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

Ola Electric is transitioning from an electric vehicle (EV) manufacturer to a comprehensive energy company, backed by a fresh ₹1,500 crore fundraise aimed at strengthening its cell manufacturing and battery energy storage systems (BESS) portfolio

The company is facing challenges with declining market share in the two-wheeler EV segment, financial losses, and reduced cash reserves, but it is setting ambitious long-term goals to expand its role in India's clean-energy infrastructure

Ola Electric plans to significantly increase its cell production capacity, targeting 59 GWh by March 2026 and 20 GWh by FY27, to support both its vehicles and the country’s growing energy storage needs.

The company has launched Ola Shakti, a residential energy storage solution, with deliveries starting in January 2026, and aims to generate significant revenue from both residential and commercial BESS sectors by FY27

Ola is integrating its in-house developed 4680 Bharat cells into its EVs, reducing reliance on external suppliers and reinforcing its position as a vertically integrated business in both EV and energy sectors

Despite a 43% revenue drop in Q2 FY26, Ola Electric has managed to cut its net loss by 15% and achieved a positive EBITDA in its automotive division, indicating early signs of financial discipline

The company's stock has fallen nearly 52% year to date, reflecting investor concerns over its EV sales and financial performance, though insiders believe its energy-focused strategy could unlock long-term value

Ola Electric's planned fundraise is intended to support large-scale cell capacity building, expand BESS deployment across various sectors, and develop next-generation energy and mobility products

The strategic shift from focusing solely on EVs to becoming a key player in energy systems suggests Ola Electric is betting on future opportunities in energy grids, not just roads

While the market's response remains cautious, Ola Electric's pivot towards energy solutions marks a potential new chapter in its journey, aiming to reshape the industry once more