Electrovaya (NASDAQ:ELVA) reported third-quarter fiscal 2026 revenue of $17.7 million, up from $17.1 million a year earlier, while highlighting a recently announced commercial agreement with Amazon, the launch of its ElvaPulse stationary energy-storage system and progress toward opening its Jamestown, New York, manufacturing facility.
Chief Executive Officer Raj DasGupta described the period as a “strategic inflection quarter,” while acknowledging that revenue came in below the company’s expectations due to delivery timing. Electrovaya said approximately $5 million of high-voltage battery-system deliveries expected in fiscal 2026 have moved into the first quarter of fiscal 2027 because of supply-chain constraints. Delays in certain material-handling projects also affected third-quarter results and are expected to have some fourth-quarter impact.
Margins Improve Despite Delivery Delays
Third-quarter gross margin rose to 34.9% from 30.8% in the prior-year period. Chief Financial Officer John Gibson said results benefited from product mix, including higher-margin defense shipments and prototype shipments, as well as gradual structural margin improvements in material-handling products as purchasing scale and factory efficiency improve.
Adjusted EBITDA increased 27% year over year to a record $3.7 million, representing 20.7% of revenue. Net profit was $0.3 million, compared with $0.9 million in the prior-year quarter, while operating profit declined to $0.8 million from $1.9 million. Gibson attributed the reduction in operating profit primarily to higher selling, general and administrative expenses and $1.8 million of non-cash stock-based compensation.
- Nine-month revenue increased 18.5% to $51.3 million.
- Nine-month gross margin increased to 33.8% from 30.8%.
- Nine-month adjusted EBITDA rose 56% to $8.5 million.
- Nine-month net profit increased to $2.4 million from $1.3 million.
The company generated $8.6 million of cash from operating activities during the quarter. However, cash used in operating activities totaled $17.4 million for the first nine months, which management said reflected working-capital timing, including higher accounts receivable, inventory and prepaids. Gibson said Electrovaya collected more than $15 million from customers within two weeks after quarter-end.
At June 30, Electrovaya had $13.1 million of unrestricted cash, more than $7.8 million available under its bank facility, and total debt of $38.3 million. The company reported net working capital of $65.9 million and a current ratio of 7.5.
Amazon Agreement and Warrant Structure
DasGupta said the company’s July 14 commercial agreement with Amazon formalizes and expands an existing relationship. Amazon was Electrovaya’s largest end customer in fiscal 2025, according to management. The agreement provides a framework for potential collaboration in material handling, robotics and stationary energy storage, although future orders will continue through the normal commercial process.
Gibson said the related warrant arrangement includes an initial vesting component and a revenue-based component. The initial portion is expected to be recognized as a non-cash reduction of reported revenue over a vesting period of between seven and 10 years, with the final Black-Scholes valuation to be disclosed in fourth-quarter financial statements.
The revenue-related warrants consist of 100 tranches tied to $2.8 million revenue milestones, representing an aggregate $280 million revenue target. Gibson said the value of those warrants would affect revenue as applicable milestones vest. He added that the warrants may be exercised for cash or, where permitted, on a cashless basis, and the ultimate dilution will depend on the number of vested warrants, exercise price, share price and settlement formula.
Energy Storage Launch and Jamestown Progress
Electrovaya recently launched the ElvaPulse 1500, a containerized stationary energy-storage product aimed at high-power applications, including AI data centers and critical infrastructure. The system uses a 1,500-volt DC architecture and can provide up to 2.88 megawatt-hours of nominal energy and up to approximately 9 megawatts of power, according to the company.
Management said it has begun UL 1973 and UL 9540 certification activities and is targeting completion in the first quarter of calendar 2027. Electrovaya is accepting production reservations and expects initial ElvaPulse deliveries in the second quarter of calendar 2027 from Jamestown.
During the question-and-answer session, DasGupta said Electrovaya is in discussions with multiple potential energy-storage customers and developers. He said that securing even one data-center project could use the company’s initial production capacity, but the company remains focused on completing certification before commercial deliveries begin.
At the Jamestown facility, dry-room construction has been completed, while electrical and HVAC upgrades continue. The company said its major manufacturing equipment has been built and will undergo an approximately eight-week factory acceptance test in South Korea before shipment. DasGupta said Jamestown will enter a startup and validation period in the first quarter of calendar 2027, with revenue expected to begin in the second quarter.
High-Voltage, Defense and Technology Development
Electrovaya said it completed UL 2580 safety certification for six next-generation high-voltage battery-system models intended for integrated material-handling vehicles operating in outdoor conditions. Management expects high-voltage platforms to become a meaningful revenue contributor starting in fiscal 2027.
DasGupta said the company currently has more orders for 800-volt systems than it can fulfill, with deliveries constrained by supply-chain and production complexities associated with a new product. He said management expects those constraints to be resolved by the company’s fiscal first quarter, allowing deliveries to ramp.
The company also continued defense shipments, including development of an 800-volt, 100-kilowatt-hour hybrid-drive battery for a defense contractor. Commercial robotics deliveries continued during the quarter, while Electrovaya has shipped prototype systems to a North American fuel-cell manufacturer for testing and evaluation.
Management said it is advancing solid-state battery research, producing approximately 1 amp-hour cells and working toward 5 amp-hour cells. It is also developing a thinner ceramic separator and commissioning a 24-volt niobium-oxide module designed for charge and discharge rates of up to 20C. DasGupta said the company is evaluating data-center energy storage and robotics as potential applications for the niobium-oxide technology.
About Electrovaya (NASDAQ:ELVA)
Electrovaya is a Canada-based energy storage company that designs and manufactures advanced lithium-ion battery systems and components. The company’s core business revolves around the development of proprietary electrode and cell technologies that deliver high energy density, rapid charge capability and enhanced safety features. Electrovaya’s product portfolio encompasses large-format battery cells, modules, complete battery packs and integrated energy storage systems tailored to industrial, commercial and utility-scale applications.
In the industrial sector, Electrovaya supplies modular battery systems for material-handling equipment such as electric forklifts, automated guided vehicles and airport ground support vehicles.
