Ather Energy Share Price Target Soars to Rs 1,714: Insights from CLSA, Nomura, and HSBC.
Ather Energy has demonstrated significant improvement in its financial performance for the June quarter, narrowing its net loss to Rs 51 crore from Rs 178 crore and achieving a positive EBITDA of Rs 9 crore, a leap from an EBITDA loss of Rs 106 crore in the same period last year. Its revenue from operations surged by 88.8% year-on-year to Rs 1,217 crore, with consolidated EBITDA margins improving sequentially to -2.7%, up by 319 basis points despite facing commodity cost pressures. This positive momentum led to a substantial share price rally, with shares peaking at Rs 1,500, representing an 18% increase on the BSE.
Several foreign brokerages, including Nomura, CLSA, HSBC, and Emkay, have expressed strong bullish sentiments towards Ather Energy. Nomura has raised its target price to Rs 1,714, foreseeing a 34.6% upside, citing that the electric vehicle (EV) market in India is at a pivotal growth point. The firm projects that Ather’s upcoming EL platform will almost double its addressable market while enhancing cost efficiencies. Furthermore, Nomura anticipates that easing margin risks and improved operational leverage will facilitate Ather reaching EBITDA breakeven by FY28, bolstered by favorable policy measures.
CLSA maintained its Outperform rating and set a target price of Rs 1,600, indicating a potential 26% upside. The firm noted that Ather’s sales volume for Q1 FY27 has outperformed the overall electric two-wheeler industry, signaling strong demand constraining production capabilities. With the forthcoming Factory 3.0 expected to alleviate capacity bottlenecks, CLSA expects sustained volume growth, supporting margins with recent price hikes. Meanwhile, HSBC has also raised its target price to Rs 1,450 and emphasized Ather’s ability to achieve robust volume growth driven by its strong brand and operational efficiency.
Emkay’s analysis points to a structural, multi-year demand upcycle in the electric two-wheeler sector, driven by electrification initiatives and changing consumer preferences. The brokerage reported that Ather is currently operating at nearly full capacity of 35,000 units per month, with retail sales nearly doubling year-on-year. Additionally, a significant reduction in dealer inventory further indicates robust consumer demand, suggesting Ather is well-positioned to capture market share as it ramps up production capabilities in response to heightened demand dynamics. Overall, the indicators suggest a promising outlook for Ather Energy, substantiated by favorable market conditions and strategic developments ahead.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)