5 EV Supply Chain Stocks to Watch in 2026

This is also supported by government initiatives such as the PM E-DRIVE Scheme, PM eBus Sewa, the PLI Scheme for Automobile and Auto Components, and the continued push for domestic manufacturing under Make in India, India’s EV supply chain is expanding across batteries, lightweight engineering, braking systems, automotive electronics, and electric buses.

As automakers increase investments in electric mobility, component manufacturers are also strengthening their technological capabilities and production capacity.

In this editorial, we explore five EV supply chain companies supporting India’s transition to electric mobility through specialised products, strong financial performance, and long-term growth opportunities.

#1 Olectra Greentech

First company is Olectra Greentech Ltd., which is one of India’s leading manufacturers of electric buses and an emerging player in the commercial (EV) segment. Olectra supplies electric buses to state transport undertakings (STUs) through government-backed procurement programs.

The company has also begun expanding into electric tippers, strengthening its presence in the commercial EV ecosystem. It’s supported by policy initiatives such as PM e-Bus Sewa and PM E-DRIVE, along with increasing electrification of public transport.

Olectra Greentech operates through two segments, Electric Vehicles (EVs) and Electrical Insulators.

Under its operating model, Olectra manufactures and supplies electric buses under the Gross Cost Contract (GCC) framework, while EVEY Trans, the operating arm of the group, undertakes bus operations and maintenance over the contract period, which typically ranges between 10 and 12 years.

Within India’s EV supply chain, Olectra occupies an important position as a manufacturer of electric buses supplied to government transport agencies and institutional customers.

According to the management, the company has deployed more than 3,600 electric buses and 116 electric tippers since inception, with its vehicles collectively covering over 500 million green kilometers.

Management also highlighted that around 5,423 electric buses were sold across India during FY26, with electric bus penetration reaching nearly 4.7% of the overall bus industry. In the 9-12 meter bus segment, penetration has already increased to around 9%.

Financial Performance

If we look at the financials, the FY26 consolidated revenue reached Rs 18,351.8 million (m), with an operating profit of Rs 2,645.6 m, resulting in an operating margin of 14.42%. Net profit reached Rs 1,641 m, translating into a net profit margin of 8.94%.

Management cited the performance of FY26 as being due to record revenue, improved profitability and higher electric bus deliveries.

The company delivered 1,280 electric buses during the year, with execution improving from the second quarter onwards. Higher production volumes, better operating leverage and consistent deliveries during the second half of the year helped support margins despite changes in product mix and increasing production capacity.

In Q4 FY26, Olectra reported revenue of Rs 6,447.2 m, compared with Rs 6,636 m in the previous quarter, with an operating profit of Rs 996.3 m, resulting in an operating margin of 15.45%.

Net profit also increased to Rs 517.2 m, translating into a net profit margin of 8.02%, compared with 5.56% in Q3 FY26. According to the management, quarterly profitability was due to the mix of electric buses delivered during the period.

Olectra Greentech Stock Price

Source: BSE

#2 NRB Bearings

Second company is NRB Bearings Ltd., which is one of India’s leading manufacturers of precision bearings and a key supplier to the automotive industry.

Established in 1965, its products are used in more than 90% of vehicles running on Indian roads, while it holds nearly 60% market share in India’s needle roller bearing segment.

NRB Bearings manufactures precision-engineered ball and roller bearings used across passenger vehicles, commercial vehicles, two-wheelers, three-wheelers, industrial equipment and off-highway applications.

The company primarily supplies Original Equipment Manufacturers (OEMs), global Tier-1 suppliers and the replacement (aftermarket) segment. Its diversified customer base ensures that revenue is not dependent on any single vehicle category or customer.

If we look at the revenue mix, two-wheelers and three-wheelers contribute around 31% of total revenue, followed by commercial vehicles at 26-29%, passenger vehicles at 17-20%, industrial applications at around 15%, while the aftermarket contributes nearly 12%.

NRB Bearings follows an “EV-agnostic” strategy, where its products are designed to serve Internal Combustion Engine (ICE), hybrid, and electric vehicle platforms.

The company has secured lifetime-nominated business worth more than Rs 7,500 m, of which nearly Rs 6,000 m comes from global Tier-1 suppliers and OEMs for hybrid and electric vehicle platforms.

Management is also focusing on higher-value products such as sensor bearings and smart motion systems, which are expected to witness higher demand as vehicle electrification accelerates.

They have said that EV-specific products are expected to maintain operating margins similar to the existing portfolio, ensuring the shift towards electric mobility remains profitable over the long term.

Financial Performance

During FY26, NRB Bearings reported consolidated revenue from operations of Rs 13,351.5 m with operating profit (EBITDA) of Rs 2,670 m, resulting in an operating margin of 19.5%. Net profit stood at Rs 1,456.3 m, reflecting a strong recovery in profitability during the year.

The company’s financial performance improved steadily during FY26 following the restoration of operations after the fire incident at its Waluj manufacturing facility in 2023, which had impacted production for nearly 18 months.

Management attributed the improvement in profitability to several structural initiatives, including higher utilisation of solar energy to reduce fuel costs, increased automation and robotisation across manufacturing processes, and successful renegotiation of raw material and logistics costs with suppliers.

In the latest reported quarter (Q4 FY26), NRB Bearings reported revenue of Rs 3,719.8 m.

Also, if we look at the shareholding patterns, the Institutional participation in NRB Bearings increased to 18.92% in June 2026, from 14.69% in March 2026, while Domestic Institutional Investors (DIIs) raised their stake from 10.06% to 13.85% during the same period.

NRB Bearings Stock Price 

Source: BSE

#3 Sharda Motor Industries

Third company is Sharda Motor Industries Ltd. (SMIL), which is one of India’s leading automotive component manufacturers and an emerging player in the EV supply chain.

With nine manufacturing facilities across India and a design center in South Korea, Sharda Motor supplies components to several domestic and global original equipment manufacturers (OEMs).

Sharda Motor operates across four major business verticals such as Emission Systems, Lightweighting Solutions, Global Business, and Supply Chain Management.

The company manufactures exhaust systems, catalytic converters, suspension components, and other precision automotive products for passenger vehicles, commercial vehicles, and off-highway applications.

The Emission Systems business remains the company’s largest revenue contributor, accounting for around 88% of total revenue during FY26. The Lightweighting business contributes nearly 9%, followed by Supply Chain Management at 2%, while the remaining 1% comes from other business activities.

Sharda Motor follows what the management describes as a “powertrain-agnostic” strategy, where many of its products can be used across ICE, hybrid, and EV platforms. This approach allows the company to participate in the EV transition without depending exclusively on EV production.

The company’s lightweight suspension components, particularly control arms and links, are increasingly being supplied for new EV programs.

According to the management, reducing vehicle weight has become a key priority for EV manufacturers, with a 10% reduction in vehicle weight capable of improving EV driving range by nearly 13.7%. This has created significant demand for advanced lightweight components.

Financial Performance

During FY26, Sharda Motor Industries reported consolidated revenue from operations of Rs 33,968 m with an operating profit (EBITDA) of Rs 4,191 m, while net profit stood at Rs 3,454 m.

This performance was supported by higher demand from OEM customers and improved business across its core product segments.

Management, however, clarified that a significant part of the increase in revenue was because of the pass-through of higher catalyst prices. As catalyst costs are directly linked to precious metal prices, higher raw material costs increase reported revenue without proportionately improving profitability, leading to temporary moderation in margin percentages.

In the latest reported quarter (Q4 FY26), the company reported revenue of Rs 9,718 m. The operating margin stood at 11.6%, while net profit reached Rs 894 m, resulting in a net profit margin of 8.9%.

Management also stated that margins during the year were impacted by strategic investments aimed at supporting long-term growth. These included higher spending on global business development, strengthening its mergers and acquisitions (M&A) team, expanding research and development capabilities, and engaging specialised consultants to accelerate growth across new business verticals.

Sharda Motor Stock Price 

Source: BSE

#4 Fiem Industries

Fourth is Fiem Industries Ltd., which is one of India’s leading automotive component manufacturers and has emerged as an important supplier within the country’s EV ecosystem.

The company is engaged in manufacturing automotive lighting systems, signalling equipment, and rear-view mirrors for two-wheelers and passenger vehicles.

Over the years, Fiem has evolved from a conventional auto component manufacturer into a technology-driven supplier, supported by continuous investments in product development and electronics.

Fiem Industries primarily manufactures automotive lighting systems, signalling equipment, rear-view mirrors and related automotive components for original equipment manufacturers (OEMs).

The automotive business contributes around 99.77% of the company’s total revenue, making it the primary growth driver. Within this segment, domestic OEMs account for nearly 93.12% of sales, followed by the domestic replacement market at 5.02% and exports at 1.86%.

According to the management, the company is currently working with almost all major EV OEMs in India, giving it an early advantage as the domestic EV market expands.

Management highlighted the company’s product development pipeline has now become almost entirely LED-based, aligning with the technology requirements of modern EVs.

Fiem currently supplies components to leading EV manufacturers, including OLA Electric, Ather Energy, Ampere, Revolt Motors, Tork Motors, Okinawa, 22Motors, and Bounce Infinity. 

The company has recently received approval for Hero MotoCorp’s upcoming electric vehicle platform, which management believes could create meaningful business opportunities over the coming years.

Financial Performance

During FY26, Fiem Industries reported consolidated revenue from operations of Rs 28,156.09 m with an operating profit (EBITDA) of Rs 3,933.42 m, and an operating margin of 14.09%.

The profit after tax stood at Rs 2,555.84 m.

The management attributed the strong growth to higher production volumes from key customers, including TVS Motor, Royal Enfield and Yamaha, along with improved operating leverage and greater integration across manufacturing operations. Continued focus on cost optimisation and manufacturing efficiencies also supported profitability during the year.

In Q4 FY26, the company reported revenue of Rs 7,443.5 m and management indicated that demand remained strong across both conventional and EV programs, while the increasing contribution from LED lighting products and disciplined cost management helped maintain operating margins during the quarter.

Fiem Industries Stock Price

Source: BSE

#5 ASK Automotive

Fifth is ASK Automotive Ltd., which is one of India’s leading automotive component manufacturers and has emerged as an important player in the country’s evolving EV supply chain.

Established in 1988, the company has built a dominant position in advanced braking systems for two-wheelers, with an estimated 50% share of the domestic market.

Over the years, ASK Automotive has expanded beyond conventional braking products into lightweight aluminium components and precision engineering solutions that support both internal combustion engine (ICE) and electric vehicle platforms.

The company generates revenue through three major business segments: Advanced Braking Systems (ABS), Aluminium Lightweight Precision Solutions (ALPS) and Safety Control Cables (SCC).

The Aluminium Lightweight Precision Solutions (ALPS) business is currently the largest contributor, accounting for around 51% of total revenue, followed by Advanced Braking Systems at 39% and Safety Control Cables at 4%.

ASK Automotive is steadily strengthening its presence across India’s EV supply chain through products that are specifically designed for electric vehicles. As per the management, EV-related revenue currently contributes around 4.5% of the business and is expected to grow as EV adoption accelerates.

The company manufactures several EV-focused components, including battery pack housings, electric motor housings and geared pulleys, while continuing to supply lightweight aluminium products that help improve vehicle efficiency.

Management highlighted that the content value per vehicle is nearly 40-50% higher in EVs compared to conventional ICE vehicles, creating a significant long-term growth opportunity.

In recent earnings calls, management stated that although the overall EV industry is currently witnessing single-digit growth, the company remains well prepared to scale rapidly as market penetration improves.

ASK Automotive Stock Price 

Source: BSE

Financial Performance

During FY26, ASK Automotive reported consolidated revenue from operations of Rs 41,763.2 m with an operating profit of Rs 5,510 m, resulting in an operating margin of 13.1%. The profit after tax was Rs 2,973.2 m, with a net margin of 7.1%.

In Q1 FY27, the company reported quarterly performance, reporting revenue of Rs 13,610 m with operating profit reaching Rs 1,640 m and an operating margin of 12%, while the net profit stood at Rs 850 m, resulting in a net profit margin of 6.3%.

Management attributed the strong revenue growth to healthy demand across its core product segments and continued expansion of its aluminium lightweighting business.

During the quarter, the company also completed the phase-out of its low-margin wheel assembly business, allowing it to sharpen its focus on higher-margin product categories.

Conclusion

India’s EV supply chain may offer long-term growth opportunities as electric mobility adoption continues to accelerate across the country.

However, investors should carefully evaluate factors such as customer concentration, execution capability, technological competitiveness, order visibility, capacity expansion plans, and overall financial performance before making any financial decision.

As the sector remains highly competitive and policy-driven, investments should be aligned with an individual’s financial goals, investment horizon, and risk appetite rather than relying solely on the industry’s growth potential.

Happy investing.

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