing in the plant and our operational cost is to make this monthly production of. We are optimizing manpower and other services to the tune of what we are making going forward. Capital investment will not be very intensive till we achieve 5000 vehicle per annum. It’s only a variable cost which will increase.
You have to increase manpower in two shifts and deliver the products and other things. Capital will not be exponentially required or proportionately required. We need only to maintain that and deliver. And capex investment will be not needed much till we achieve 5,000 products. But variable cost of manpower increase and others will be like electricity, manpower, water consumption will be proportionate to the number we are making.
Shubham Tamrakar
Okay. That was Helpful. And do we have any CAPEX plan regarding for Capex in the next 12 years?
Mahesh Babu Subramanian
Yes, of course. Automotive industries, capital intensive. You all know that we are developing products as you know we are developing new platform 12 meter we are developing new platform 9 meter and we are entering into the truck segment so we have done a pilot with 116 vehicle now but the market is going to grow so we have to get prepared with multiple products in products. So the capex would be for developing new products for increasing the new markets and entering into new segment and increasing our volume because if we continue to sell in the same segment we will not have much growth and you all want exponential growth so that will come from new products and we continue to invest on our new products technology in the coming next two years.
Shubham Tamrakar
Do we have any numbers regarding CapEx like this?
Mahesh Babu Subramanian
We are working on it. So what I can tell you is we will be investing about 300 to 350 crores in terms of capex for new product development in the coming year.
Shubham Tamrakar
Okay. And how will capitalize this?
Mahesh Babu Subramanian
It will be over a period of two years.
Shubham Tamrakar
Okay. Okay, thanks sir, regarding the. I just request one thing that it would be great if you share in your presentation also regarding the or the mixed machine 9 meter twin flux which were delivered every quarter that would be very helpful for us to understand.
Mahesh Babu Subramanian
Okay, we’ll try to add that in the future.
Shubham Tamrakar
Do you have any visibility right now. Like in the next. Like next year? How, how the mix will change
Mahesh Babu Subramanian
depending upon which stus which depot getting ready But I can tell you that in the Q4 we will have a reasonable mix of coach and 12 meter. That’s what we are expecting as per our plan. But if any suggest you suddenly ask 9 meter we can’t say no. So we’ll have to get prepared for that as well.
Shubham Tamrakar
Okay. Okay. Yeah. Thank you. Thank you sir. That was from my second
operator
thank you. The next question comes from the line of Sunil, an individual investor. Please go ahead.
Unidentified Participant
Hi, am I audible?
operator
Yes sir, you’re audible.
Unidentified Participant
Yeah. So actually like we have a plan of deploying the robotics right? So by when we can complete the robotic deployment for production.
Mahesh Babu Subramanian
See we have decided to do a semi robotic line. The semi robotic line will be ready by end of this calendar year and which will be last quarter of the coming financial year. The phase one, whatever we have declared capacity is without the semi robotic line. The semi robotic line will come as part of our new products which are coming to handle the 12 meter 9 meter truck everything together we need that for that.
And that will be ready by last quarter of the coming financial year. So any new product launches like trucks and cars, anything. Yeah, we will come back to you. It will be too premature to tell what it is now. So you know, as per guidelines, we will come back to the market whenever we are ready with the products in the future. Okay.
Unidentified Participant
Thank you.
operator
Thank you. Your next question comes from the line of Gaurang from Utility Unified. Please go ahead.
Gaurang
Good afternoon. Am I audible?
operator
Yes sir, you are.
Gaurang
Yeah. Thank you for giving the opportunity. So with reference to the Indian Express article which is dated on October 30, 2025, Mumbai Bhd is exploring legal route for non delivery of electric buses. So can the management on record confirm that it’s BST which is not handing over the depot or is there some other issue with respect to the two orders. The first order which is of 2100 buses and the second order which is of 2400 buses. And why I’m asking this question is because as far as I know that in last six months we have hardly done any deliveries to best approximately say 200 or 300 buses in last six months.
Which is a little bit disappointing and concerning as well. So just want to hear from the management about this issue.
Mahesh Babu Subramanian
Okay. Firstly, we have not got any legal notice from bst. Bst, we have engaged on two, three fronts. It’s not about depot readiness or something. On the best front there is a request from us to best that the electricity consumption and the loading pattern of the vehicle is much, much higher than the tender requirement. Assume tender is asking for 58 people. We are seeing 102 plus people coming into the one because of which there is a substantial electricity consumption which we have represented to them to compensate by which we will be able to improve our delivery.
So that discussion is going on with bst. I hope they will resolve that quickly. Because as a entity, as a investor to you also, we will not be able to do any order which is not as per tender and which is lost to the company. So we are continuously engaging with BST to highlight this issue. And they recognized and accepted. Yes, the consumption is higher due to utilization of the bus with higher capacity than the tender requirement. We are only finding it how to resolve it within the legal framework. Once they resolve it, our number delivery will be faster than expected.
Because we don’t want to lose money without this resolution.
Gaurang
Thank you so much sir for the clarification. And my only other question is. So there’s an upcoming CSL tender of 3,000 plus buses for various cities like Mumbai, Pune, Hyderabad. So is Electra going to participate in that tender as well?
Mahesh Babu Subramanian
Yes, we are right now planning to participate in the coming CSL tender.
Gaurang
Okay, so thank you for the gratification. Wishing you all the best for the final quarter and the years coming.
Mahesh Babu Subramanian
Thank you. Thank you.
operator
Thank you. Your next question comes from the line of Sandeep, an individual investor. Please go ahead.
Unidentified Participant
So considering our long order book how. Is our capacity creation planned in future? Because still we have not achieved this 2500 completely.
Mahesh Babu Subramanian
Hi, thanks for the question. Right now we said we have a capacity about 2,500 per shift. While the investment and civil and the equipments are prepared for 2500 we have manned only to the requirement of the capacity which we are producing. So we will utilize the full capacity of 2,500 per shift. According to me, when the market can absorb in the coming financial year and FY27 that’s what we are expecting. And as you know any auto industry capacity grass capacity is X. Normally industry work around 80, 80 to 85% of the net capacity because there will be day to day supply chains and matching and things like that.
So normally auto industry works on the grass capacity to the tune of about 85% of net capacity.
Unidentified Participant
Okay, thank you.
operator
Okay, thank you. The next question comes from the line of three from Incred amc. Please go ahead.
Unidentified Participant
Thank you for the opportunity. Once again. Sir, you have mentioned in the annual report of around 750 crore growth of capex which we were planning out of which how much has been done and how much we are planning in next two years. And is this apart from the 350 crore capex which we have mentioned to the previous participants?
Mahesh Babu Subramanian
Okay, just to clarify the 750 crore was the intent to invest for the complete capacity to achieve 10,000 volume in the. In the. In the production capacity. However, as I said we have decided to optimize the investment and we have already achieved phase one. So we have decided to do in phase one phase two, phase one of 2500 into two which is 5000 is achieved now and it’s getting into production. We will only kick off the next phase of investment of the remaining investment only when we achieve this 5,000 in the market net gross. And then because we need only the land is available we can have.
We can build our additional line within a period of 12 months. So we’ll kick off that once we see the market in the future.
Unidentified Participant
Okay, got it. And how much capex you have done till now till first nine months in FY26.
B. Sharat Chandra
It’s about closely about 400 crores.
Unidentified Participant
How much? Sorry, I missed
B. Sharat Chandra
about 400 crores.
Unidentified Participant
And my next question is on the line of quarter three numbers we have seen that the employee cost has been reduced drastically from 202530 crores to 20 crore. What was the reason behind the sale?
Mahesh Babu Subramanian
Manpower cost you are asking?
Unidentified Participant
Yeah, yeah.
Mahesh Babu Subramanian
See what we have done is earlier we used to pay for the service manpower which used to be in the market. Now we find that they are technicians and available in the depot. And by directly our customer paying for that such technicians we are able to save some gst. So we have asked the customer to directly pay such technicians in the depot.
Unidentified Participant
So are we giving that money or they are bearing customer is bearing that money.
Mahesh Babu Subramanian
Now whatever they were supposed to customer is supposed to pay us for this employee. Now they are paying directly for this technician. So that we will get will not have any GST impact on that. So it will come. It will go from our one. It will go to customers payout there and they will pay the remaining to us. So net net there is no impact to us. It is a payment method directly by our customers to technicians in the respective deposits us.
Unidentified Participant
Got it sir. And my another question. Hello.
Mahesh Babu Subramanian
Yes,
Unidentified Participant
hello. Yeah, my other question is on the line of debt. Despite having lower debt on the balance sheet we have a higher finance cost of around 2025 cr per quarter. 20 cr 1520 crores per quarter. Can you explain the nature of this payment?
B. Sharat Chandra
Basically we have availed term loan. So those interest costs are now coming in. So pre capitalization interest has been capitalized. Now post capitalization the interest cost is coming to the P and L. That is one aspect. And then one of the primary interest cost is all the LC discounting and BFS discounting. So we are working on it to reduce those costs in the in the near future. We are trying to optimize the mechanisms and we are expecting this some improvement in the interest cost. In terms of rate.
Unidentified Participant
What is the average rate on which we get a term loan?
B. Sharat Chandra
It’s about 9 plethora.
Unidentified Participant
Okay. Thank you sir.
B. Sharat Chandra
Thank you.
operator
Thank you. Your next question comes from the line of Aniket from CR Kothari Suns and Stockbroking. Please go ahead.
Unidentified Participant
Hello. Thank you for having me. Once again my last question would be regarding to the. Hello.
Mahesh Babu Subramanian
Yes please please go ahead.
Unidentified Participant
Hello.
operator
Please go ahead. You are audible.
Unidentified Participant
Yeah. So my last question would be regarding to the facility coming online. What would be the expected increase Tentatively regarding the depreciation in the next few quarters.
B. Sharat Chandra
It is Likely to be this quarter. We have done. We have a depreciation about on a standard basis of a 9.2 crore. So it will be slightly 10% growth the deposition once we complete all the capitalization.
Unidentified Participant
Thank you so much.
operator
Thank you. Your next question comes from the line of Rushab Sanghvi from Oakland. Please go ahead.
Unidentified Participant
Thank you so much for taking the time. I had a question on the private sector participating in the electric bus movement. So far most sales we’re seeing is with the public sector. Can you comment on why the private sector has been little slow to adopt electric buses so far despite. Despite favorable tco?
Mahesh Babu Subramanian
Yeah, so that’s a very good question. Because right now the PME drive, PME Seva, everything is favored towards subsidy towards state government undertaking. There is no subsidy from for the private sector. However, TCO for private sector which is intercity is very favorable. You know, intra city is not privatized so much.
In many cities intercity is privatized. Intercity. There are customers in private. For example, the fresh bus is running our vehicle in Hyderabad to Bangalore the route and they are successfully running. They have run about 8 lakh kilometers already with our vehicle. They are profitable. And one of the challenges what I understand from them is private players who are in the operations of the buses are not worth enough to take bank loans for a large number to fund the EV buses. So we are also working with the government as well as some private entities who will fund them.
For example, there are players who are NBFCs who are non NBFCs like Macquarie Capital have given about some line of credit for EVs so we are working with them. Slowly the shoot is coming. We have delivered about eight buses to Microsoft for employee transport for a private player. In this quarter there are some minor shoots I am seeing it will take about a year or so as per me for this finance sector to gain confidence on the private players. And hence it will become an adoption kickoff.
Unidentified Participant
Thank you sir. And one last question from my side. In the recently announced budget, it seems like only 1500 buses are accounted for in PM Giseva in FY27. Given that naturally more than that has been more than that number of buses have been tendered in the last year. Can you comment on why this budget allocation is so low?
Mahesh Babu Subramanian
The budget allocation is for 1400 buses which they have tendered in PME Seva. PME drive is different. At 10,900 is a PME drive. PME drive will get a direct subsidy of 35 lakhs or 25 lakhs depending upon the vehicle. When STUs deploy the buses PME Seva they will get about 24 rupees per kilometer.
Approximately. I think so. So every. Every month, every year for 12 years. So it’s a two different schemes.
Unidentified Participant
Got it. And even in ECM there’s also a PM payment security mechanism. Right. So is there a separate budget allocation for this? For payment security mechanism?
Mahesh Babu Subramanian
There is no need for a separate budget allotment. Because the payment security mechanism is if the state government doesn’t pay central government has the authority to intervene through RBI from the central government allotment to the state and direct the fund and pay it to the operator. That’s the security mechanism. It’s mainly a mechanism for giving confidence to the financiers who are financing this. Financing these projects for our operators. I don’t think I have any case where stus have never paid any operators to. They only delay it. But default. I have not heard in my lifetime government defaulting anybody any.
Unidentified Participant
Thank you so much.
operator
Thank you. Your next question comes from the line of Rahul S From Sapphire Capital. Please go ahead.
Unidentified Participant
Greetings. Can you hear me? Hello. Yes, hi. So firstly. Yes. Hi sir. So I’m not able to understand. So you say you have a order book in hand of nine 9,400 plus buses. Correct?
Mahesh Babu Subramanian
Yes, please.
Unidentified Participant
So these. If these are confirmed orders. I’m just trying to understand then why is there no, you know, why are we not selling as much in each quarter to complete a target of you know like 2000 units in FY26 which you had given. And if you’re still guiding for the same like around 1500 to 2000 vehicles in the year then are you very confident that you will be able to cover up in quarter four? I’m just trying to understand how it works in a delivery.
Mahesh Babu Subramanian
Yeah. So I answered this. I’ll. Earlier I will again answer it. Because I would request all of us to hear as well. See the order book gives you that if the depots and the ecosystem is ready then we will be able to deliver to that extent. So if you say 9,000 order book that means we have two two and a half years order pipeline available. Second, you can’t deliver 9,000 immediately. There are cases where our competitors had 600 buses waiting for six months in Delhi for deployment. 600 buses is close to 750, 800 crore. We can’t afford us Volatra green tech to keep 800 crore wait for six months.
And then our working capital and all this will become a headache. So the reality is we have to make the vehicle what market can absorb. And if market can absorb more, we will make more. So we are prepared from plant perspective that we can serve the market to the need what they want. And we are also prepared from front end that we have enough orders so we don’t struggle for next one or two years to get more orders to deliver what plant capacity needs to be there. So again that’s why I said we are number one in bus registrations in India year to date.
That means we are delivering more buses than any competition E buses, electric buses than any competition in India. So that clearly says that we are efficient, better and working, managing working capital well and also serving the market well. So this is how you should take, not just go by the order book number.
Unidentified Participant
So, so if you say
Mahesh Babu Subramanian
it’s like. Airline industry, Boeing as a 7,000 order, they will deliver for next 15 years. They can’t deliver, they can’t increase the capacity and deliver Boeing in 15, 15 in one year. So that’s, that’s how you have to look at.
Unidentified Participant
Okay, so for quarter four, you are saying you’ll be able to complete the yearly target. Is that because of the market, you know, acceptance of deliveries or is this just your, it’s still just your, you know, view that if the market gets better and is able to observe then only we deliver or is that a surety?
Mahesh Babu Subramanian
So my, our view is right now we’ll be able to finish about between 1500-2000 buses. That is the target fish market will observe in this quarter. But still our aim is always we want to be number one in the country.
Unidentified Participant
Okay. And with regards to the insulator business, you said this year you plan to achieve or you expect to achieve 300 crores top line, correct?
B. Sharat Chandra
Yeah, that is the expectation.
Unidentified Participant
Expectation. And what about like. So the yearly growth, how much did you say? Which you can do here on you in that business.
B. Sharat Chandra
See about 10 to 15% is what the growth we are expecting. This, this is still common push on electrification. So we see good potential.
Unidentified Participant
Yeah, please. Please. Okay. And overall consolidated margins, any range you would like to give steady state.
B. Sharat Chandra
I think we have mentioned in the past, we have mentioned in the past we are basically working on healthy operating margins. We continue to deliver healthy operating margins. Over the long term it is expected to stabilize around 10 to 12%. Currently we are at 14 plus percentage.
Unidentified Participant
Okay. Okay, sir. Thank you. And all the best.
Mahesh Babu Subramanian
Thank you.
operator
Thank you. Your next question comes from the line of Kaura from utility Unified. Please go ahead.
Gaurang
Hi, am I audible?
operator
Yes sir.
Mahesh Babu Subramanian
You are
Gaurang
yeah. So my question is with respect to the evolving electric vehicle technology, sir. So there are largely four things which I can think of. Firstly, there are solid state batteries which are coming. Second is sodium batteries are coming. And third is megawatt charging which is already established in China. And then there is battery swap which is now quite getting quite trendy in China. So my question is sir, how is Electra foreseeing this? Four things especially in the commercial EV segment?
Mahesh Babu Subramanian
Yeah, thank you for the question. Out of investments and financials. Actually you are right. The EV industry has lot of innovations going on parallel while the production production of existing technologies continue. So we are closely monitoring 3, 4 technologies. As you said, Solid state battery, sodium ion battery. You know that CATL has productionized sodium ion battery for commercial applications. But most of them are in a pilot stage and most of them are in a stage where it is at primary production stage. It has not reached the mass production stage. So we are closely monitoring this technology we have now.
operator
Sorry to interrupt. Garang sir, the line for the management has been dropped. Please stay connected while we reconnect the line for the management. Ladies and gentlemen, thank you for patiently holding the line for the management has been reconnected. Yes sir. Please go ahead.
Mahesh Babu Subramanian
Hi, this is my share again. Sorry, I don’t know what happened. Technically the line got cut. So I was talking about sodium ion. I’m talking about this solid state battery. We have a very clear technology evaluation process where we evaluate technology at what stage they are in, whether it is in primary stage, pilot stage, pre production stage and mass production stage. So right now lithium ion batteries are in mass production stage. Most of the other technologies you said are in pre production stage or at pilot stage. So we will constantly monitor and we can plug in and change them as we want.
And clearly we will have a plan to de risk our business in case of any change in technologies or change in systems. We are well prepared to handle it. Hello.
operator
Thank you sir. The line for the current participant Mr. Gaurang has dropped from the queue. We’ll move on to the next question. Our next question comes from the line of Subham Tamarekar from Alturas. Please go ahead.
Shubham Tamrakar
Thank you for giving this opportunity once again. Sir, I just wanted to understand. Again on Capex I just have little bit. I want some little bit clarity more on that. So you said 3, 300, 350 crore in capex in the next two years, right?
Mahesh Babu Subramanian
Yes, on the new products.
Shubham Tamrakar
On the new products. Okay. And our capitalization plan for the same.
Mahesh Babu Subramanian
Yes, we’ll capitalize it here on here.
Shubham Tamrakar
Okay? Okay. And say one more thing. Given that our product mix is changing like we are changing our product mix, so how this will affect our EBITDA margins in the next two, three years.
Mahesh Babu Subramanian
As CFO has already said, the auto industry is at a 10% EBITDA level. And you know, most of the EV our players are much lower than that. We are very happy because of our product. We are able to maintain about 14% in long term we are looking between 10 to 12% as margin as a business. When we grow high, we can’t expect high volumes and high margin business. There is no such business available.
So we’ll be more and more closer to the industry or better than industry. All that I can tell you is we’ll always be better than the industry. But going forward, when the volumes grow up and we become main players like diesel vehicles, if your diesel vehicle is selling about 100,000 vehicles, we will inch towards it as industry. When we go towards it, the margins will shrink but absolute numbers will be very high.
Shubham Tamrakar
Okay, thank you.
operator
Thank you. The next question comes from the line of Preeth from Incred emc. Please go ahead.
Unidentified Participant
Thank you for giving me opportunity. Once again, my last question, one more question would be on the line of buses guidance for the delivery and next year, what we are expecting. Like for example now management has guided off around 1500-2000 buses delivery by the end of by FY26 and in 10 months we have done around 1100 buses. So are we expecting more than 200 buses delivery per quarter per month in next two months.
Mahesh Babu Subramanian
So that is our aim. So we are looking at something like that. What you are speaking for next year.
Unidentified Participant
And what are we guiding? What are we guiding for next two years? 26 and 27. What are our estimates?
Mahesh Babu Subramanian
See, I told you. The EV industry is at a CAGR of 30% plus and we will be better than that. As olatra. In the last three years we have been outperforming the EV industry in terms of the segment where we are in. Our aim is to continue to do that exact number. I don’t want to put some number on the table because there are a lot of research work goes on market adoption and how we are going to question we’ll continue. Our aim is to continue to be number one and outperform market in terms of CIGR growth.
Unidentified Participant
Thank you sir, that was helpful.
Mahesh Babu Subramanian
Okay, thank you.
operator
Thank you. The next question comes from Gaurang from Utility Unified. Please go ahead.
Gaurang
Am I audible, sir?
operator
Yes, sir you’re.
Gaurang
Hello. Yeah. Yes sir in the recently conducted a Telangana Rising summit we had seen electron the MIL Group showcasing a car and that car was very much similar to a Chinese car called a Skywell ET five. So my just my request is that if Electra or MIL group is venturing into EV we can explore more key important key OEMs like Xiaomi. Then there is Neo, then there is Xpeng and then there is BYD. These are like top four of the Chinese OEMs. So my request you to sir is that we can explore partnership with these four companies.
So sir, any comments on that?
Mahesh Babu Subramanian
No. Thanks for your suggestion. There is no comment on it. I only thank you for giving such suggestion. Okay, so thank you.
operator
Thank you. The next question comes from the line of Aniket from CR Kothari Suns and Stockbroking. Please go ahead.
Unidentified Participant
Thanks for giving me a chance. Once again my final question would be regarding to the current nine months order books. What are. What are the numbers which are where are we standing right now in terms of order book?
B. Sharat Chandra
In terms of order books we have 9,000 orders pending orders we have delivered till now more than 6,000 3,600 numbers. So and as already clearly given message by our md so the deliveries will be in line with the adoption, in line with the readiness with the depot infrastructure, everything ready so we are capable of delivering as per the market adoption.
Unidentified Participant
Thank you so much for the prompt answer sir and wishing Olekta the best quarter end.
B. Sharat Chandra
Thank you. Thank you.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the Electra management for closing comments.
B. Sharat Chandra
Yes, in conclusion, we would like to thank all our shareholders and stakeholders for the continued support, patience and confidence in the company’s growth journey. As we move into quarter 4, we continue to see healthy demand momentum, particularly in the EV segment supported by the ongoing ramp up in deliveries and stable order visibility. We expect this momentum to translate into strong sequential performance and revenues while margins are likely to remain broadly stable, factoring in product mix dynamics and operating leverage from higher volumes overall for financial year 2523, we remain cautiously optimistic and expect to deliver healthy growth in consolidated revenue and profitability driven by execution discipline, improving scale and sustained demand across our key segments.
Before we close, I would like to highlight that some of the statements made today are forward looking in nature and are based on our current expectations and assumptions. Actual results may differ materially due to various risks and uncertainties including market conditions, supply chain dynamics, regulatory changes, other factors beyond the company’s control thank you once again for your continued support.
Mahesh Babu Subramanian
Thank you, Indus. Thank you. Thank you for your continued support to the company and the management.
operator
Thank you. On behalf of olektra, Green Tech Ltd. And Nomura. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.