Highlights
Shares of Ather Energy, a leading maker of electric two-wheelers, experienced a remarkable increase of nearly 18% on Tuesday, hitting a record high of Rs 1,500 per share. This surge occurred as brokerages maintained a positive outlook following the impressive Q1 FY27 results. Previously, the stock closed at Rs 1,272.7.
Impressive Financial Performance Boosts Investor Confidence
The significant rally coincided with Ather’s announcement of substantial growth in revenue, profit margins, and overall profitability, which has strengthened investor confidence in the company’s upward trajectory. The rising demand for Ather’s electric scooters, improved efficiency, recent funding, and expectations of new product launches have further enhanced market sentiment.
Q1 FY27 Financial Highlights
For the quarter ending June 2026, Ather reported a remarkable 89% increase in revenue from operations, amounting to Rs 1,217 crore. Additionally, the total consolidated income rose by 87.2% to Rs 1,260 crore. The company also exhibited a significant improvement in profitability, with its net loss decreasing to Rs 51 crore from Rs 178 crore in the same quarter last year.
Consolidated EBITDA turned positive at Rs 9 crore, contrasting with a loss of Rs 106 crore in Q1 FY26, while the EBITDA margin improved by 1,650 basis points to 0.8%. During this quarter, Ather delivered 83,173 electric scooters, while customer inquiries soared by 95% to 7.07 lakh, and pre-orders surged by 158% to 1.5 lakh, reflecting a demand that outstrips production capabilities. Furthermore, Ather confirmed that its AURIC plant is on track to initiate production in Q3 FY27, with the inaugural scooter from the new EL platform scheduled for debut on August 29.
Brokerage Ratings Affirm Positive Outlook
Brokerages are expressing strong optimism about Ather. CLSA maintained its ‘Outperform’ rating, with a target price of Rs 1,600, citing robust volume growth, healthy bookings, planned capacity expansion, and the anticipated launch of the EL platform. It highlighted that demand remains ahead of production capacities.
HSBC also upheld its ‘Buy’ rating, increasing its target price to Rs 1,450. Analysts pointed to better-than-expected margins stemming from reduced operating costs, along with anticipated market share growth as new capacity comes online. Nomura has likewise retained its ‘Buy’ rating, setting a high target price of Rs 1,714, describing Ather as its top choice in the electric two-wheeler market, supported by effective execution and strong brand reputation.
Factors Contributing to Growth
Analysts noted that Ather’s enhancing unit economics, additional revenue from software and services, upcoming capacity upgrades, and an innovative product lineup position the company favorably for continued growth. This has prompted a general re-rating of the stock.
As of 11:37 PM today, Ather’s shares were trading at Rs 1,463.9, giving the company a market valuation of Rs 57,349 crore, approximately $6 billion.