Olectra Greentech Shares Soar 20%: Profit-Taking or Continued Rally?

Olectra Greentech has been in the spotlight after its shares surged nearly 20% in just three trading sessions, climbing to a record high of around ₹1,590 (MSN, July 2025). This electric bus maker, known for supplying vehicles to several state transport units, suddenly became one of the most talked‑about names in the stock market.

We’re now asking the same question most investors are thinking: Is this the moment to lock in profits or stay invested for a bigger rally ahead?

This sudden jump didn’t happen by chance. Strong financial results, a growing order book, and fresh government tenders for electric buses are pushing confidence higher. At the same time, technical charts show the stock might be entering overbought territory, a point where quick corrections are common.

In this piece, we break down the factors behind the rally, weigh the risks and rewards, and see what the numbers suggest for both short‑term traders and long‑term investors.

Recent Share Price Movement & Technical Landscape

Over three days, the stock jumped around 19.8%, hitting ₹1,590, and even after a slight fall, it remained over 16% up at ₹1,550 by close. Volume spiked sharply; delivery volumes leapt 617% above the five-day average, showing strong investor action.
Technically, the stock is trading above all key moving averages, 45, 10, 20, and up to 200-day SMAs. The 14-day RSI touched 82, signaling overbought territory (a caution zone begins above 70). AR Ramachandran notes resistance sits at ₹1,555, while support lies near ₹1,33; a breach below could push the rice down toward ₹1,120.

Catalysts Behind the Surge

Strong Business & Financial Growth

For Q4 FY25 (ended March 2025), Olectra reported a 39% rise in PAT to ₹20.69 crore. Revenue grew 55%, fueled by 67% higher deliveries, 219 EVs vs. 131 in Q4 FY24. For the full fiscal year, PAT jumped 77% to ₹139 crore, while revenue climbed 56% to ₹1,802 crore. The firm has 2,718 total EV deliveries and a 10,022-bus order book in hand.
Olectra introduced its Blade Battery technology during the Bharat Mobility Global Expo 2025. It promises longer range, faster charging, and improved safety, signaling an innovation push by the company.

Government Tenders & Policy Tailwinds

In April 2025, reports suggested the central government planned a tender for 10,000 electric buses under the PM E‑DRIVE scheme, offering ₹3,000 crore in subsidies, limited to ₹35 lakh per bus.

This lifted Olectra shares by up to 11% in early trading. Analysts estimated up to 18% upside for Olectra based on this development.
Other states tenders have added to the momentum. The company remains involved in major public transport electrification across Telangana, Maharashtra, and Himachal Pradesh.

Innovation & Capacity Expansion

Olectra is increasing its manufacturing setup and investing in new tech. Chairman KV Pradeep emphasised fast scaling and innovation, especially via the Blade Battery at the expo. These moves add confidence in their ability to serve large state tenders and meet growing demand.

Arguments for Profit‑Taking at Current Levels

The sharp 20% jump, combined with an RSI close to 8,2, suggests investors should be cautious. Analysts consider the daily resistance of ₹1,555 a potential profit-booking zone. A close below key support at ₹1,338 may drag the stock to near ₹1,120.
Also, volatility in EV-related stocks is real. A few months back, Olectra fell sharply after media confusion over a ₹10,000 crore Maharashtra contract, though the company later clarified that no official cancellation was sent to its SPV. Such policy or procedural risks can unsettle sentiment quickly.

Arguments for Continued Rally

On the bullish side, Olectra’s fundamentals are solid. Rising deliveries, higher revenues, and a solid order pipeline suggest sustained business growth. Government policy continues to support EV adoption in public transport across India.
From a technical view, breaking past all key moving averages and increasing trade volume signals continued upward momentum. Mehta Equities noted that the stock formed a bullish base around ₹1,345–1,350, with indicators suggesting further upside toward ₹1,420–1,450.

Risks & Uncertainties to Monitor

Key risks remain. The ₹10,000 crore Maharashtra order saw confusion; initial reports said cancellation; Olectra later clarified it’s still active under SPV status.
Policy delays or subsidy changes related to PM E‑DRIVE could derail momentum.
And broader EV-sector sentiment affects volatility; past profit-taking in similar stocks shows how fragile sentiment can quickly shift.

Investor Strategies & Scenarios

• Short‑term traders: Might book partial gains near ₹1,550 and trail their stop-loss around ₹1,410–1,350. A close below ₹1,338 could signal a deeper pullback.
• Medium‑ and long‑term investors: If you believe in Olectra’s fundamentals and government support, holding through dips may reward you. Monitor how the company fulfills its pending orders and manages cash flow.
• Balanced approach: Consider selling a portion now, while retaining a core holding. Reinvest if the price dips or fresh tenders win.

Conclusion

Overall, Olectra Greentech’s 20% jump showcases strong Q4 performance, an expanding growth strategy, and supportive tenders from both state and central governments. But the stock is currently overbought and at resistance, making short-term profit-taking a valid strategy. Yet, for long‑term investors convinced by structural growth in EV buses, this could be a base for further gains. Ultimately, what we choose depends on our horizon, risk appetite, and belief in Olectra’s strategy and execution.

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This content is for informational purposes only and not financial advice. Always conduct your research.