NEW DELHI — U.S.-based brokerage Citi on Monday lowered its target price for Ola Electric to Rs 22 from Rs 27 and reduced its revenue estimates for fiscal years 2026 through 2028 by 5 percent to 14 percent, citing ongoing market share losses and intensifying competition in India’s electric vehicle sector.
Citi maintained a sell rating on the Bengaluru-based electric vehicle manufacturer, saying that a meaningful turnaround in EBITDA would likely require significantly higher sales volumes, which could help support the company’s existing gross margins.
The brokerage also noted that potential revenue growth from battery energy storage systems and improvements in product or service quality could eventually provide support for the company’s outlook, though it cautioned that these factors remain uncertain.
Shares of Ola Electric were trading at around Rs 24.30 on Monday. The stock came under heavy selling pressure earlier this month, dropping as much as 16 percent in a single trading session as investors expressed concern about the company’s growth prospects.
The Bhavish Aggarwal-led company’s shares recently hit a record low of Rs 21.21. Ola Electric made its stock market debut on Aug. 9, 2024, listing at Rs 76 per share, the same price as its initial public offering.
Although the shares initially rose after the listing, the stock began declining from October 2024 amid concerns over slowing electric vehicle sales, shrinking market share, regulatory scrutiny and weaker-than-expected deliveries.
The slowdown in sales has also come as the company reportedly plans to scale back its physical retail presence. Ola Electric is expected to reduce its store network to about 550 outlets by the end of March.
At its peak, the company operated roughly 4,000 offline retail outlets across India. By December 2025, Ola Electric said it had reduced the number of operational stores to about 700. (Source: IANS)
