Olectra Greentech Limited (OLECTRA.NS) Q2 FY2026 Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Olectra Greentech Limited Q2 FY '26 Earnings Conference Call, hosted by Nomura. [Operator Instructions] I now hand the conference over to Mr. Kapil Singh from Nomura. Thank you, and over to you, sir.

Good morning, everyone. It is my pleasure to host the management team of Olectra. We have Mr. Mahesh Babu, Managing Director; Mr. Sharat Chandra, CFO, and Mr. Hanuman Prasad, Company Secretary and Compliance Officer. Sir, I will hand over the call to you for the presentation and opening remarks.

Good morning, ladies and gentlemen. My name is Mahesh Babu. A warm welcome to all of you who have joined us today for the Olectra Greentech Limited Earnings Call for Q2 FY '26. We are taking as read the presentation, which is put on our website. I would like to give you a brief on the EV market and the industry from 2019 to 2025, India's EV bus market grew at a CAGR of 35%. The expected growth rate for the next few years is going to be about 40% CAGR, that's what is the market scenario is saying. Primarily, it is due to the new initiatives taken by Government of India and state governments. As you all are aware that already 10,900 CESL bus tender as part of PM E-DRIVE has been in the pipeline. It's expected to be closed in a couple of weeks. We are also hearing that there will be a PM Sewa tender coming followed by this. So the market is fully potential with e-Bus tenders for STUs across the country. While the market has grown at a CAGR of 35%, you all know that Olectra has been significantly higher with a CAGR of 63% so far. And we expect to overdo the market in terms of EV adoption, continue to grow in the segment. Olectra has been the top 2 OEMs in electric bus segment since inception. And last year, FY '25, we are ranked #1 in terms of bus deliveries. As we speak, we are in the top 3 in the H1 as well. So with all this background, cumulatively, we have done about 3,250 for electric vehicle deliveries till September, which includes about 92 e-tippers. Olectra buses have been successfully covered more than 48 crore kilometers across the country so far. And coming specific to our highlights. I think our order book still stands good. We have about 9,000 plus orders in pipeline. And for specific to Q2 of this year, we are pleased to report our highest ever quarterly deliveries of 375 electric vehicles, including 25 electric tippers. In Q2, our revenue is up by 25%, driven by higher deliveries and strong demand. If we look at H -- we also have recorded highest profit in the quarter of EBITDA stood at INR 93.01 crores, reflecting our operational efficiency and scale. If you look at overall even H1, the market was about 2,486 vehicles, Olectra with a market share of 20%, delivered about 496 buses, and 41 tippers. As we speak, we continue to -- our deliveries in Q2 as you see have substantially improved when compared to either Q1 of this financial year or Q2 of last financial year. And our focus is on operational efficiency, which has resulted in strong growth in both revenue and profitability, which will continue going forward in this financial year. As you are aware that our plant is partially operational. We have done a capacity expansion of 2,500 vehicles in 1 shift, and we can do about 5,000 vehicles if we go for 2 shifts. And we are fully prepared to deliver what market can absorb as in terms of electric buses. We are also working on new technologies as you are aware and seeing that we are pleased to inform you that we have already got homologation certificate for a blade battery technology, which is cell-to-pack in our electric buses. And we hope by Q4, these buses will be productionized and delivered to our customers. Blade battery is much efficient and due to cell-to-pack concept, it will give one of the best efficiencies in the country in terms of buses, and we are the first to do that. Regarding the Tipper and Truck segment, also, you have seen till now we have delivered about 92 tippers in the first half and the quarter 2 alone, we delivered about 41. In 41 -- in H1 alone, we delivered 41 vehicles. And we are seeing a potential that in the future, the tipper market and the truck market also will be a primary contribution to our revenue and profitability. Regarding the insulators, I'm happy to share that insulator division has done well. Our CFO will take you through the financial. Overall, I would say that there is a huge potential of e-bus market. We are growing profitably, and we will be among the top 3 in the market. And like last year, we're trying our best to be in the top in terms of delivery. While we have multiple challenges in terms of depots readiness, which has to be matched to our delivery. Otherwise, while we have a higher capacity, we don't want to lock our capital to make the vehicle and wait for deployment when the depots are ready. So we are timing it in such a way that when the depots ready, our buses are delivered on time. Similarly, in insulator, we have grown well. Our CFO will give more details. Overall, I would say that a very good quarter for us Q2, which is highest in terms of delivery, highest in terms of revenue, in terms of EBITDA numbers as well. So now I leave this to Sharat, CFO, to take through the financials.

Thank you, Mr. Mahesh. We are pleased to state that the company continues to show steady growth in consolidated revenue and profitability for the quarter, Q2 and H1, compared to previous fiscal -- previous fiscal year corresponding quarter and H1. I would like to submit a few key highlights. As advised in the earnings call earlier, we started seeing strong traction with ramping up happening from Q2 followed by acceleration in Q3 and Q4. The company has recorded healthy operating margins in both the segments. The EV segment, ramp-up of deliveries contributed to topline growth by about 20% year-on-year. However, there has been margin compression mainly due to product mix shift. As we ramp-up volumes, historical margins as a percentage, may not be sustained, but as we have clarified earlier, we continue to earn healthy margins in the region of 12% to 14%. In line with increased operations, fixed costs also gone up, mainly in employee cost. The financial highlights of Q2 on a consolidated basis. Electric vehicles delivered is about 375 versus 315 last year, with a 19% volume growth. Revenue stood at INR 656.62 crores, up by 25%, EBITDA at INR 93.01 crores, up by 9%. PBT at INR 68.46 crores, up by 6%. PAT at INR 49.43 crores, up by 4%. EPS is INR 6.04 for this quarter versus INR 5.79. The financial highlights for H1 on a consolidated basis. Revenue for the first half -- for the first time, we have crossed INR 1,000 crores, INR 1003.85 crores, up by 20%. EBITDA for H1 is at impressive INR 148.98 crores, up by 9%. PBT for H1 is INR 102.26 crores, up by 6%, PAT at INR 75.46 crores, up by 5%. With regard to cash flows, our working capital environments are being serviced efficiently through optimal utilization of credit facilities, better collections and internal accruals. The higher buildup of working capital as on 30th September is in line with the overall revenue growth and business expansion. Thank you, and over to Nomura for Q&A.

[Operator Instructions] The first question comes from the line of Sucrit Patil from Eyesight Fintrade Private Limited.

I have 2 questions. My first question is for Mr. Subramanian, a forward-looking question. I wanted to understand a bigger picture, what's the long-term plan for like just beyond winning bus orders or expanding capacity? Is there a deeper tactic you're building that gives the company a lasting edge? Just for example, are you thinking about any partnership or any joint venture, any new platforms or any innovative we are working that makes the company stronger and hard for your competitors to copy your module?

Okay. Thank you. Thank you for your question. I hope you are able to hear me. So that's a very good question. I think if you look at it, we are looking at multiple options in the space, where we are in. As you know, that we are in 2 segments today. One is e-Bus another is in the e-Truck segment. Now we all know that we have a partnership with BYD, which is a technology partnership, by which we use BYD technologies in our products, which is a differentiator in the market. Going forward, while we are partnering with BYD, we are very clear that we will have Olectra IPR powertrain going forward. And at the same time, we will leverage the BYD partnership to the best of our customers, depending upon the application, we need to do. Now looking at the plant investments, I think we are, I would say, among the top 3 in the country in terms of plant capacity on electric bus manufacturing and we efficiently manufacturing with lower cost. We will continue to do innovation in manufacturing sector to reduce our costs, maximize our benefit to the customers and keep going. Regarding any new partnership and any new products on the technology, which we are coming on, we have a good R&D team who has the capability to develop many products. However, we will come to the market and tell you when we are actually mature enough in these products and partnerships before we actually declare it. You will be the first one to know before anybody.

My second question is to Mr. Sharat. It's on margin, when costs rise, like factory, raw material or financing, how do you make sure the margins stay steady without slowing down growth? Is there any system that you have put into place or you will be putting into place like smarter sourcing, design efficiencies or pricing control that help you -- help to keep the profit in line? And even when things are getting very -- when you can't foresee certain crisis coming down the line. I want to hear your view on this.

Thank you for your question. We continue to work on improving production efficiencies, bringing in cost optimization measures. If the battery prices really goes up, we will negotiate. We have a mechanism to negotiate with our customers to increase the prices, so that the overall operating margins remain at a healthy level of about 10% to 12%. So we have a process wherein we have a mix of sales. We are present in all the applications. We are present in coach, 12 meter, 9 meters. And we are increasing our product base by introducing electric tippers. So we are confident that overall -- in the overall long term, when we talk about higher volumes in the region of 5,000 to 10,000 numbers, we continue to grow our operating margins in absolute terms. I hope I have clarified your question.

Our next question comes from the line of Akash Shrivastava, individual investor.

This is Akash Shrivastava. First of all, congratulation to Mr. Mahesh for joining Olectra and Mr. Hanuman Prasad for the promotion. And indeed, it is very good quarter number that you guys have posted. For the first time, I mean, at least, in the last 10-odd quarters...

I'm really sorry to disturb you, however, there is some background noise coming from your line.

So for the -- I mean, I've been following this for last 10, 12 quarters. So for the first time, we guys have walked the talk. So I remember last quarter, I think either Mr. Hanuman Prasad or Mr. Sharat said that the Q2 will be at least twice of Q1. So I think Q1 was 160-odd numbers. So this time you guys have met whatever you have said. My question is that -- there are 2 questions. One is with respect to the revised proposal that we have given to Maharashtra Government. So how are we on that particular revised proposal? Are we meeting the revised proposal timeline? Or is it like there is still a bit lagging on the revised proposal?

Thank you for asking that question, actually. There is a revised proposal from MSRTC, which will supply by 2027. We are -- whatever we have explained, I think you all know that, as I said in my introductory speech, that the electric bus manufacturing alone is not critical, the availability of depot, our availability in the depot infrastructure, availability in the depot, which STUs have to give, plays a vital role in delivering our buses. I don't think if you look at the [indiscernible] of the country last year, the total number of electric buses delivered was 4,000. So if Maharashtra want 5,000 vehicle in 1 year, practically, it is not going to happen. The reality is it is going to take 2 to 3 years for that to happen because the infrastructure at that depot and all that is going to be there, that they have realized and we have clarified to them as well. Right now, they are putting focus on getting the depots ready. And we are also timing it in such a way that our production aligns with the depot readiness in Maharashtra. So we are hopeful that in the next 2 quarters or the next 2 years, we will be able to align our production and deliver as much as vehicles the market can absorb in these 2 years. And we are constantly working with STUs for the ecosystem to be developed like our infrastructure and all that. So the buses can be delivered. So that is the situation, and there is no concern as of now. We are confident that what is needed by the market we will deliver. That's why we are #1 last year. And as we speak, even this year, we are in the top 2.

Good to hear that. Just that clarification was required, but I think it was roughly 600 to 700 numbers that we propose that we'll be giving to them in this particular year, in 2025. So are we on track for that number?

Whatever number we have committed, we are on track for that number. I don't have to give some numbers because the depot has to be ready as we said. We will deliver as much vehicles as Maharashtra can absorb in their depots.

My second question is basically a follow-up on this particular question. So now the new CESL tender, which is for 10,900 numbers, that will be -- the results would be announced very soon. So I just want to understand given that you will be getting -- I mean I'm sure that you guys have participated and you -- I'm hopeful that at least 25% to 30% of that particular numbers you guys might be winning the tender. So your capacity is already choked up for the next 2 years. And if I consider maybe 25% to 30% or maybe even 20% also. So more than 2,000 numbers are -- I mean, you will be winning. And as for the timeline, they also have to be delivered within maybe 18 to 24 months. So how are you planning for that particular thing?

See, firstly, we are ready to decide and we are working in participating the tender. The tender is on 14th and the opening will be later on, I don't want to be telling anything on the numbers, which are going to be futuristic. We have to understand one thing. Olectra will participate and win tenders, which are profitable and in line with our business goals and financial targets. We will not be aggressive or anything going behind numbers. We have to create value to the investors, and we are focused on creating value to the investors in a profitable basis. So you will come to know from us, whether we are participating in the tender or not on the 14th, and you will come to know about the results going forward. Probably next call will be the right time to discuss on this.

I'm just hopeful that you guys have planned for that particular additional numbers as well and you will be going ahead and we'll be seeing value creation in terms of the number of orders as well.

Yes, it is in our consideration, yes.

Next question is from the line of Rithvik Ram, an individual investor.

I have certain questions. My first question is to the CFO on the gratuity liability. From the past 5 years, I've seen the gratuity liability has grown up from [ INR 2 to INR 5 crores ]. Any plans to create a trust and fund the gratuity liability? Because as your organization ages and expands, the liability will balloon over a period of time. Any thoughts on that, sir?

With regard to gratuity funding plan, we will discuss internally with our management and a Board, and I would examine the creation of trust. And accordingly, we will intimate in the due course of time. As of now, we don't have any trust. We create provision based on the actual liability -- actually valuation than by the expert. So as of now, as you -- the numbers are not very high, but we have noted your point, with regard to future growth, and then we will accordingly come back.

Sir, I have one question. Sir, who is our actuary for the gratuity piece?

It is -- I'll let you know before the end of the call.

Sir, my second question is to Mahesh. Congratulations for joining Olectra Greentech, sir. My question is regarding the -- what is the USP of Olectra or the other players like Switch Mobility and Mahindra Electric. Any difference you see, sir?

Each organization and each product has a unique proportion. That's why customers buy it. So if you look at Olectra, Olectra, we have a lot of sense. We have well-invested plant available. Our products are reliably and durably performing well. We have a technological tie-up with one of the largest bus manufacturers in the world, BYD. And in terms of battery technology, as you know, we are getting the cell-to-pack blade battery technology into the market. And we have been quick in getting multiple products, and we are also now making commercial vehicles like tipper and getting into that market as well. So Olectra, I would say, is right now market leader in Bus segment. We are participating in the Truck segment in a very nimble way now. Going forward, there is -- both the segments have a huge opportunity to grow. I strongly believe that we are building up a team who is capable of handling these 2 businesses over a bit of time. And also, we are in the insulator as you know that it's a reasonably good business with good profitability, running in the business. So we have a varied multiple business verticals, and we will look at options of entering new as we go along.

[Operator Instructions] Our next question comes from the line of Geetansh from Taurus Asset Management.

I have 2 questions regarding you. Any update on the greenfield plant expansion. Like would it be completed by FY '26 end? Or would it be delayed?

So as I told in the initially introduction, the greenfield plant has partially started operating, and we have achieved a capacity of 2,500 vehicles per shift and which can be reached 5,000 in 2 shifts. One -- as you know, the whole market last year was 1,400 vehicles. This year, it is expected to be about 6,000 vehicles. So we are with the highest market share right now, 20% to 25%, are meeting their capacity requirements right now. The second phase of expansion will happen once we reach that capacity of delivery when the market reaches. And we are well positioned to serve our market in a good way. So I'm happy to confirm that our partial operations on the greenfield plant done and billings have already started.

And next one was regarding like going forward, do we see any supply chain issues like getting resolved? And can we see achieving the sales guidance that we have in the future?

See, if you look at not only Olectra, auto industry, auto industry has gone through supply chain challenges, COVID, we had challenges, then microchip shortage challenge came in. Now we are seeing about permanent magnet restrictions. There are geopolitical issues. So this will continue. Auto industry and the professionals and system, which we follow have been resilient for hundred years. And Olectra is not away from it, and we are all professionals. We have been handling supply chains in our life in the past. So there will be challenges. I don't see no challenges in supply chain. There will be challenges. But I can tell you we are well equipped and capable of handling the challenges to deliver what is our target in terms of delivery.

So like we are maintaining our guidance as such?

Yes.

Our next question comes from the line of Bala Murali Krishna from Oman Investment Advisors..

So I missed the initial remarks, I think [indiscernible] are we still sticking on to the guidance? Or are there any changes [indiscernible]

We are not changing any guidance. We are seeking to the target, while we have multiple challenges in terms of the depot readiness and power supply. We're still hopeful that the ecosystem will develop, and we are still working on the target this year, and we are not giving up.

And on the commentary, I know you have answered that. Do Olectra has nothing to do with the depot readiness, you job is to deliver the buses to the [indiscernible] So when they are compliant and they are ready to cancel the contract when we are not delivering the buses. So still our job is to deliver the buses, so [indiscernible] as we are setting that FTEs are not due to [indiscernible]. We look at that problem, then again, we'll end up in the same issue delay in [indiscernible] our contracts will also get [indiscernible]. This may not be our problem, if you look at that problem, then again we'll end up in those [indiscernible].

I just want to clarify to all of you. I think the government also has understood well, unlike diesel buses, which are delivered and you can start running without any problem. You can fill diesel anywhere on card, start running. EV buses cannot be done like that. Because our payment will come only when you start running. In the recent, I can give an example in the last CESL tender, some of our 2 competitors have delivered about 600 buses in Delhi and it was waiting for 6 months. So 600 buses is about 600 -- almost close to INR 700 crores. If we hold INR 700 crores of inventory and STUs are not running for 6 months, you can understand without payment, what will happen. So we have to be very, very cautious. I think what is hearing in newspapers are different on what in the reality needs to be clarified. So newspaper is typically a sensational news which comes in the market, but when we engage and we explain, everybody understands it and in industry I've been from industry, I know all the competitions. They are all having the same issue with state transport undertaking. We will supply the buses. If they don't run for 3 to 6 months, we are in deep trouble because we'll not get payment. We will get payment only when it starts running. So I would suggest that -- thanks for asking this question and don't go by media reports. We are there to clarify what is there in the one. And we have not got any cancellation of order. We have got very clearly the extension of the supply, considering all these depot readiness considering all these challenges, which -- some of them we'll understand, some of them we need to educate, and that's what we are doing in the industry as well. It's not only for Olectra, it's the same for any other EV bus manufacturers in the country. I hope I've clarified your question.

The consent is only the [indiscernible] tender seems -- it's a really long time, we have not received orders in the United small order, but when it comes to a large order sales, I think maybe 1 to 1.5 years ago, there is no big orders. So how do you see this on -- so even now you have something like in 10,000 [indiscernible]. So in the [indiscernible], I'm not able to capture anything. So how do you see the current tender [indiscernible] and how the order book [indiscernible] are we able to add any substantial number by the year-end will continue to [indiscernible] .

See, I don't want to give you anything. See, we have enough orders, and we are capable of getting enough orders to look at the growth. So that's what I said, the CAGR of e-bus industry has seen 35% and Olectra has been growing in the last year at a CAGR of close to 60%. That means we have outperformed the industry, and we'll continue to outperform the industry. On specifics of which order to take, what order to take, I've already clarified the management is very clear in philosophy that we will take orders which are profitable. and fits into their future requirements, what it is. And we will not be aggressive like some new entrants who want to capture it because long term, profitable and sustainability goes together and even the STUs understand it well. So we will keep you posted on which tender we are taking, which tender we are not participating as we go to the market because I don't want to be speculative now before the tender is participating, and it will give hint to our competitors as well.

Our next question comes from the line of Deepak Poddar from Sapphire Capital.

I just wanted to understand first up, I mean, is there any import component as well? I mean, in terms of our manufacturing, do we need to import as well a few components?

Yes. See, as far as E-bus is concerned, battery cells and battery packs, including the BMS and some components of motors continue to be imported. So we source from a technology partner. So as far as EV segment is concerned, this is what we are going to depend on imports till an ecosystem is developed in India for manufacturing of buses, which is happening, which will take some time. As far as the second business, we have Insulator segment, we have both imports and exports, so we have a natural hedge of imports, which takes care of the -- against the exports. Hope I have clarified.

Yes. And how much percentage, I mean, e-buses how much percentage of import would constitute the total raw material cost for us?

So as of now, we are in compliant, we are compliant in terms of meeting all the utilization strategy to be what the company is following. We continue to localize all the components at the continuous process. I'll not be able to divulge the exact percentage, except the battery cell and battery pack, which are imported and some of the motors. All the rest of the components are sourced in India with vendors being developed over a period of time. So we continue to focus on localization of these components.

And where we import from? We import from China?

We import -- we are having a technology tie-up from BYD -- with BYD till December 2030. And they are our technology partners. So we continue to source the battery technology from them.

And second question revolves around your deliveries for next year. And this year, I think we are targeting around 2,000 rate. So anything on next year as well after '27, what sort of target we might have?

So as of now, we will revert back to you on next year guidance as we progress during the year because as of now, as Mr. Mahesh has clarified, it all depends on the overall ecosystem to evolve, the depot readiness, infrastructure readiness by the SKUs. So accordingly, we plan our deliveries to meet the market requirements.

Next question comes from the line of Gaurang from Utility Unified.

Glad to have EV veteran Mahesh Babu sir on board the Olectra bus. And I hope someday it's Olectra cars as well, given your decade-plus experience in electric EV segment as well. Sir, I have 3 questions for the management. First is, will the future bids, including the CESL bid be done considering the blade battery technology, which is 30% efficient and hence, facilitating for competitive bids. So that's my first question. Should I wait for the answer? Or should I continue with the other questions?

Actually, Mr. Mahesh has just stepped out some urgent call. I would like to clarify -- I think he has already clarified very clearly that the company is yet to decide on bidding the CESL. So we will come back once -- you will know once we consider bidding on November 14. So regarding which technology use, the management will appropriately consider based on the pros and cons with regard to the requirements to meet the tender conditions, especially with regard to localization, with regard to number of kilometers, schedule, cities and all that.

So my follow-up question is, so best fleet is at all-time low, the Mumbai best I'm talking to. So with people suffering daily, let's be honest, I am a Mumbaiker, and I know the real on-ground situation. And as per street chatter, BEST has already given 40-plus depots to EV transfer electrification. So in that context, is it fair to say that we are lagging in production rather than the narrative that we are getting to hear that STUs have been a little complacent?

So we cannot actually talk about one specific STU. We have to see the overall ecosystem of the bus readiness. As we see, Olectra is having a major customer-centric in Maharashtra with MSRTC about 5,000-plus numbers and BEST about 4,000 numbers. We continue to focus and deliver the requirements as and when the STUs are ready, as and when the reports are ready. Accordingly, we are planning our production to meet the current schedule. And accordingly, we are confident that we will be able to deliver as per the timelines mutually agreed with the STUs.

What we getting the year on street is that 40 plus -- 40 plus depots have already been given to EV transport electrification. So in that context, I was little confused that how are we setting a narrative that the STUs have been completed? Because it's a major order of 4,000 buses.

See, we are -- to clarify, we are in line. We are -- as per the schedule agreed with the customer, we are planning our deliveries to meet the schedules as per the agreed timelines.

So my final question, any updates on battery energy storage system business since it can be a natural extension to already sourcing lithium battery vehicle business. So it can be an extension. So is the management looking as one of the streams for revenue?

So it is at a very, very nascent stage. So at appropriate time, when the management decides, we will come back to you, we'll let you know if we are venturing into the EV energy storage segment.

And any update on new products that are getting launched?

So as of now, we are working very strongly R&D team, any new product takes time. R&D team is working and so it is in various stages of development and with regard to testing and all. At appropriate time, whenever we are introducing new products or new segments, we will notify our shareholders.

Next question comes from the line of [indiscernible], an individual investor.

On the call, I mentioned earlier, right, the delivery of buses has been impacted by factors like depot readiness, charging infrastructure, power supply, many which are like outside Olectra's control. Considering that, how are you planning to overcome these challenges and reach the full production potential of 5,000 EVs in 2 shifts? And a follow-up on that, given this dependency and the ecosystem ramp-up in India faces delay, is company exploring exports or other markets to keep utilization high? If you can answer that.

Thank you for your question. So we continue to monitor closely. And as Mr. Mahesh, has clarified in the initial remarks, we -- Olectra has been in the top 2 performer, right, from inception. And in the last financial year in terms of deliveries, Olectra stood at #1. And in H1, we are in the top 3. So basically, as you can understand of this -- the overall industry landscape is evolving and still we are at a nascent stage. So as against the initial estimates, we are lagging behind. Still Olectra CAGR growth of 63% is much above the industry standards. So we continue to monitor. And based on the depot readiness, infrastructure readiness and the mutual agreed timelines, we continue to plan our production schedules to meet the timelines. And as far as the exports are concerned, we are still -- we are focusing on the current order book. As of now, we are not focusing on export market as of now. So we will come back to you with regard to any plans for exports at an appropriate point of time.

And considering our current partnership with BYD, does it restrict as to like the Indian market or like in future, there could be possibility of exports?

Yes, I'll request Mr. Hanuman Prasad to clarify on the partnership with BYD.

Yes. At this moment, we have a cooperation agreement with BYD till 2030 for Indian market. Maybe at a later stage, actually, we are free to discuss if we are intended to do exports. As of now, it is for the Indian market only.

And last question on the tipper order book, what kind of order book do we have in hand at this stage?

So we have basically -- we delivered about 92 tippers overall cumulatively since we introduced the product. We continue to develop various -- our R&D team is working on various variants within the truck segment. We have an order of about 70 numbers. Against that, we delivered about 41. So about 29 tippers is planned to be delivered in the coming few weeks.

Our next question comes from the line of Amit Agicha from HG Hawa & Company.

So the question is about EBITDA per e-bus. [Technical Difficulty]

Ladies and gentlemen, the management line has been drop-off. Ladies and gentlemen, management line has been reconnected. Amit Agicha, you may please proceed with your question.

Yes, sir, the question was what is the EBITDA per e-bus?

In terms of EBITDA margin on EV segment product mix -- can we clarify, see, because we have a product mix, we are present in intercity core segment, intracity 12 meter, 9 meters. So we are basically present in all applications. So every quarter depends on the product mix based on the schedule agreed with our customer, we manufacture and supply. So overall, our margins has been -- on an EV segment is at a healthy about -- for quarter 2 is about 11.5% and overall H1 is about close to 12%. So overall, in terms of volume and to be competitive in the market, our margins will be around 10% to 12%, keeping the overall volume at high volumes about 5,000 to 10,000 numbers going forward. In absolute terms, we continue to have healthy margins, and we continue to see growth in absolute terms. But in percentage terms, the historical numbers, as I have clarified in the introductory speech, historical trend of percentages may not be sustainable to be in line with market competitiveness.

And just second question is about the debt management, the company debt cost [indiscernible].

Basically, we have our debt in terms of -- we have working capital facilities as well as term loan for the new facility. The overall -- the cost of financing is around 9%.

[Operator Instructions] Our next question comes from the line of Satyam Agarwal, an individual investor.

Sir, I just wanted some clarity on the new business segments that we are entering that [indiscernible] That we are making. So is the product [indiscernible] and what is the kind of revenue that we are targeting from that segment?

[indiscernible] concerned, it is in a nascent stage. So still it is in development stage. So as this progresses and as we get a good traction, we will definitely come back to you. As of now, it is at a very nascent development stage.

On the margin, sir [Technical Difficulty] kind of margin that we are seeing?

So as of now, as this product -- a new segment is in a very nascent stage. We are yet to fix the selling prices and the margins.

And sir, on that segment, you said to the earlier participant that we are not targeting the earlier margin that we had. So this kind of margin like on the overall company basis, lending margin of 13.5%, is this sustainable margin that we can consider. I am talking about EBITDA margin..

Yes. Please go on.

I'm talking about the EBITDA margin without including the other income. So [indiscernible] around 13.5%.

Correct.

So is it kind of margin sustainable going forward.

Yes. Basically, as I clarified earlier, overall in the way forward, we talk about large numbers, the EBITDA margin may be around between 10% to 12%. Regarding 13.5%, it is definitely in the medium to midterm. Definitely, we are going to sustain those kind of margins. The other segment, Insulator segment, our operating margins have been growing healthy because we have been concentrating on exports and high profit margin products. So overall, in the company as a whole, we see that the margins will remain at these levels in the near to midterm.

Sir, on the Insulator division, what kind of revenue we are targetting for next year FY '27?

So as of now -- we will come back to you next year guidance. As of now, it's too early to comment on the next year. But as we've seen, insulator business has been growing very well. Last year, we had a top line of INR 180 crores. And this year, H1, we have already touched about INR 130 crores. So we see good growth. We have a good order book. Regarding next year guidance, we'll revert to you at an appropriate time as we progress in the quarters.

[Operator Instructions] Our next question comes from the line of Rahul, an individual investor.

Congratulations to the Olectra team. Great set of numbers. Just had a quick question. Actually, in the morning, I was reading the [indiscernible] and I just can resonate definitely with like the logistical problems and operational issues with like these best and all the other -- the organizations trying to like catch up to the demand, right? So I understand the supply is there from our end. But my question is basically to understand if there is anything that the Olectra team is planning in terms of like future based, like vertical integration or horizontal integration or like any kind of expansion into other business segments? Because unfortunately, if something happens in terms of slowdown in terms of their expansion, logistical expansion, so then we might have to see other revenues.

I think to clarify your question, see, basically, Government of India has been pushing for adoption. So very, very aggressive in terms of introducing of new technology, new tenders. And so based on the scrappage policies, which have been announced earlier, the ecosystem is getting geared up, though the adoption is not as per the initial plans, but still government is planning to increase the adoption. So I think we don't foresee any kind of slowdown in the EV adoption. It will accelerate going forward with the new initiatives like PM E-DRIVE and CESL tenders coming in. And as far as Olectra is concerned, the bus market as such is -- the population of bus market is about 1.8 million buses. This is an old statistic, which has been there. So if you talk about replacement of all the diesel buses to EV, it is going to take some time. And as of now, it is less than 1% is electrified. So out of this overall population of buses, there is a private segment, which is also basically which is yet to take traction. We are hoping that the traction is going to happen in the private segment. So that is one big market, which is an opportunity for Olectra and as well as the entire EV ecosystem as well. And I think we have clarified that Olectra is working on electric truck segment as well. And as of now, our tippers, about 92 tippers have been deployed up to 30th September, and we continue to actually do a lot of demos and trials. Since the product is nascent, the traction is yet to happen. And we see a good potential and a good opportunity in the Truck segment as well. I hope to have clarified.

Ladies and gentlemen, due to the time constraint, that was the last question for today. I would like to hand the conference over to Olectra management for the closing comments. Thank you, and over to you, sir.

Thank you very much. We thank all the shareholders who have participated today. They have been very supportive in the company's growth journey and the and the patience and faith [indiscernible] company. We expect good growth in the coming quarters and see a good revenue -- consolidated revenue and profitability for this financial year '26. Thank you very much.

Thank you, sir. On behalf of Olectra Greentech Limited and Nomura, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.