Olectra Greentech shares fell nearly 4% in early trade on Friday after the company reported largely flat net profit for the June quarter, despite strong growth in revenue and EBITDA. The stock came under pressure as the rise in operating profit was not enough to offset the decline in margins.
The stock was trading at Rs 1,342.6 on the NSE around 10 am, down from its previous close of Rs 1,393.5.
The company's net profit declined 0.4% year-on-year to Rs 25.9 crore, while revenue rose 66% to Rs 576 crore. EBITDA increased 46.6% to Rs 69.2 crore, but the EBITDA margin narrowed to 12% from 13.6% a year ago.
Why Are The Stocks Falling?
Olectra Greentech reported a net profit of Rs 25.9 crore for the quarter, down 0.4% from Rs 26 crore in the corresponding period last year.
However, the company's revenue from operations rose by 66% year-on-year to Rs 576 crore from Rs 347 crore. The sharp increase in revenue was accompanied by a 46.6% rise in Ebitda to Rs 69.2 crore, compared with Rs 47.2 crore a year ago.
The stronger operating performance was reflected in the company's Ebitda, but margins moderated during the quarter.
Olectra Greentech's Ebitda margin declined 160 basis points year-on-year to 12% from 13.6%.
The combination of strong revenue growth and lower margins meant that the increase in operating profit did not result in a corresponding improvement in the bottom line. Net profit remained broadly flat compared with the year-ago period.
Stock Price Movement
Olectra Greentech shares have gained around 11.8% so far in 2026, although the stock is down more than 3% over the past week, including Friday's decline.
The stock is currently trading at a price-to-earnings multiple of 63.5 times, with a market capitalisation of Rs 11,020.9 crore.
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