Battery-swapping network Battery Smart plans to submit its draft IPO papers to SEBI by October. The company aims for 70-80% annual growth, leveraging its operational break-even status achieved in FY26. It currently operates over 1,500 stations across 75 Indian cities using a franchise-led business model.
Battery Smart, an electric vehicle battery-swapping network, is preparing to enter the public market with plans to file its draft red herring prospectus with the Securities and Exchange Board of India (SEBI) between September and October 2026. The company has appointed SBI Capital Markets to manage the share sale process.
Scaling the Battery-as-a-Service Model
The company operates under a battery-as-a-service model, which allows commercial electric two- and three-wheeler drivers to exchange depleted batteries for charged ones at swapping stations. This model aims to reduce the high upfront cost of electric vehicles and eliminate long charging wait times. To expand its network, Battery Smart uses a franchise-led strategy. In this setup, local entrepreneurs invest in the station infrastructure, while Battery Smart retains ownership of the lithium-ion batteries and manages the underlying technology and operations. Currently, the company manages over 300,000 batteries across more than 1,500 stations in 75 cities, serving roughly 100,000 commercial drivers daily.
Financial Context and Growth Targets
Battery Smart reported operational break-even in FY26, marking a key financial milestone. Its revenue growth has been notable, with operating revenue rising by 52% to approximately ₹250 crore in FY25, up from ₹164 crore in FY24. Supported by investors such as Tiger Global and Blume Ventures, the company had raised around USD 192 million by FY26. Management has set an aggressive target to achieve 70% to 80% annual growth over the next three to five years, focusing on increasing its density in existing markets and expanding into new cities.
Market Outlook and Investor Considerations
The battery-swapping sector is positioned to grow as India continues to shift toward electric mobility for commercial use. While the industry is expected to see long-term expansion due to government policy support, the company’s ability to sustain this growth depends on managing high capital requirements and maintaining battery quality across a large, decentralized network. Because nearly 90% of stations are operated by franchise partners, maintaining service standards and consistent battery performance will be a key factor for the company. Investors may track future updates regarding the specific timing of the IPO filing, the final valuation, and how the company plans to allocate the capital raised from the public issue to balance its aggressive expansion with operational costs.