JBM Auto Ltd and Olectra Greentech Ltd rise over 4 per cent on Tuesday; here are the key reasons

Shares of JBM Auto and Olectra Greentech moved higher on Tuesday. JBM Auto closed 5.83 per cent up at Rs 572.20 and Olectra Greentech ended 4.53 per cent higher at Rs 1,070.35. Ashok Leyland also gained 3.18 per cent on the day. Two developments drove the gains. First, the government said it will deploy 10,000 air-conditioned e-buses across 116 cities in 26 states and union territories by the end of 2027 under the PM e-Bus Sewa Scheme, with a second scheme for 35,000 more buses expected to follow. Second, the Ministry of Heavy Industries extended the deadline for local manufacturing of traction motors under the Rs 10,900 crore PM E-DRIVE scheme to August 31, 2026, giving manufacturers more time before they are required to source motors domestically.

Government's E-Bus Plan
Minister of Housing and Urban Affairs Manohar Lal told the Rajya Sabha that agreements for 6,500 buses have already been signed and a tranche of 225 buses was delivered last month. Of the 178 cities eligible under the scheme, 116 participated and were allotted buses. The minister said the guidelines for the second scheme of 35,000 buses are yet to be worked out.

More Time on Traction Motors
The traction motor localisation deadline had already been pushed once, from its original date to March 2026. It has now been extended again to August 31, 2026. This gives electric bus and truck manufacturers more time to shift motor production to India and allows them to continue importing motors with rare-earth magnets for now. The government has also announced a Rs 7,280 crore scheme to support domestic manufacturing of specialised magnets.

About the company

JBM Auto
JBM Auto is the market leader in electric buses in India with an Order Book of 4,500 buses. The company has deployed 500 intercity buses in Telangana and 312 in Delhi. It is also the only Indian bus manufacturer to have launched an electric bus, the ECOLIFE e12, at Busworld Europe 2025. In Q3 FY26, total sales grew 15.60 per cent year on year to Rs 1,613.98 crore. Net profit rose 4.29 per cent to Rs 54.68 crore and profit before Tax grew 6.46 per cent to Rs 77.45 crore.

Olectra Greentech
Olectra Greentech is India's largest pure electric bus manufacturer. The company has an order book of over 9,400 products covering electric buses such as the V2-7M, iX-9M, X2-12M, and CX2 Coach, as well as electric trucks including the Tipper. In Q3 FY26, revenue grew 29 per cent to Rs 663.6 crore from Rs 515.37 crore in Q3 FY25. EBITDA grew 19 per cent to Rs 97.10 crore and profit before tax rose 3 per cent to Rs 64.07 crore.