Citi Lowers Ola Electric's Target Price to Rs 22 Amid Market Share Concerns
Synopsis
Citi has lowered Ola Electric's target price to Rs 22, reflecting a cautious outlook amid declining market share and stiff competition. This development raises concerns about the company's growth trajectory as stock prices fluctuate significantly.
Key Takeaways
Citi's target price for Ola Electric is now Rs 22.
Revenue estimates for 2026–2028 have been cut by 5–14%.
Ola Electric is facing increasing competition and market share losses.
The stock has seen significant fluctuations, hitting a low of Rs 21.21.
The company plans to reduce its number of retail outlets significantly.
New Delhi, March 16 (NationPress) - US-based brokerage Citi has revised its target price for Ola Electric to Rs 22, down from Rs 27, while also adjusting its revenue projections for the fiscal years 2026–2028 by 5–14 percent. The firm cited ongoing losses in market share and increasing competition as key factors behind this decision.
Citi has reaffirmed its sell rating for the Bengaluru-based electric vehicle manufacturer. They indicated that a positive shift in EBITDA would necessitate higher sales volumes, which could bolster the already strong gross margin.
The brokerage pointed out that potential revenue growth from Battery Energy Storage and enhancements in product or service quality might serve as obstacles to raising the target price.
Currently, shares of Ola Electric are trading at Rs 24.30. Earlier this month, the stock faced significant selling pressure, plunging by as much as 16 percent in a single day, as investor sentiment soured regarding the company's growth prospects.
The stock, led by Bhavish Aggarwal, reached a record low of Rs 21.21 per share. Ola Electric made its market debut on August 9, 2024, listing at Rs 76, equal to its IPO price.
While the shares initially surged post-listing, they began to decline from October 2024 due to concerns over sluggish electric vehicle sales, diminishing market share, regulatory scrutiny, and disappointing delivery figures.
Sales have been affected by reports indicating the company's intention to reduce its physical retail presence to around 550 outlets by the end of March.
At its height, Ola Electric operated roughly 4,000 retail locations across India. By December 2025, the company indicated that this number had dwindled to about 700.
aar/pk
Point of View
It is crucial to assess the broader implications for the electric vehicle market in India. While challenges abound, the potential for growth remains if strategic adjustments are made. This situation warrants close monitoring as the landscape continues to evolve.
NationPress
10 Aug 2026
Frequently Asked Questions
Why did Citi lower Ola Electric's target price?
Citi lowered the target price due to ongoing losses in market share and increased competition, alongside reduced revenue estimates for the upcoming fiscal years.
What is the current share price of Ola Electric?
As of the latest update, Ola Electric shares are trading at Rs 24.30.
How has Ola Electric's stock performed since its IPO?
Ola Electric's stock debuted at Rs 76 but has since faced significant volatility, hitting a record low of Rs 21.21.
What are the future plans for Ola Electric's retail outlets?
Ola Electric plans to reduce its physical retail presence to around 550 outlets by the end of March.
What factors are affecting Ola Electric's sales?
Sales are being impacted by concerns over slowing electric vehicle demand and regulatory scrutiny.
