Ather Energy Shares Jump 8% After HSBC, Nomura Raise Price Targets

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.