Ather Energy shares surged up to 16% to a record high after Q1 loss narrowed to ₹51 crore, while revenue jumped 89% to ₹1,217 crore.
Brokerages cited strong demand, improving margins and upcoming capacity expansion as key growth drivers, with Nomura, CLSA and HSBC reiterating bullish ratings.
Nomura sees the highest upside with a target price of ₹1,714, followed by CLSA at ₹1,600 and HSBC at ₹1,450.
Ather Energy Shares Jump 16% To Record High As Q1 Loss Narrows; Brokerages Stay Bullish
Strong volume growth, improving profitability and expansion plans prompted brokerages to reiterate bullish views, with target prices of up to ₹1,714
Ather Energy Shares Jump 16% To Record High As Q1 Loss Narrows; Brokerages Stay Bullish
Summary
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Shares of Ather Energy surged as much as 16% to hit a record high on Tuesday after the electric two-wheeler maker reported a sharp improvement in its June quarter (Q1FY27) earnings, driven by strong revenue growth and improving profitability.
The company reported a net loss of ₹51 crore for the quarter, sharply lower than the ₹178 crore loss recorded a year earlier. Revenue from operations jumped 89% year-on-year to ₹1,217 crore from ₹645 crore.
EBITDA loss narrowed to ₹33 crore from ₹134 crore, while adjusted gross margin rose 82.3% YoY to ₹282 crore. The company also turned adjusted EBITDA positive during the quarter.
Demand Outpaces Capacity
Brokerages said Ather's operating performance exceeded expectations, supported by strong demand and improving margins.
CLSA retained its Outperform rating with a target price of ₹1,600, noting that Ather's volumes grew 81% YoY, ahead of the industry's 68% growth. It said bookings are running at nearly 50,000 units a month against current production capacity of around 35,000 units, indicating the company is constrained by manufacturing capacity rather than demand.
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The brokerage expects the commissioning of Factory 3.0, with annual capacity of 5 lakh units from Q3FY27, along with recent price hikes, cost-saving measures and the launch of the EL platform during the festive season, to further support margins and volume growth.
Margin Improvement Drives Optimism
HSBC reiterated its Buy rating and raised its target price to ₹1,450, saying margins came in better than expected due to a sharp reduction in other expenses. It expects Ather to gain market share as new production capacity comes online and believes the company's execution capabilities and strong brand justify its premium valuation.
Nomura maintained its Buy rating with the Street-high target price of ₹1,714, calling Ather its preferred electric two-wheeler play. The brokerage highlighted the company's Q1 EBITDA margin of -2.7%, substantially better than its estimate of -5.6%, and expects the upcoming EL platform launch and new manufacturing facility to act as the next growth catalysts.
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Management said demand for electric vehicles remains healthy, supported by favourable government policies and attractive ownership economics. It added that the company is currently receiving around 2.36 lakh enquiries and 50,000 bookings every month.
Brokerages See Up To 39% Upside
Brokerages remained constructive on Ather Energy following the strong June-quarter performance, citing improving profitability, healthy demand and capacity expansion as key growth drivers.
Nomura maintained its Buy rating with the Street-high target price of ₹1,714, while CLSA retained its Outperform rating with a target price of ₹1,600. HSBC also reiterated its Buy rating and raised its target price to ₹1,450, reflecting confidence that improving margins, new product launches and additional manufacturing capacity will support further earnings growth and market share gains.