India’s electric vehicle (EV) sector has strong long-term potential, especially if crude oil prices remain elevated. Since India imports most of its crude oil, higher fuel prices translate to increased petrol and diesel costs, making EVs more economical for retail customers and commercial fleet operators.
EV adoption is already accelerating in two-wheelers, three-wheelers, buses, and urban delivery fleets due to their lower running and maintenance costs. Government incentives, battery manufacturing schemes, and a growing charging infrastructure are also supporting growth.
Over the next decade, India could see a rapid electrification of public transport, logistics, and affordable mobility. Rising renewable-energy capacity also improves the long-term economics of EV charging.
Here are three EV stocks with high returns on capital employed (ROCE) that are worth watching. They all have an ROCE above 20% and a proven track record of profitability and dividends for the last three years. Some also have a presence in petrol and diesel vehicles.
#1 Olectra Greentech
Olectra Greentech is India’s largest pure electric bus manufacturer, with manufacturing facilities in Hyderabad. It is also India’s first ever electric bus maker, having manufactured and deployed several variants of such vehicles. The company is now expanding its product line in the e-mobility segment to include electric trucks and electric tippers – heavy-duty, battery-powered dump trucks designed for transporting and unloading materials.
The company has an ROCE of 20.1% and has been consistently reporting profits for the past several years.
The company delivered 385 EVs in Q3 FY26 compared to 282 in Q3 FY25, marking 37% growth. Revenue for the quarter was ₹663.60 crore, up 29% year-on-year, driven by strong performance across both segments.
Ebitda was ₹97.10 crore, up 19% year-on-year. Net profits came in at ₹46.70 crore, broadly flat year-on-year.
The company led the electric bus segment in Q3 with a 29% market share, securing the top position with 399 vehicle registrations.
Evey Trans Private, as associate company OF Olectra Greentech, has received two letters of award (LOAs) from the Telangana State Road Transport Corporation (TGSRTC) to supply, operate and maintain 1,085 electric buses. Olectra will receive about ₹18 billion for the supply of these 1,085 buses.
The company’s long-term growth is fuelled by India’s emphasis on electric public transportation, an increase in state transport tenders, and the growing adoption of electric buses. It has strong partnerships, is expanding, and has a first-mover advantage in e-buses. Its insulator business provides an added layer of diversification.
#2 JBM Auto
JBM Auto is an Indian auto components and mobility company that has evolved from a traditional sheet-metal and auto parts maker into a broader EV and public transport play.
A major growth driver is its electric bus business under the JBM Group. The company has been supplying electric buses to several Indian cities and positioning itself as an integrated clean mobility player.
JBM has built a fully integrated EV ecosystem, spanning in-house R&D, advanced battery systems, intelligent drivetrains, and digital fleet management. Its proprietary JBM E-Verse platform powers smart connected mobility solutions across diverse markets.
The company has an ROCE of 20.4% and has been consistently reporting profits for the past several years.
Sales including other operating income stood at ₹1,614 crore compared to ₹1,396 crore in Q3 FY25, an increase of 15.6%. Ebitda increased 5.24% to ₹202.93 crore from ₹192.83 crore in Q3 FY25. Net profit rose 4.29% to ₹54.68 crore from ₹52.42 crore in Q3 FY25.
JBM recently deployed 500 intercity buses in Telangana and 312 buses in Delhi. Its prospects look promising as it emerges as a major beneficiary of India’s public transport electrification push.
#3 Hyundai Motor India
Hyundai Motor India, a subsidiary of Hyundai Motor Company is the country’s leading automobile manufacturer.
It manufactures models such as Grand i10 NIOS, i20, i20 N Line, Aura, Exter, Venue, Creta and others. The company has made aggressive moves in the EV space. Its current EV lineup includes the Hyundai Creta Electric and the premium IONIQ 5. It is focusing mainly on electric SUVs, premium technology, longer driving range, and localising EV production.
Hyundai Motor India clocked total net sales of ₹18,916.20 crore in Q4 FY26 vs ₹17,940.3 crore a year earlier. Net profit dropped to ₹1,255.60 crore from ₹1,614.30 crore.
New electric SUV launches and local battery sourcing could strengthen Hyundai’s long-term position in India’s rapidly growing EV market. The company has good long-term prospects in India because of its established brand, wide service network, strong SUV portfolio led by the Creta, and growing focus on EVs. The company is expanding production capacity at its Talegaon plant and plans several new launches, including a localised compact EV aimed at the mass market.
However, competition has intensified sharply. Some competitors have overtaken Hyundai Motor India in domestic passenger vehicle sales due to its aggressive SUV and EV launches.
Investors should evaluate a company's fundamentals, corporate governance, and stock valuations before making an investment decision.
Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.
This article is syndicated from Equitymaster.com.