EV stocks attract buying as manufacturing milestones lift sentiment
Shares of Olectra Greentech and JBM Auto witnessed sharp buying interest on January 2, as investors responded positively to fresh developments in India’s electric vehicle (EV) manufacturing space. Olectra Greentech shares jumped nearly 6 percent after the company announced the commencement of operations at its new EV manufacturing facility in Hyderabad, while peer JBM Auto surged close to 8 percent, snapping a two-session losing streak.
The rally underscored renewed optimism around domestic EV manufacturing, particularly in the electric bus segment, where order visibility, policy support and capacity additions are becoming key drivers of investor confidence.
Hyderabad EV facility goes live, marking a key milestone for Olectra
In a stock exchange filing released after market hours on January 1, Olectra Greentech announced that it has declared December 31, 2025 as the commercial operation date (COD) for its greenfield electric vehicle manufacturing facility located at Seetharampur in Hyderabad, Telangana.
The company said the facility is expected to have an annual per-shift production capacity of 2,500 electric buses. This represents the completion of Phase-I, which accounts for 50 percent of the planned per-shift annual capacity of 5,000 buses.
“This Phase-I capacity achievement of 2,500 buses per annum represents 50 percent of the planned per-shift annual capacity,” the company said in its filing, adding that the commencement of operations has been formally communicated to its lender, State Bank of India (SBI).
The start of commercial operations marks a crucial step in Olectra’s growth strategy, as capacity constraints have been one of the key bottlenecks for timely execution of large electric bus orders.
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Market reacts positively to capacity addition and execution visibility
Following the announcement, Olectra Greentech shares surged to an intraday high of Rs 1,274.80, touching a one-month high. Trading volumes spiked sharply, reflecting strong investor interest.
According to data compiled by Informist, around 18.80 lakh shares of Olectra Greentech changed hands on the NSE within the first two hours of trading on Friday, significantly higher than the nearly 62,500 shares traded during the same period a day earlier.
Market participants said the sharp rise in volumes suggests renewed confidence in the company’s execution capabilities at a time when state transport undertakings are placing large orders for electric buses under central and state government schemes.
JBM Auto benefits from sector-wide optimism
The positive sentiment spilled over to JBM Auto, another key player in the electric mobility ecosystem. JBM Auto shares rose nearly 8 percent to Rs 673.40, benefiting from expectations of stronger demand for electric buses and related components.
The stock also witnessed a sharp jump in trading activity. Nearly 80 lakh shares changed hands on the NSE within the first two hours of trading on Friday, compared with just 1.53 lakh shares traded during the same time window on Thursday, according to Informist data.
Investors appear to be positioning for a potential revival in the company’s EV-related business, even as the broader auto ancillary space remains selective.
Stock performance and valuation snapshot
While the day’s rally was strong, both stocks have delivered mixed returns over longer periods, reflecting volatility in the EV space.
Olectra Greentech share performance highlights:
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Up around 3 percent in the past five days
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Down over 16 percent in the past one year
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Market capitalisation of about Rs 10,258 crore
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Trades at a price-to-earnings (P/E) ratio above 71, indicating premium valuations
JBM Auto share performance highlights:
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Up around 9 percent in the past five days
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Up nearly 3 percent in the past six months
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Down more than 16 percent over the past one year
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Market capitalisation of around Rs 15,753 crore
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Trades at a P/E ratio of about 56
The elevated valuations reflect high growth expectations but also make the stocks sensitive to execution delays and order flow visibility.
Why EV bus manufacturing is back in focus
Electric buses remain one of the fastest-growing segments within India’s EV ecosystem, supported by:
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Government-backed procurement under schemes such as PM e-Bus Sewa
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State transport undertakings accelerating fleet electrification
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Rising fuel costs improving the total cost of ownership equation
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Policy push for cleaner urban mobility
Capacity additions like Olectra’s Hyderabad plant are critical in addressing supply constraints and improving delivery timelines, which in turn can support revenue growth and working capital efficiency.
Market experts note that timely commissioning of facilities is often viewed as a credibility booster, especially for companies executing large public-sector contracts.
What investors should watch next
Going forward, analysts say investor focus is likely to remain on:
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Ramp-up timelines and utilisation levels at the Hyderabad facility
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New order wins and execution progress in the electric bus segment
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Margin trends amid competitive bidding and input cost pressures
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Balance sheet strength and working capital management
While the commencement of operations is a positive development, sustained stock performance will depend on how effectively companies convert capacity into revenues and profits.
As one market participant put it, “The announcement improves visibility, but the next trigger will be execution on the ground.”
Outlook remains constructive but selective
The sharp rally in Olectra Greentech and JBM Auto highlights how execution milestones can quickly revive interest in EV stocks, even after periods of underperformance. However, with valuations already pricing in strong growth, investors may continue to adopt a selective and milestone-driven approach toward the sector.
For now, the Hyderabad EV plant has provided Olectra Greentech with a tangible growth catalyst, while JBM Auto’s rally underscores broader optimism around India’s electric mobility push.
