Ather Energy Shares Surge 16% As Investors Cheer Results 

Mumbai, August 4: Ather Energy shares jumped as much as 16% on Tuesday, hitting a 52-week high after the electric two-wheeler maker reported a sharp improvement in its June-quarter performance. Strong revenue growth, a narrower loss and better-than-expected operating margins prompted brokerages to turn more bullish on the stock. 

Stock Hits Fresh 52-Week High 

Ather Energy shares hit a new 52-week high. 

The sharp rally came after Ather reported a significant improvement in its financial performance for the first quarter of fiscal 2027, with the company benefiting from stronger electric two-wheeler demand and improving operating metrics. 

The electric scooter maker’s net loss narrowed to ₹51 crore in Q1FY27 from ₹178 crore in the corresponding quarter a year earlier. Revenue from operations, meanwhile, surged 89% year-on-year to ₹1,217 crore from ₹645 crore. 

Operating Loss Narrows Sharply 

Ather also reported a notable improvement at the operating level. Its operating loss narrowed to ₹33 crore in the June quarter from ₹134 crore in the year-ago period. 

Stock jumped after operating margins came in ahead of estimates. Source: NSE 

The company’s revenue mix also showed gradual diversification. Income from software subscriptions, charging services, accessories, spares and other services rose to 14% of operating revenue from 13% a year ago. 

The improvement came against a backdrop of strong demand for electric two-wheelers in India. 

Brokers See Strong Volume Growth 

Brokers maintained ‘Buy’ rating on Ather Energy and raised target prices. The brokerages attributed the company’s better-than-expected margin performance to lower other expenses and expect volume growth to remain strong as new manufacturing capacity comes on stream. 

They also expect Ather to regain market share as production capacity expands. The brokerages said the company’s strong electric vehicle brand and execution capabilities justify its premium valuation. 

Some brokers were even more bullish, noting that Ather’s Q1 EBITDA margin of negative 2.7% was significantly better than estimates. Revenue of ₹1,210 crore was broadly in line with estimates. 

The brokers said demand for electric vehicles remains very strong and argued that India’s EV penetration is approaching an inflection point. The brokerages expect Ather’s upcoming EL platform to potentially double its addressable market while also delivering meaningful cost benefits. 

They added that margin risks appear to be easing and retained Ather Energy as top pick in India’s electric two-wheeler segment. 

The brokers highlighted the company’s strong volume growth and improving profitability. 

The brokerages said Ather’s bookings of around 50,000 units a month are currently constrained by production capacity rather than a lack of demand. The company’s Factory 3.0 expansion, which is expected to add 5 lakh units of annual capacity from Q3FY27, could help address the supply bottleneck. 

With demand continuing to outpace supply, improving margins and fresh capacity coming online, investors are increasingly betting that Ather Energy is entering a stronger phase of growth. The sharp rally in the stock following its Q1 results reflects growing confidence in the company’s ability to scale volumes while moving closer to sustained profitability. 

Source

• https://www.nseindia.com/get-quote/equity/ATHERENERG/Ather-Energy-Limited