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

Ola Electric on Thursday announced its foray into the energy storage space with the launch of ‘Ola Shakti’, the first residential battery energy storage system (BESS). The launch marks the company’s diversification beyond its core electric vehicle business and its entry into a market that is expected to attract investments worth about $35 billion over the next five years, according to the Indian Energy Storage Alliance (IESA).

Founder and CEO Bhavish Aggarwal said the company’s move into this 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 electric vehicle operations.

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

Likewise, the much-awaited roadsters 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 has been delayed until August 2025, with deliveries starting just a month later. Now, with Ola Shakti bookings opening immediately and deliveries scheduled to begin in January 2026, the move raises questions on whether the new product launch has been timed to boost investor sentiment.

The new revenue stream could help Ola Electric narrow losses and move closer to profitability amid its shrinking market share. With revenues falling and losses continuing, the company reported a loss of Rs 428 crore in the first quarter of fiscal 2025, while the second quarter results are still awaited.

Once accounting for nearly 50% of India’s e-scooter market, Ola Electric’s share has fallen to around 12% as of September 2025, while rival Ather Energy has expanded its share to 17%, up from 13% in Q1FY25.

Despite the increasing challenges, the stock market seemed optimistic. Ola Electric shares rose 5% after the launch announcement. But concerns remain about the company’s financial health and operational consistency.

Ola Electric is currently facing a daily penalty of over Rs 12 lakh under the government’s Production Linked Incentive (PLI) scheme for missing deadlines at its mega factory. In its latest quarterly results, Aggarwal admitted that the company could face penalties of up to Rs 100 crore, though he maintained that PLI incentives were not necessary to maintain profitability.

But industry watchers remain cautious. Ola’s Shakti BESS launch “deserves serious scrutiny,” said Jayant Mundra, an independent business analyst and former Bain & Company analyst.

“It follows a familiar playbook: create hype for a new product to distract from existing problems. The S1 scooter is delayed by several months, and the Roadster is delayed by almost half a year. This is the pattern. The biggest red flag is that Shakti relies on cells from Ola’s Gigafactory. This is the same factory that has missed its own deadlines so much that it faces penalties.” Under the government’s PLI scheme. How can a product be on time when its core components facility is not? This announcement appears to be a strategic diversion from losses, production and quality issues.

Concerns about consumer safety and reliability also loom large. When asked about this, Agarwal said the launch “is a huge amplification of our giant factory and adds another dimension to the demand for our cells,” without directly addressing questions about safety assurances or production timelines.

Satish Meena of Datum Intelligence noted that the company’s approach reflects that of startups rather than auto manufacturers.

“They launch products before they are properly tested, prioritize speed to market and use consumers for testing rather than spending enough time on reliability. This approach, where the launch seems to be early just to give investors something to calm them down, is where the product ultimately suffers.”

Mundra echoed a similar warning regarding the company’s January 2026 delivery target.

“It is wiser to wait for proof of production than to place an order based on a promise that 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 foster more than just investor optimism — and deliver on time.