Citi trims Ola Electric’s target price to Rs 22

US based brokerage Citi on Monday cut the target price of Ola Electric to Rs 22 from Rs 27 and trimmed revenue estimates for fiscal 2026–2028 by 5–14 per cent. The brokerage reduced the revenue estimate citing continued loss of market share and continued caution due to rising competition.

Citi maintained its sell rating for the Bengaluru‑based electric vehicle maker, adding that a positive turnaround in EBITDA would require higher volumes, which would in turn support the already healthy gross margin.

The brokerage highlighted a potential increase in revenue from the Battery Energy Storage and improvement in product or service quality which could act as headwinds for the company raising the target price.

Shares of Ola Electric are currently trading at Rs 24.30 per piece. It had come under heavy selling pressure earlier this month, falling as much as 16 per cent in a single session, as investors remained concerned about the company’s growth outlook.

The stock of the Bhavish Aggarwal-led company hit a record low of Rs 21.21 per share. Ola Electric had made its stock market debut on August 9, 2024, listing at Rs 76, which was the same as its IPO price.

Although the shares initially rallied after listing, they started falling from October 2024 amid concerns over slowing electric vehicle sales, loss of market share, regulatory scrutiny and weaker-than-expected deliveries.