Ather’s revenue from operations jumped 88.8% year on year to Rs 1,217 crore. Consolidated EBITDA turned positive at Rs 9 crore during the quarter, against an ebitda loss of Rs 106 crore a year earlier. Margins improved 319 basis points sequentially to -2.7% despite commodity headwinds.
Why are Nomura, CLSA, HSBC, and Emkay bullish?
Nomura maintained its Buy rating on Ather Energy and raised its target price to Rs 1,714 from Rs 1,273, implying a 34.6% upside. The brokerage retained Ather as its top pick in the electric two-wheeler segment, saying EV penetration in India has reached an inflection point, with demand continuing to outpace supply. It expects the upcoming EL platform to nearly double the company’s total addressable market while significantly lowering costs.
The Japanese brokerage believes margin risks have largely eased, while improving scale and operating leverage should help Ather achieve EBITDA breakeven by FY28. The brokerage also sees the company’s potential entry into the motorcycle segment as a long-term growth opportunity. It added that policy measures such as ICE vehicle restrictions or additional EV incentives in more states, along with Ather’s inclusion in the PLI scheme, could provide further upside.
CLSA maintained its Outperform rating on Ather Energy with a target price of Rs 1,600 (26% upside). The brokerage said Ather’s volumes rose 81% year on year in the first quarter of FY27, outpacing the electric two-wheeler industry’s 68% growth. CLSA noted that bookings are running at around 50,000 units per month, well above the current production capacity of 35,000 units, indicating that the company is constrained by capacity rather than demand.
It expects the upcoming Factory 3.0, with an annual capacity of 5 lakh units, to remove this bottleneck from the third quarter of FY27. The brokerage added that recent price hikes and cost reduction measures should support margins, while the launch of the EL platform during the festive season is likely to sustain volume momentum.HSBC maintained its Buy rating on Ather Energy and raised its target price to Rs 1,450 (14% upside). The brokerage said the company’s margin performance was driven by a sharper-than-expected decline in other expenses. It noted that the management remains confident of strong volume growth and a recovery in market share once additional production capacity comes on stream. HSBC added that Ather’s strong brand in the electric vehicle segment and consistent execution justify a premium valuation.
Read more: Ather Energy shares zoom 18% after Q1 results. Why is it Nomura’s top 2-wheeler pick?
Emkay maintained its Buy rating on Ather Energy and raised its target price by 19% to Rs 1,600, implying a 25% upside. The brokerage said the first quarter points to a structural, multi-year demand upcycle, with the electric two-wheeler industry reaching an inflection point driven by strong tailwinds.
It cited transport electrification, supported by initiatives such as the PM E Drive Scheme and the Delhi EV Policy, along with a genuine shift in consumer preference towards electric vehicles amid concerns over fuel prices and availability.
Despite supply chain challenges, Emkay noted that Ather ramped up production to its full capacity of 35,000 units per month, operating at nearly 100% utilisation, while retail sales nearly doubled year on year. Dealer inventory also fell sharply to three days from 14 days at the end of the fourth quarter of FY26, reflecting robust demand.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
