Dividend Snapshot – Olectra Greentech Limited
The Olectra Greentech dividend 2026 is a final dividend of ₹0.60 per share for FY 2025-26, described as 15% of the ₹4 face value. That 15% is not what shareholders earned. At the 28 September 2026 close of ₹1,174, the real yield was just 0.05%, roughly 293 times smaller than the headline figure.
Dividend per share
₹0.60 (Final)
Up from ₹0.40 in each of FY22 to FY25
Market yield at ₹1,174
0.05%
Headline rate: 15% of face value
Total outflow / payout ratio
₹4.93 Cr / 2.7%
Against FY26 consolidated PAT of ₹179.53 Cr
Record date / Ex-date
19-09-2026 / 18-09-2026
Payment due within 30 days of the 26-09-2026 AGM
Olectra Greentech Limited: Company Overview
Olectra Greentech Limited (NSE: OLECTRA, BSE: 532439, ISIN: INE260D01016) is a Hyderabad-based maker of electric buses, electric tippers and composite polymer insulators. It is a subsidiary of MEIL Holdings, which holds 50.02%, and builds its buses with battery and drivetrain technology from China's BYD.
The Mobility division contributed about 86% of Q1 FY27 revenue. The company delivered 1,280 electric vehicles in FY26, crossed 4,000 cumulative deliveries in June 2026, and reported an order book of about 8,000 to 8,500 vehicles in August 2026. Most orders come from state transport undertakings under gross-cost-contract tenders, which means execution timelines and government payment cycles drive both revenue and cash flow.
Olectra Greentech Limited Financial Analysis at a Glance
| Consolidated (₹ Cr) | FY25 | FY26 | Change |
|---|---|---|---|
| Revenue | 1,801.90 | 2,312.17 | +28.3% |
| Operating profit | 262 | 330 | +26.0% |
| Net profit (PAT) | 139.21 | 179.53 | +29.0% |
| EPS (₹) | 16.92 | 21.62 | +27.8% |
| Operating cash flow | 141 | 104 | -26.2% |
| Borrowings | 255 | 380 | +49.0% |
Profit grew in line with revenue, but operating cash flow fell 26% and borrowings rose 49%. ROCE held at 21%, and the five-year compound growth rates are 52% for revenue and 85% for profit. Source: Screener.in consolidated data; company results release dated 29 May 2026.
Olectra Greentech Limited Dividend History Table
| Financial year | Dividend (₹) | % of FV | EPS (₹) | Payout | Record date |
|---|---|---|---|---|---|
| FY 2025-26 | 0.60 | 15% | 21.62 | 2.8% | 19-09-2026 |
| FY 2024-25 | 0.40 | 10% | 16.92 | 2.4% | 20-09-2025 |
| FY 2023-24 | 0.40 | 10% | 9.36 | 4.3% | 19-09-2024 |
| FY 2022-23 | 0.40 | 10% | 7.99 | 5.0% | 21-09-2023 |
| FY 2021-22 | 0.40 | 10% | 4.31 | 9.3% | 21-09-2022 |
| FY 2013 to FY 2021 | Nil | – | – | 0% | – |
Payout here is dividend per share divided by consolidated EPS. Olectra has not issued bonus shares or split its stock during this period, so no per-share restatement is required. Sources: Screener.in, TipRanks, company filings.
Expert Commentary on the Olectra Greentech Limited Dividend
ShareBazaar Online research view
The 50% increase in the dividend, from ₹0.40 to ₹0.60, is a signal about management's confidence, not a source of income. At ₹4.93 Cr, the payout is 3.9% of the ₹125 Cr of new borrowing Olectra took on in FY26.
The more important numbers are elsewhere. Operating cash flow covered only 57.9% of reported profit, compared with 101% in FY25. Receivables grew an estimated 43% while revenue grew 28%. For a growth company that sells to state transport bodies, this dividend policy is reasonable. Anyone looking at the stock for income should treat the dividend as a rounding error and focus on how quickly the company converts receivables into cash.
Olectra Greentech Limited Dividend Outlook
Management is targeting about 2,500 vehicle deliveries in FY27, nearly double FY26, backed by an order book of roughly 8,000+ buses. It also plans a greenfield EV facility in Telangana and an electric-truck launch in Q4 FY27.
Q1 FY27 set the tone. Revenue rose 65.8% to ₹575.5 Cr, but PAT rose only 2.4% as interest costs doubled to ₹24 Cr and the operating margin slipped to 12%. The CFO has guided to margins stabilising around 12%. With capex and working capital both rising, future dividends are likely to stay token-sized. Any meaningful increase would probably depend on positive free cash flow, which Olectra has not recorded since FY24.
Olectra Greentech Limited Dividend Announcement Summary
What the board recommended
At its meeting on 29 May 2026, which ran from 4:52 PM to 6:00 PM IST, the board recommended a final dividend of 15% (₹0.60) per fully paid equity share of ₹4 for FY 2025-26, subject to shareholder approval.
What followed
Shareholders approved the dividend at the 26th AGM on 26 September 2026. The filing commits to payment within thirty days of the AGM, which means on or before 26 October 2026. The company has not disclosed an exact credit date.
Olectra Greentech Limited Record Date and Ex-Dividend Date Timeline
- 29-05-2026 (Fri): Board recommends ₹0.60 final dividend alongside FY26 results.
- 18-09-2026 (Fri): Ex-dividend date. Shares bought on or after this day did not qualify.
- 19-09-2026 (Sat): Record date, as fixed in the company's book-closure intimation.
- 20-09-2026 to 26-09-2026: Book closure for the AGM and dividend.
- 26-09-2026 (Sat): AGM approves the dividend.
- By 26-10-2026: Payment deadline, 30 days from the AGM.
The record date falls on a Saturday, so under T+1 settlement the ex-date is the previous trading day, Friday 18 September. Market data platforms list the same ex-date.
Olectra Greentech Limited Dividend Yield Analysis
The face-value illusion
"15% dividend" is ₹0.60 measured against a ₹4 face value that has no link to the trading price. On the announcement-day close of ₹1,180.65, the yield was 0.051%. At ₹1,174 it is 0.051%, which works out to about ₹51 a year on a ₹1 lakh holding.
Yield reality check
The yield improved slightly from about 0.026% a year ago, when the FY25 dividend was paid with the stock near ₹1,558. Two things drove that change: the higher dividend and a 25% fall in the share price over one year. Neither reflects stronger dividend capacity. The yield remains far below that of large peers such as Ashok Leyland, at 2.22%.
Olectra Greentech Limited Dividend History Analysis
Olectra, then known as Goldstone, paid small dividends between 2009 and 2012. It paid nothing for nine years after that, while it moved into electric buses and absorbed losses, including a ₹16 Cr loss in FY19. Payouts resumed in FY22 at ₹0.40 and stayed flat for four years before this year's increase to ₹0.60.
The payout ratio has fallen steadily, from 9.3% in FY22 to 2.8% in FY26, because EPS grew fivefold while the dividend barely moved. There have been no special dividends and no cuts since the resumption.
Classification: Irregular Payer over a 15-year view, and a consistent token payer over the last five years.
Olectra Greentech Limited Dividend vs Profit Growth
FY26: balanced growth
Revenue grew +28.3%, operating profit +26.0% and PAT +29.0%. The operating margin slipped slightly from 15% to 14%. Interest rose 19.6% to ₹61 Cr and depreciation rose 21.6%, but a lower tax rate and higher other income (₹22 Cr) kept PAT growth ahead of revenue.
Q1 FY27: negative operating leverage
Revenue rose 65.8%, but PAT rose only 2.4%. The operating margin fell to 12% from 14%, which management attributed to raw-material inflation and supply-chain disruption. Interest doubled from ₹12 Cr to ₹24 Cr and depreciation rose 50%. Growth is now being funded with debt, and the cost of that debt is eating into profit.
Olectra Greentech Limited Cash Flow Analysis
Profit is not turning into cash
FY26 operating cash flow was ₹104 Cr against PAT of ₹179.53 Cr, only 57.9%. In FY25 the figure was 101%. Debtor days rose from 140 to 156, so estimated receivables grew about 43% while revenue grew 28%. More of each rupee of sales is waiting on payment from state transport customers.
How the dividend is funded
Free cash flow was negative ₹55 Cr in FY26, after negative ₹36 Cr in FY25, because capex of about ₹159 Cr exceeded operating cash flow. Borrowings rose by ₹125 Cr. The ₹4.93 Cr dividend is covered by operating cash flow, but at the company level it is effectively paid while the company is borrowing to fund capex.
Olectra Greentech Limited Balance Sheet Strength
- Net worth: ₹1,228 Cr in FY26, up from ₹1,049 Cr.
- Borrowings: ₹380 Cr, up from ₹121 Cr in FY24 and ₹255 Cr in FY25. That is more than three times the FY24 level in two years.
- Debt-to-equity: 0.31x, up from 0.24x. Still moderate.
- Investments: ₹94 Cr. Cash and bank balance: Not Disclosed by Company in the data reviewed.
- ROE / ROCE: about 15.8% and 21% respectively.
Leverage is manageable, but it is rising in a year when interest costs are climbing faster than profit.
Olectra Greentech Limited Dividend Sustainability
Four-test scorecard
- Earnings cover: EPS/DPS 36x. Pass.
- OCF cover: 21x. Pass.
- FCF cover: -11x. Fail.
- Liquidity cover: investments cover the outflow 19x. Pass.
Verdict: Sustainable, because the dividend is too small to strain anything, not because the business generates surplus cash.
Capital allocation view
Keeping the ₹4.93 Cr would have covered only 3.1% of FY26 capex or 1.3% of total debt. A buyback is not realistic while free cash flow is negative. Retaining cash for capacity expansion and working capital is the logical priority, and the small payout fits that.
Olectra Greentech Limited vs Peers: Dividend Comparison
| Company | Yield | FY26 payout | ROE | ROCE | Debt/Equity |
|---|---|---|---|---|---|
| Olectra Greentech | 0.05% | 3% | 15.6% | 21.0% | 0.31x |
| JBM Auto | 0.14% | 9% | 15.7% | 15.1% | 1.97x |
| Ashok Leyland | 2.22% | 59% | 27.4% | 13.6% | 4.49x* |
Olectra has the lowest yield and payout in this group but the highest ROCE and the lightest leverage. JBM Auto, its closest electric-bus rival, pays out about three times as much, though with far higher debt. *Ashok Leyland's consolidated debt includes its lending subsidiary. Source: Screener.in, as of 25 to 28 September 2026.
Olectra Greentech Limited Promoter Dividend Impact
Promoter share
MEIL Holdings owns 50.02%, a stake that has not changed across 12 quarters and has no shares pledged. It receives about ₹2.46 Cr. Relative to the promoter group's size, this is immaterial and gives no sign that the dividend is being used to extract cash.
Minority shareholders
Public shareholders (41.47%), FIIs (7.95%) and DIIs (0.58%) share the other ₹2.46 Cr. Across 4,33,537 shareholders, the average receipt is about ₹57. The distribution is strictly proportional, and its effect on any individual shareholder is negligible.
Olectra Greentech Limited Dividend Taxation
Rules for tax year 2026-27
Dividends are taxed at your slab rate. For residents, the company deducts 10% TDS (20% without PAN) under Section 393(1) of the Income-tax Act, 2025 only when dividends from that company exceed ₹10,000 in the year. You would need about 16,667 Olectra shares to cross that threshold. From FY 2026-27, no interest deduction is allowed against dividend income.
Worked example (30% slab, 4% cess)
An investor holds 1,000 shares and receives ₹10 per share. Gross dividend is ₹10,000, tax is ₹3,120, and the net amount is ₹6,880. At ₹1,174, the effective yield falls from 0.85% to 0.59%. For the actual Olectra dividend, 1,000 shares receive ₹600, with no TDS deducted and ₹412.80 left after tax.
Key Risks for Olectra Greentech Limited Shareholders
- Receivable build-up: 156 debtor days, owed mostly by state transport undertakings.
- Rising debt cost: Q1 FY27 interest doubled to ₹24 Cr, and borrowings have more than tripled since FY24.
- Margin pressure: Margins have fallen to about 12% because of raw-material inflation.
- Supplier dependence: Reliance on BYD technology and imported components exposes Olectra to geopolitical and shipping disruption.
- Execution risk: The 2,500-delivery FY27 target is about double FY26 volumes.
- Valuation: A P/E of about 54x and price-to-book of about 7.9x leave little room for disappointment.
What to Monitor at Olectra Greentech Limited
- Operating cash flow to PAT: Watch whether it recovers towards 100% from the current 58%.
- Debtor days: Watch whether they fall below 140.
- Quarterly deliveries: The FY27 target needs a run-rate of about 625 vehicles a quarter.
- Operating margin: Watch whether it holds at 12% or recovers to 14-15%.
- Net debt and interest coverage: Track these through the Telangana capex cycle.
- Order inflow: New tenders, including CESL and state-transport orders, and the electric-truck launch in Q4 FY27.
A sustained turn to positive free cash flow would be the clearest sign that a larger dividend is possible.
Conclusion: Should You Consider Olectra Greentech Limited for Dividend Income?
The Olectra Greentech final dividend of ₹0.60 is a 50% increase and is covered 36 times by earnings. Even so, it yields only 0.05% and takes up 2.7% of profit.
Positives: 29% profit growth, the highest ROCE among its peers, a large order book and an unpledged promoter stake.
Negatives: Cash conversion fell to 58%, free cash flow is negative, debt is climbing and Q1 FY27 margins were squeezed.
The dividend tells you little about the investment case. Receivable collection and debt trends tell you much more. Readers should weigh these factors against their own goals.
Frequently Asked Questions About Olectra Greentech Limited Dividend
What dividend has Olectra Greentech announced for FY 2025-26?
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What was the Olectra Greentech dividend record date?
What was the Olectra Greentech ex-dividend date?
When will the Olectra Greentech dividend be paid?
Who was eligible for the Olectra Greentech final dividend?
How is the Olectra Greentech dividend taxed?
Is the Olectra Greentech dividend sustainable?
What is the Olectra Greentech dividend history?
Why is the Olectra Greentech payout ratio so low?
How much dividend does the Olectra Greentech promoter receive?
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Olectra Greentech Limited Dividend Article Disclaimer
This article is for information and education only. It is not investment advice or a recommendation to buy, sell or hold any security. ShareBazaar Online is not a SEBI-registered investment adviser or research analyst. Figures come from the company's exchange filing dated 29 May 2026, Screener.in consolidated data and cited public sources as of 28 September 2026, and may change. Ratios computed by ShareBazaar Online may differ from company-reported figures. Tax information is general and may not apply to your situation. Please verify details with official NSE/BSE filings and consult a qualified financial or tax professional before making any decision. Investments in securities are subject to market risks.