E-Bus Stocks: JBM Auto and Olectra Jumps Up to 19% on Wednesday; Here’s Why

As per reports, the Ministry of Heavy Industries has extended the deadline for the local manufacturing of traction motors under the  Rs 10,900 crore PM E-DRIVE Scheme. The deadline for local manufacturing of traction motors used in e-bus and e-truck categories has been extended for the second time, as in September last year, the Centre postponed it until March 2026. Manufacturers of electric trucks (N2/N3) and electric buses (M2/M3) now have until August 31, 2026, to transition their motor production to India. This change allows companies to continue importing motors with rare-earth magnets, addressing current supply chain shortages and preventing production delays.

The Phased Manufacturing Programme (PMP) requires specific assembly steps, such as fitting magnets and assembling rotors and stators, to be performed domestically. While the government aims to reduce dependence on imported components, establishing these local supply chains has remained a challenge. To support this transition, the Centre has also introduced a Rs 7,280 crore scheme to encourage the manufacturing of specialized magnets within India.

As a result, JBM Auto and Olectra Greentech share prices gained up to 19 per cent on Wednesday, following the government's decision to extend the localization deadline for traction motors under the PM E-DRIVE scheme until August 2026. This extension allows the companies to maintain production using imported parts.

JBM Auto and Olectra Greentech Gain on Policy Relief

JBM Auto, the market leader in e-buses, saw its share price surge 18.80 per cent to close at Rs 584.75 on Wednesday. The company recently highlighted its global footprint as the only Indian OEM to launch an electric bus, the ECOLIFE e12, at Busworld Europe 2025, while completing the deployment of 500 intercity buses in Telangana and 312 in Delhi. For Q3FY26, total sales grew by 15.60 per cent YoY to Rs 1,613.98 crore, with net profit rising 4.29 per cent to Rs 54.68 crore and PBT increasing 6.46 per cent to Rs 77.45 crore compared to the previous year.

Olectra Greentech, India’s largest pure electric bus manufacturer, saw its share price rise 14.34 per cent to close at Rs 1,033.15 on Wednesday. The company's growth is also supported by a strong Order Book of over 9,400 products, including a diverse range of electric buses such as the V2-7M, iX-9M, X2-12M, and the CX2 Coach, alongside electric trucks like the Tipper. For Q3FY26, the company reported a 29 per cent increase in revenue to Rs 663.6 crore, up from Rs 515.37 crore in Q3FY25. During the same period, EBITDA grew by 19 per cent to Rs 97.10 crore, and Profit Before Tax (PBT) rose by 3 per cent to Rs 64.07 crore compared to the previous year.

Disclaimer: The article is for informational purposes only and not investment advice.