Citi on Monday has cut the target price of Ola Electric due to the continued loss of market share price. The brokerage has also cut its revenue estimates.
The brokerage cut the targe price to Rs 22 from Rs 27 and it also cut the fiscal 2026-2028E revenue estimates by 5-14%. Citi explained that it is more cautious of the pricing assumptions due to the rising competition.
Citi has also maintained its sell rating for the auto company. According to the brokerage, positive turnaround in Ebitda will come when volumes improve to support the already health gross margin. It further added that potential increase in revenue from the Battery Energy Storage and improvement in product or service quality perception could be key upside to target price.
Ola's electric two wheeler retail market share fell to single digits in the third quarter of this fiscal, according to Vahan numbers. The EV maker had a market share of 48.6% in the first quarter of fiscal 2025, but it fell to 25.5% in the third quarter of the previous fiscal. The number further fell to 19.6% in the first quarter of this financial year. But in the third quarter of this fiscal it was at 9.3%.
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The trend seemed to continue as it fell to 6.1% in January 2026. In market share Ola Electric fell to the 5th position with a hold of 6%.
The rate cut comes merely a month after reports that Ola Electric cut its store to 550 as sale slump widened. This was amid a share decline in market share and mounting operational challengers. The Bengaluru-based EV maker in its latest quarterly update said it had already pared its store network to 700 outlets. This was a year after it announced the expansion of its retail network to 4,000 stores nationwide.
However, the company had described the cut as a 'structural reset'.
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