Amid Sliding EV Sales, Ola Electric Banks on Fresh ₹1,500 Cr to Power Its Energy Ambitions

When Ola Electric entered India’s EV market, it did so with the ambition of reshaping how the country thinks about mobility. But today, the company finds itself at a very different inflection point—one where mobility is only one part of a much larger story. The homegrown EV manufacturer is now sharpening its pivot toward becoming a full-fledged energy company, and a fresh ₹1,500 Cr fundraise, recently approved by its shareholders, is expected to fuel this transformation.

The approval comes as Ola Electric battles market-share erosion in the two-wheeler EV category, high losses, and shrinking cash reserves. Yet, at the same time, the company is also laying down one of its most ambitious long-term growth plans—building large-scale cell manufacturing, expanding into battery energy storage systems (BESS), and rolling out new products that could define its next phase.

Ola's New Shot of Capital—And a Clearer Purpose

In a recent exchange filing, Ola Electric confirmed that shareholders have cleared the proposal to raise up to ₹1,500 Cr. The fundraise could take multiple routes—further public offer, rights issue, QIP, private placement, or any other permitted structure. The board had already approved this move last month.

The focus of this capital infusion is unambiguous:

• Ramp up the cell manufacturing business

• Expand the battery energy storage systems portfolio

• Strengthen post-sales production

• Support new product development

This signals a strategic shift: Ola is no longer positioning itself merely as a maker of EVs, but as an ecosystem player laying the foundation for India’s clean-energy infrastructure.

From EV Maker to Energy Player

The timing is crucial. Ola Electric has seen a sharp dip in two-wheeler EV market share, even as it struggled with widening losses. But the company’s Q2 FY26 update sheds light on a different story—a story of long-term bets.

Ola Electric revealed that it has successfully commissioned 2.5 GWh of cell production capacity and is now on track to reach:

• 5.9 GWh by March 2026, and

• 20 GWh by FY27

This scale is essential for what Ola plans next: powering not just its vehicles, but also India’s growing demand for energy storage.

The Big Bet: Battery Energy Storage Systems (BESS)

In October, Ola Electric stepped into the residential energy storage market with Ola Shakti, its BESS offering designed for homes. Deliveries are expected to begin in January 2026, and the company is projecting:

• ₹100 Cr revenue by Q4 FY26, and

• ₹1,000–2,000 Cr annual revenue in FY27

But residential storage is only one part of the plan.

In its Q2 shareholder letter, Ola also disclosed its intention to enter the commercial and utility-scale BESS segment, with solutions ranging from 100 kWh to 5 MWh. These containerised systems target industrial and grid-level energy storage—a fast-growing category as India upgrades its infrastructure to support renewable energy.

This marks a pivotal moment: Ola Electric is quietly positioning itself in a sector where long-term demand is expected to explode.

4680 Bharat Cells Begin Rolling Into EVs

Parallel to its energy ambitions, Ola Electric is strengthening the heart of its vehicles—batteries.

The company announced that it has begun integrating its in-house developed 4680 Bharat cells into its EVs. Over the next 6–9 months, Ola expects all its vehicles to transition to these domestically produced cells.

This move not only reduces dependency on external suppliers but also reinforces its identity as a vertically integrated EV-and-energy business.

A Tough Quarter—But Signs of Discipline

Despite these forward-looking plans, Ola Electric’s latest results paint a mixed picture.

Financial Snapshot — Q2 FY26

• Consolidated net loss reduced to ₹418 Cr, down 15% from ₹495 Cr YoY

• Revenue fell sharply by 43% YoY, from ₹1,214 Cr to ₹690 Cr

• Automotive business turned EBITDA positive, delivering ₹2 Cr EBITDA, compared to a ₹162 Cr loss last year

• Net cash reserves dipped by ₹294 Cr during the quarter

These numbers underline a company that’s still contending with operational challenges, while also showing early signs of course correction—especially in profitability for its automotive division.

Ola has explicitly stated that it will now focus on profitability over market share, a notable shift in strategy.

Stock Continues to Struggle

The market, however, has not been forgiving.

Ola Electric’s stock has dropped nearly 52% year to date, signalling investor concerns over declining EV sales and sustained losses. As of 12:40 PM IST today, the stock was trading flat at ₹41.40 on the BSE.

Yet, insiders argue that the company’s energy-focused roadmap could unlock long-term value—if Ola executes well. Ola Electric’s journey right now is less about scooters and more about systems—energy systems, manufacturing systems, and growth systems.

The upcoming fundraise, if successful, could give the company the buffer it needs to:

• Build large-scale cell capacity

• Ramp BESS deployment across home, commercial, and utility sectors

• Develop next-gen energy and mobility products

For a company that once disrupted the ride-hailing and EV markets, this could be the start of its next big reinvention.

Whether the market rewards this pivot or waits cautiously on the sidelines remains to be seen. But one thing is unmistakably clear: Ola Electric is betting its future not just on roads, but on grids.