CBAK Energy (NASDAQ: CBAT) has secured an approximately $96 million battery-cell order from a major Indian electric two- and three-wheeler manufacturer, with deliveries scheduled for 2027.

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To put that number in perspective, CBAK generated $195.2 million in total revenue in 2025. So this single order is equivalent to nearly half of the company's entire revenue last year.

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The customer, which CBAK did not identify, has previously purchased smaller quantities of batteries from the company. The new agreement represents a significant expansion of that relationship and is expected to bring the CBAK manufacturing facility assigned to the order to full capacity.

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For a small battery manufacturer, that's important. Factories are expensive. The economics tend to improve when production lines are running closer to capacity because fixed manufacturing costs can be spread across more batteries.

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Of course, CBAK now needs to prove it can turn that higher utilization into better margins.

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Battery sales are already accelerating

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The $96 million order comes as CBAK's battery business is growing rapidly.

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During the first quarter of 2026, the company generated $69.6 million in total revenue, up 99% from $34.9 million a year earlier.

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Revenue from its battery business increased 84% to $37.5 million, while sales of batteries used in light electric vehicles jumped 442% to $15.4 million.

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Production volumes are moving in the same direction.

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Through the first seven months of 2026, CBAK shipped 32.55 million Model 32140 cylindrical battery cells, up 101.5% from the same period last year. The company had already shipped more of these cells through July than it did during all of 2025. And this latest order gives CBAK considerably more visibility into that growth heading into 2027.

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India could become an important market

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India is particularly interesting because electric two- and three-wheelers represent a very different EV opportunity than the one investors typically associate with companies such as Tesla.

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Two-wheelers are a major form of transportation in India, and the country's electric two-wheeler market has been expanding quickly.

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India was the world's second-largest electric two-wheeler market in 2025, with sales approaching 1.3 million units. Yet electric models still accounted for only around 6% of overall two-wheeler sales.

That leaves considerable room for further adoption.

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CBAK doesn't need to predict which electric scooter manufacturer ultimately dominates the Indian market. Its opportunity is supplying the batteries those manufacturers need as production increases.

And there could be another large order coming, too.

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CBAK says it's discussing a separate large-volume battery-cell order with another Indian customer that has historically ranked among its biggest customers. Management expects a significant order in the near term.

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Profitability remains the problem

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Revenue growth isn't CBAK's biggest challenge right now. Margins are.

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Despite nearly doubling total revenue during the first quarter, CBAK generated just $1 million in gross profit. Gross margin fell to 1.5%, compared with 13.7% during the same period last year.

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The company also reported an operating loss of $9.7 million and a net loss attributable to shareholders of approximately $9.3 million. That’s not trivial. 

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Management attributed much of the margin pressure to higher raw-material costs and expenses associated with ramping three new production lines. The company expects profitability to improve as those lines reach higher utilization levels and pricing adjustments take effect.

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The $96 million order could certainly help with utilization.

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But CBAK still has to demonstrate that selling substantially more batteries translates into substantially better economics.

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What’s next?

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CBAK now has something many speculative battery companies struggle to produce: large-scale customer demand.

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Revenue is growing. Battery shipments are accelerating. A major Indian customer has committed approximately $96 million to future purchases. And CBAK says another significant Indian order could be coming.

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But the investment case ultimately comes down to margins.

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If higher production volumes and factory utilization push gross margins back toward historical levels, CBAK could look considerably different over the next couple of years.

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If margins remain near current levels, rapidly growing revenue won't mean nearly as much.

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