Ather Energy shares rallied as much as 3% to their day’s high of Rs 1,625 on the BSE on Thursday after international brokerage Nomura raised the target price, believing that EV two-wheeler adoption is accelerating faster than expected.
Nomura has a ‘Buy’ call on the shares of Ather Energy and raised its target price to Rs 1,926 apiece from Rs 1,714 apiece, with the latest target price implying around 22% upside potential from the stock’s previous closing price of Rs 1,580 apiece.
Also read | Ather & Ola Electric: A tale of two contrasting rides
Two-wheeler EV penetration progressing faster than expected
The two-wheeler industry’s EV penetration is progressing faster than Nomura’s expectations, with the international brokerage believing that this growth is still under-represented by nearly 20% due to lack of supply. Improving product offerings, higher consumer acceptance and supportive policy, and favourable total cost of ownership (TCOs) are key enablers for the inflection in EV penetration, it added.
The ongoing shift towards scooterisation should further aid in EV adoption, Nomura said. “We, therefore, raise our EV two-wheeler penetration forecast to 22% by FY30 vs 19.6% earlier. This implies a 45% EV penetration for scooters,” it added.
Ather Energy’s launch of Konarc
With the launch of Konarc, Ather has further reinforced its tech leadership, according to Nomura. Konarc introduced a suite of features including Advanced Electronic Braking System (AeBS), MagicKey and SmartWake, AutoPop and AirWalk for an easier everyday experience, with these features primarily being offered on Z variants of Konarc.
The international brokerage believes the EL platform will double the TAM for Ather, with its scalable architecture, and should enable Ather to offer products at more competitive price points while retaining its tech-led differentiation. The success of the new motorcycle platform in the future can provide further upside to its estimates.Also read | Ather Energy’s 130% stock surge leaves Tesla and BYD behind in 2026
Nomura raises earnings, volumes estimates for Ather Energy
Nomura raised its FY28 and FY29 volume estimates for Ather to 7.94 lakh and 10.16 lakh, respectively. It now expects the company to post a revenue growth of 54%, 100% and 31% over FY27, FY28 and FY29, respectively.
“We expect EBITDA margins to improve from -6.2% in FY27 to +7.6% by FY29, and the company should achieve PAT breakeven in FY28,” Nomura said, noting that FY29 could potentially see a strong improvement in margins as the production-linked incentives (PLI) for competitors end in March 2028. It maintained Ather as its top pick in the two-wheeler space.
Ather Energy share price
Ather Energy shares have jumped 114% in 2026 so far, delivering around 192% returns over one year. The stock has, however, fallen 4% in a week but gained 8% in a month.
The company has a market capitalisation of more than Rs 31,066 crore.
Also read | Mutual funds increase stake in Ather Energy for 5th straight quarter. Bigger rally brewing?
Disclosure: “This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.”
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