New Delhi, Oct. 7 -- The case for building huge factories-or gigafactories-to manufacture lithium-ion batteries for electric vehicles (EVs) in India has a curious twist. The country may be adding capacity way beyond what its EV market-spanning cars, two-wheelers and three-wheelers-will need in the near future, raising questions over whether battery makers can turn a profit.

Both industry players and experts say the way out is for battery manufacturers to look beyond EVs for sales-in industries such as drones, telecom towers, power tools, data centres, and stationary storage for C&I (commercial and industrial), among others.

According to data from company presentations and announcements, Ola Electric, Amara Raja, Reliance Industries, Tat...