Ola Electric shares plunge 5% to fresh all-time low: Citi slashes target price by 51%, downgrades to 'Sell'

The shares of Ola Electric Mobility plunged another 5 percent to hit a fresh lifetime low on February 17. This comes as more brokerages downgraded the stock, dampening investor sentiment further. The shares of the EV scooter-maker dropped to Rs 27.36 apiece on Tuesday, a day after the stock hit the previous lifetime low of Rs 28.70 apiece. This came after the company announced its earnings for the October-December quarter of FY26. It is currently down more than 64 percent from its IPO price of Rs 76 apiece, and around 83 percent lower than its all-time high of Rs 157.40 apiece which it had hit in August 2024 after debut. Ola Electric Q3 Results: Ola Electric on February 13 reported consolidated revenue from operations at Rs 470 crore for Q3 FY26. This marks a 55 percent year-on-year (YoY) fall from the Rs 1,045 crore revenue from operations reported in the same period of the previous financial year. Net loss however narrowed to Rs 487 crore during the quarter under review, as against a net loss of Rs 564 crore in the year-ago period. Deliveries declined 61 percent YoY to 32,680 units in Q3 FY26, compared with 84,029 units a year earlier. Adjusted operating EBITDA loss narrowed 34.6 percent to Rs 323 crore. Citi on Ola Electric: Citi downgraded the shares of the company to ‘Sell’ from ‘Buy’, and slashed its target price by 51 percent to Rs 27 apiece from Rs 55 apiece earlier. The latest target price implies a downside potential of more than 6 percent from the stock’s previous closing price of Rs 28.83 apiece. It cited slower-than-expected electric vehicle penetration, continued market-share losses, and mounting balance-sheet concerns amid persistent cash burn as reasons for the downgrade. Citi cut its estimates and target EV/sales multiple to 3.5x. Emkay Global on Ola Electric: Emkay Global downgraded the shares of Ola Electric to ‘Sell’ from ‘Buy’, and cut its target price to Rs 20 apiece from Rs 50 apiece. The latest target price implies a downside potential of around 31 percent from the stock’s previous closing price. According to the brokerage note cited by CNBC-TV18, Emkay’s analysts highlighted that Ola logged a weak third quarter, although its underlying electric two-wheeler theme remains strong. It added that the industry is witnessing a healthy growth, with a revival in penetration following a brief dip after the GST rat cuts. It noted that Ola saw consistent volume fall to 32,000 units in Q3 FY26, along with market share loss. Emkay, as quoted by the report, said that this could be a difficult, long-drawn process for Ola, especially amid greater focus from incumbents and scale-up at Ather. Kotak Securities on Ola Electric: Kotak Securities also kept a ‘Sell’ call on the stock, with a target price of Rs 20 per share. The domestic brokerage said that Ola Electric’s results were below expectations, and volume growth saw no pick up. It added that the company is already showing visible strain, and may see a full blown crisis ahead. It expects Ola to see big net losses and net worth erosion in FY26-FY28. Follow all LIVE updates from the stock markets here. Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.