JBM Auto is top gainer

Electric bus makers rallied today morning after the government told the Rajya Sabha that 10,000 air-conditioned e-buses will be deployed across 116 cities in 26 states/UTs by end-2027 under the PM-eBus Sewa scheme, with a follow-on plan for another 35,000 e-buses thereafter. Olectra Greentech rose as much as 8.75% to Rs. 1,113.60, JBM Auto, the top gainer on the BSE currently,  gained up to 6.34% to Rs. 575, and Ashok Leyland added 2.92% to Rs. 166.72, as investors priced in a stronger multi-year order pipeline.

The key takeaway isn’t just the headline target, it’s the execution visibility the government hinted at: the minister noted an initial tranche of 225 buses delivered last month, tenders selected, and agreements for 6,500 buses already done, with further deliveries linked to states finalising contracts. That shifts this from a “policy intent” story to a conversion timeline story, which is exactly what markets reward in public procurement themes.

This rally today is a classic order-book re-rating trade driven by two assumptions: (1) the programme creates sustained demand that keeps OEM lines utilised through FY27, and (2) the follow-on 35,000 bus scheme extends the runway beyond the first phase. Near term, the market will differentiate less on technology claims and more on ability to win tenders, execute on time, and manage working capital, because e-bus contracts can be cash-intensive and payment cycles can be lumpy.

The Bihar comment in the statement is also a reminder of the key risk: state-level execution bottlenecks. Even with central push, delays in coordination committees, contracting, and depot/charging readiness can slow deployments. So while today’s move reflects improved visibility, the durability of the rally will hinge on whether deliveries and signings continue to track the stated cadence and which OEMs demonstrate the cleanest conversion from awarded tenders to on-road fleets.