Ather Energy shares jump 5%, extend rally to 20% in two days after Q2 results. Can the run continue?
Ather Energy shares extended their rally on Tuesday after the electric two-wheeler maker reported its first quarterly profit of Rs 1.26 crore in Q2 FY27. Revenue surged 63% year-on-year to Rs 1,464 crore, while EBITDA turned positive. Nomura raised its target price to Rs 2,070 and retained its Buy rating.
Shares of electric two-wheeler manufacturer Ather Energy surged by up to 8.1% on the BSE after HSBC and Nomura boosted their price targets, following the company's Q2 FY27 results. Trading at ₹1,680.60 at 11:28 IST, Ather's stock was up 6.8% by that time, valuing the company at ₹66,672.4 Cr ($6.9 Bn). This followed a 13.7% jump the previous day, when Ather shares closed 13.7% higher at ₹1,574 after the firm announced its Q2 FY27 results.
HSBC and Nomura maintained their 'Buy' ratings, citing better-than-expected margins and stronger growth prospects, especially after the launch of Ather's Konarc scooter range. HSBC raised its price target from ₹1,600 to ₹1,800, while Nomura increased its target from ₹1,926 to ₹2,070. The brokerages highlighted Ather's strong performance, with EBITDA breaking even ahead of expectations, and an EBITDA margin of 0.8%, surpassing expectations and the consensus.
Strong bookings and improved growth visibility following the Konarc launch were additional positives. Ather reported a net profit of ₹1.3 Cr in Q2 FY27, after a loss of ₹154.1 Cr the previous year, driven by higher revenue growth, improving margins, and other income. Operating revenue climbed 62.9% YoY and 20.3% QoQ to ₹1,464.2 Cr, with EBITDA at ₹74.2 Cr and a margin of 4.9%.
CEO Tarun Mehta emphasized the focus on capacity expansion and sales growth over near-term net profitability, noting that some margin gains resulted from temporary measures like product mix changes and reduced incentives. Ather plans to invest ₹122 Cr to expand manufacturing capacity at its Hosur plant and Factory 3.0, increasing annual production to 2.25 Lakh units.
The company also raised ₹1,300 Cr and ₹200 Cr in recent placements and allotments to finance the expansion.
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