Can Ola Shakti deliver? Ola Electric’s risky pivot as core business stutters

Ola Electric on Thursday announced its entry into the energy storage space with the launch of ‘Ola Shakti’, its first residential Battery Energy Storage System (BESS). The launch marks the company’s diversification beyond its core electric vehicle business and entry into a market projected to attract around $35 billion in investments over the next five years, according to the India Energy Storage Alliance (IESA).

Founder and CEO Bhavish Aggarwal said the company’s move into the segment was a natural progression. “We have already built world-class battery and cell technology for electric mobility,” he said, adding that the new solution leverages the same expertise developed for its EV operations.

However, the foray comes at a time when Ola Electric is still grappling with execution delays across its existing product lines. The company has faced repeated postponements in the delivery of its S1 Z and Gig/Gig+ scooters, which were initially scheduled for launch in April 2025 but have now been pushed to the end of the year.

Similarly, its much-anticipated Roadster bikes have also seen delays. Ola had earlier announced plans to deploy its in-house 4680 cell technology in scooters by mid-2024, but the rollout was deferred until August 2025, with deliveries starting only a month later. Now, with Ola Shakti bookings opening immediately and deliveries slated to begin January 2026, the move raises questions about whether the new product launch is timed to bolster investor sentiment.

The new revenue stream could help Ola Electric narrow losses and inch closer to profitability amid shrinking market share. With revenues dropping and losses persisting, the company reported a loss of Rs 428 crore in Q1 FY25, while its Q2 results are awaited.

Once commanding nearly 50% of India’s e-scooter market, Ola Electric’s share dropped to around 12% as of September 2025, while rival Ather Energy has expanded its share to 17%, up from 13% in Q1 FY25.

Despite mounting challenges, the stock market appeared optimistic. Ola Electric shares rose 5% following the launch announcement. But concerns persist over the company’s financial health and operational consistency.

Ola Electric currently incurs around a daily penalty of over Rs 12 lakh under the government’s Production Linked Incentive (PLI) scheme for missing deadlines at its gigafactory. In its last quarterly results, Aggarwal had acknowledged that the company may face penalties of up to Rs 100 crore, though he maintained that PLI incentives were not essential for sustaining profitability.

Industry observers, however, remain cautious. Jayant Mundhra, an independent business analyst and former Bain & Company Analyst, said Ola’s Shakti BESS launch “deserves serious scrutiny.”

“It follows a familiar playbook: create hype for a new product to distract from existing problems. The S1 scooter was delayed by months, and the Roadster was nearly half a year late. This is a pattern. The biggest red flag is that Shakti depends on cells from Ola’s Gigafactory. This is the same factory that is so far behind its own deadlines that it’s reportedly facing penalties under the government’s PLI scheme. How can a product be on time when its core component facility isn’t? This announcement looks like a strategic diversion from losses, production and quality issues.”

Concerns over consumer safety and reliability also loom large. When asked about this, Aggarwal said the launch “is a great amplification of our gigafactory and adds another dimension to the demand of our own cells,” without directly addressing questions on safety assurances or production timelines.

Satish Meena, from Datum Intelligence, noted that the company’s approach mirrors that of a software startup rather than an auto manufacturer.

“They are launching products before testing them properly, prioritising speed to market and using consumers for testing rather than spending sufficient time on reliability. This approach, where it looks like the launch is early just to give something to investors to calm them down, is where the product ultimately suffers.”

Mundhra echoed a similar caution regarding the company’s January 2026 delivery target.

“It’s wiser to wait for proof of production than to place an order based on a promise history has taught us to question,” he said.

As Ola Electric expands beyond mobility into energy storage, the coming months will test whether Ola Shakti can power more than just investor optimism—and deliver on time.