Most people have never heard of Electrovaya (TSX: ELVA), a Canada-based battery maker valued at a market cap of $720 million.
The Mississauga-based battery company operates in a corner of the market that gets little mainstream attention. It makes lithium-ion batteries for industrial use, including forklifts, robots, airport ground equipment, and defence applications.
Here’s why I believe the TSX tech stock is poised to deliver game-changing returns over the next decade.
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The bull case for this Canadian tech stock
In fiscal Q2 2026 (ended in March):
- Electrovaya reported revenue of US$18 million, an increase of 20% year over year. In the last six months, sales rose by 28% to US$33.6 million.
- It reported a net income of US$2.1 million in the first half of 2026, compared to just US$400,000 in the year-ago period. In this period, operating profit almost tripled to US$3.6 million.
- Electrovaya improved its gross margins from 31.1% to 33.4% in the last 12 months.
- The company ended Q2 with US$20.4 million in unrestricted cash, a current ratio of 7.7, and net working capital of US$57.8 million.
Chief Financial Officer John Gibson noted that roughly US$1.4 million in finished goods remained unsold at quarter-end solely due to supply chain delays.
Once those ships are shipped, revenue growth should accelerate. “Revenue is only recognized once the units are delivered to customers,” Gibson said on the call.
The US$100 million to US$125 million revenue pipeline the company regularly cites covers only its material-handling business and excludes verticals such as robotics, defence, airport ground support, and energy storage.
Robotics is already the company’s second-largest revenue source after material handling. In the most recent quarter, Electrovaya shipped 300 battery packs for robotic applications. CEO Rajshekar Das Gupta said on the May 14 call that the company is working with “a handful of OEM partners” and adding more. “These are often very large companies,” he added.
The company is developing both AC-coupled 1,500-volt and DC-coupled 800-volt energy storage systems, targeting high-power mission-critical applications where competition is limited. Das Gupta called the initial reception from potential customers “very strong.”
Additionally, products built at the company’s Jamestown, New York, gigafactory will qualify for up to 40% investment tax credits under domestic manufacturing rules.
The facility is also powered by 100% renewable electricity from Niagara Falls, which keeps operating costs low. Electrovaya plans to install its own energy storage systems at Jamestown instead of diesel generators.
What separates Electrovaya from most battery companies is its proprietary ceramic separator technology. This fully ceramic-coated cell design delivers superior thermal stability, translating into exceptional safety and a far longer cycle life than conventional lithium-ion batteries. The company claims a potential cycle life of 9,000 to 14,000 cycles.
What next for the TSX tech stock?
Electrovaya is developing a fast-charging cell that uses a niobium oxide anode and its Infinity platform.
In-house testing is already achieving five-minute charge and discharge times at rates above 10C. Sampling is targeted for later in 2026, with commercial availability expected in 2027.
Solid-state battery work is progressing too, supported by upgraded infrastructure installed earlier this year.
Analysts tracking Electrovaya forecast revenue to increase from US$63.8 million in fiscal 2025 to US$321 million in fiscal 2030. In this period, free cash flow is projected to swing from a $2 million outflow to a $101 million inflow.
If the growth stock is priced at 10 times forward FCF, it could double within the next 40 months. If the FCF multiple expands to 30 times, which is still reasonable, it could deliver a 500% return. Basically, you can potentially turn a $200 investment in ELVA stock into more than $1,000 within the next four years.
