Scooters sidelined, Ola Electric’s “structural reset” shifts to battery storage, but a 55% revenue plunge to ₹4.7 billion leaves investors questioning execution and direction.
Ola Electric has announced a shift in focus, moving away from its earlier emphasis on rapid e-scooter expansion to prioritise battery energy storage systems (BESS). The company’s Q3FY26 results, released on February 16, 2026, outlined what founder Bhavish Aggarwal described as a “structural reset”, centred on the newly launched Ola Shakti BESS business.
The announcement comes amid mounting investor concerns. Ola’s stock has fallen sharply, closing 63% below its IPO price of ₹76, erasing over ₹560 billion in shareholder wealth since its peak in August 2024. Moreover, the company’s overall revenue fell by 55% year-on-year to only ₹4.7 billion.
Brokerages including Citi, Emkay Global and Kotak Securities have downgraded the stock to ‘sell’, warning that recovery could be prolonged as competitors strengthen their positions.
According to a report by the Financial Express, Aggarwal projected revenue potential of ₹150–200 billion from the BESS segment in the coming years, supported by plans to expand the company’s Gigafactory capacity to 6 GWh of in-house ‘4680 Bharat cells’ by March 2026, up from 2.5 GWh currently.
This marks a reversal from earlier scaled-down targets, reflecting renewed ambition in the energy storage market.
Financial performance, however, remains under pressure. In Q3FY26, Ola reported ₹90 million in cell-segment revenue against operating expenses of ₹510 million, despite production volumes doubling quarter-on-quarter.
The company is positioning Ola Shakti as a replacement for home inverters, a market dominated by established players such as Exide Industries, Amara Raja Energy & Mobility and Luminous Power Technologies.
Meanwhile, Ola’s core two-wheeler business has faced repeated revisions. Monthly breakeven sales targets have been reduced from 50,000 scooters in Q3FY25 to 15,000 in the latest guidance, with no clear timeline. Revenue forecasts for FY26 have also been cut to ₹30-32 billion from earlier estimates of ₹42-47 billion.
Analysts argue that while course corrections are common in evolving markets, Ola’s frequent pivots risk undermining strategic clarity. For investors, the central question remains whether the company’s agility represents necessary adaptation or a lack of consistent direction.
