Olectra Greentech Q3 Results: Revenue Up 29% Despite Flat Profit Growth and Margin Pressure

Olectra Greentech Ltd. delivered mixed financial results for the third quarter (Q3) of the current fiscal year, posting minimal profit growth despite robust revenue expansion, as margin pressures weighed on overall profitability. The electric vehicle (EV) and composite materials manufacturer reported a net profit of Rs 46.4 crore for the October-December 2025 quarter, representing a marginal 0.3 per cent year-on-year increase from Rs 46.1 crore recorded in the corresponding period of the previous year.

Strong Revenue Growth

Operational revenue showed significant momentum, climbing 28.8 per cent year-on-year to Rs 663.6 crore during the third quarter, compared to Rs 515.3 crore in the same quarter last year. The substantial revenue increase was attributed to enhanced execution levels across the company's operations.

Operating Profit Grows But Margins Face Headwinds

At the operational level, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) registered a 17.7 per cent year-on-year improvement, reaching Rs 93 crore versus Rs 79 crore in the year-ago quarter.

Despite the absolute growth in operating profit, EBITDA margin experienced compression, declining to 14 per cent from 15.3 per cent recorded in the third quarter of the previous fiscal year. This margin contraction signals mounting pressure on profitability metrics, notwithstanding the strong topline performance.

The reduction in margins occurred even as the company achieved growth in operating profit on an absolute basis, bolstered by the substantial increase in revenue generation.

Business Momentum

The electric mobility and composite manufacturing specialist has maintained consistent growth trajectory in recent quarters, propelled by expanding operational scale. While third-quarter revenue growth remained strong, the limited profit advancement and softer margin performance underscore the influence of rising costs on bottom-line results.

Q2 Performance Showed Similar Trends

In the preceding quarter results announced on November 8, 2025, Olectra Greentech presented stable financial metrics for the July-September 2025 period (Q2 FY26).

Net profit for the second quarter increased 4.2 per cent year-on-year to Rs 49.54 crore, up from Rs 47.56 crore in the corresponding quarter of the prior year.

Operational revenue in Q2 demonstrated 25.4 per cent growth, advancing to Rs 656.6 crore from Rs 523.6 crore year-on-year, highlighting sustained topline momentum.

At the operating performance level, EBITDA grew 10.4 per cent year-on-year to Rs 89.35 crore during the second quarter. However, margins experienced moderation, declining to 13.6 per cent from 15.5 per cent in the year-ago quarter. This contraction was attributed to input cost challenges and shifts in product composition.