Ather Energy Surges 18% To Hit All-Time High As Brokerages Turn Bullish After Strong Q1

Shares of Ather Energy surged 18% to reach a record high of ₹1,500 on the BSE following strong first-quarter earnings, prompting bullish remarks from multiple brokerages. The stock subsequently cooled to a 13.8% gain at ₹1,449.80, with a market capitalisation of ₹57,189.5 Cr. Factors driving the optimism include robust demand, improving profitability, manufacturing expansion, and forthcoming product launches.

Analysts predict long-term growth for the electric two-wheeler maker, with firms like CLSA maintaining an 'Outperform' rating and HSBC raising its target price to ₹1,450. Ather reported a significant turnaround, narrowing its consolidated net loss by 71% to ₹51.1 Cr in Q1 FY27 and turning EBITDA positive at ₹9 Cr, a stark contrast to the ₹106 Cr loss in the previous year.

Operating revenue grew 89% YoY to ₹1,216.9 Cr, with EBITDA margin improving to 1% from a loss of -16%. Demand for Ather's electric scooters soared 81% year-over-year, with the company delivering 83,173 units during the quarter. The first phase of Factory 3.0 at AURIC is set to commence production in Q3 FY27, adding an annual capacity of 5 lakh units.

CEO Tarun Mehta expressed that Ather could have sold an additional 13,000-15,000 scooters per month if sufficient capacity existed, and hinted at accelerating the second phase of AURIC if demand stays robust. Commodity cost pressures are expected to persist in the short term, but recent price hikes should help offset the margin impact.

Ather has recently raised over ₹2,500 Cr through a Qualified Institutional Placement and preferential allotment for manufacturing capacity expansion, product development, R&D, and retail and charging network scaling.