Ather Energy jumps 18% to new peak on lower Q1 loss; Nomura sees 35% upside

Ather Energy share price: Analysts at Nomura said that Ather Energy remains their top pick in the EV two-wheeler space.

Ather Energy share price: Shares of multibagger electric two-wheeler maker Ather Energy rallied a whopping 18 per cent to a fresh high on Tuesday, August 4, as investors cheered the company's latest financial performance for the first quarter of the ongoing fiscal (FY27), wherein it posted narrower losses. 

 

Following the earnings announcement, Ather Energy's share price rose to ₹1,500 on the National Stock Exchange (NSE), gaining 17.85 per cent over its last close. Trading volumes on the counter spiked as 9.25 million shares changed hands on the exchanges as of 9.32 AM.

 

Ather Energy shares, which listed in May last year, have been on a roll since. They gained 152 per cent in 2025 and remain 97 per cent higher year to date, signalling solid returns for investors.

 

 

Ather Energy Q1 Results

For Q1 FY27, its consolidated net loss narrowed significantly to ₹51 crore from ₹178 crore a year ago, reflecting the structural improvements in the business as volumes continued to scale.

 

The revenue from operations surged 89 per cent year-on-year (Y-o-Y) to ₹1,217 crore during the quarter under review from ₹645 crore in the corresponding period last year, driven by strong volume growth, calibrated pricing actions, and a growing contribution from non-vehicle revenue. READ MORE

 

The company, in a release, said that the quarter also saw consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) turn positive at ₹9 crore, compared with an Ebitda loss of ₹106 crore in Q1 FY26.

 

The quarter was marked by commodity inflation, which drove up raw material costs and resulted in margin pressure. Ebitda margin was at -2.7 per cent, beating the consensus of -7 per cent.

 

The management said that EV demand is very strong with government policy support and positive TCO for EVs. Ather continued to see strong momentum across its customer funnel, with customer enquiries rising 95 per cent Y-o-Y to 707,000, and pre-orders growing 158 per cent Y-o-Y to 150,000.

 

Tarun Mehta, Co-founder & CEO, Ather Energy, said, "We continued to see strong demand across our

portfolio, as structural tailwinds from both policy support and shifting customer sentiment translated into a massive upsurge for our products, with demand far outstripping supply. This gives us confidence that the market continues to expand.”

 

Nomura sees 34% upside in Ather Energy

Analysts at Nomura said that Ather Energy remains their top pick in the EV two-wheeler space. 

 

They said that they continue to believe that EV penetration in India is at an inflection point, and the current demand is much higher than supply. Against that backdrop, they expect the upcoming EL platform to expand TAM by ~2x and also lower costs meaningfully. "Margin risks are behind us now. Improving scale and operating leverage are likely to drive EBITDA breakeven in FY28F. A potential entry into motorcycles offers further long-term optionality," they said while commenting on Ather.

 

Nomura estimates FY27F/28F/29F EBITDA margin estimates at -5.7 per cent/+3.8 per cent/+7.2 per cent (vs -6.4 per cent/+1.3 per cent/+5.1 per cent earlier).

 

Further, it also raised the target price for Ather Energy to ₹1,714, based on 5.5x EV/sales, implying ~35 per cent upside from last close. It has a 'Buy' call on the stock.  

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