Over the last few days, the battery discharge has been fast and unpredictable. I have attached the Battery screenshot. I shall explain the sequence of events to describe the screenshot.
The battery goes from 40-50 to 0 in one go! (the first downward steep drop). Phone had already switched off. I connected it to a charging point and restarted the phone.
While the phone was being charged (the slow upward red slope), I did some research on this. Since, Google Play Services was consuming most of the battery, the following solution seemed to be good to follow.
(Disable Hangouts, sign out of Google+, turn ON Location Reporting, reboot, then reenable Hangouts and sign back into G+),
I tried this. Once I rebooted, the battery power was 56% !! (The steep upward climb)
I used it for some time. And kept it on charge to charge it completely. But after some time, the battery charge dropped to 19% (the second drop in the screenshot). I rebooted the phone again. And this resulted in the next battery charge spike upto 45%!!
I tried searching for Hangouts app or Google+ app on the phone. But they no longer exist in the app drawer.
Is this a battery issue? Or some software issue? Should I try a factory reset?
Edit1: Added a larger image of the battery stats.
An avid Nexus 4 fan !!