Ather Energy shares jump 18% to fresh 52-week high after Q1 loss narrows
EV demand remains strong, supported by government policy and the positive total cost of ownership for electric vehicles, the company said
Ather Energy's shares surged 18% on Tuesday, reaching a new 52-week high after the electric vehicle manufacturer reported a narrowed Q1 loss. The stock traded at ₹1,452.10 on the NSE after peaking at ₹1,500. This followed a much-improved financial performance, as the company's consolidated net loss narrowed to ₹51.1 crore for the quarter.
EV demand, according to management, remains robust, driven by government policies and the cost-effectiveness of electric vehicles. Delhi's supportive EV policy is expected to continue, while other states also show increased backing for EV adoption. The company is receiving a high volume of enquiries and bookings, with 236,000 inquiries and 50,000 bookings per month.
Global brokerage CLSA rated Ather Energy as 'outperform' with a target price of ₹1,600, noting that volumes in Q1FY27 jumped 81% year-over-year, surpassing the electric two-wheeler industry’s 68% growth. EBITDA margin improved by 319 basis points quarter-over-quarter to negative 2.7%, despite commodity challenges. The upcoming Factory 3.0, with an annual capacity of 500,000 units, is anticipated to remove the capacity constraint by Q3FY27.
HSBC maintained a 'buy' rating with a target price of ₹1,450, attributing margin performance to a significant reduction in other expenses. Nomura also retained its 'buy' rating, with a target price of ₹1,714, citing the upcoming EL platform launch and new plant as key catalysts.
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