Ather Energy Surges 18% To Hit All-Time High As Brokerages Turn Bullish After Strong Q1

Shares of Ather Energy climbed as much as 18% to hit an all-time high at ₹1,500 on the BSE today after the electric two-wheeler maker’s strong Q1 FY27 earnings prompted a fresh round of bullish brokerage calls. 

The stock later pared some gains amid profit booking and was trading 13.8% higher at ₹1,449.80 apiece at 10:00 IST. Its market capitalisation stood at ₹57,189.5 Cr (about $6 Bn) at the time. 

Brokerages cited strong demand, improving profitability, manufacturing expansion and upcoming product launches as key factors underpinning Ather’s long-term growth outlook. 

CLSA maintained its ‘Outperform’ rating with a target price of ₹1,600, saying strong volume growth, demand exceeding production capacity and margin expansion from Factory 3.0, calibrated price hikes, and the upcoming EL platform should support earnings. 

HSBC retained its ‘Buy’ rating while raising its target price to ₹1,450, citing better-than-expected operating margins driven by lower operating expenses. It expects Ather to continue gaining market share as additional manufacturing capacity comes online. 

Nomura also reiterated its ‘Buy’ rating with a target price of ₹1,714, noting that Ather’s EBITDA margin exceeded its estimates. It expects the launch of the EL platform and the commissioning of the new manufacturing facility to drive the company’s next phase of growth. 

Ather Turns EBITDA Positive In Q1 

Ather narrowed its consolidated net loss by 71% to ₹51.1 Cr in Q1 FY27 from ₹178.2 Cr a year earlier, while operating revenue surged 89% YoY to ₹1,216.9 Cr. 

The company turned EBITDA positive during the quarter, reporting an EBITDA of ₹9 Cr against a loss of ₹106 Cr in the year-ago period. Its EBITDA margin improved to 1% from -16%, aided by strong vehicle sales, calibrated price hikes, and a higher contribution from high-margin businesses such as software subscriptions, charging services, and after-sales offerings. 

Ather delivered 83,173 electric scooters during the quarter, up 81% YoY, with management saying demand continues to outpace production capacity. The company added that the first phase of its Factory 3.0 at AURIC remains on track to begin production in Q3 FY27, adding annual capacity of 5 Lakh units. 

On the earnings call, cofounder and CEO Tarun Mehta said Ather could have retailed an additional 13,000-15,000 scooters every month if sufficient production capacity had been available, adding that its Hosur plant is operating at nearly full utilisation. He also said the company could accelerate the second phase of its AURIC facility if demand remains strong. 

Mehta added that commodity cost pressures are likely to persist in the near term, although recent price hikes should offset most of the impact on margins. He also reiterated that Ather will unveil its first production scooter built on the next-generation EL platform on August 29 and remains optimistic about continued policy support for the EV sector, including a possible extension of the PM E-DRIVE scheme. 

Notably, Ather recently raised more than ₹2,500 Cr through a QIP and a preferential allotment to expand manufacturing capacity, accelerate product development, strengthen R&D, and scale its retail and charging network. 

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