Revenue Jumps 89%, EBITDA Turns Positive for the First Time, While Nomura Raises Target Price to ₹1,714 and Reaffirms 'Buy' Rating

Shares of Ather Energy Ltd witnessed a sharp rally on Tuesday, climbing nearly 18% to a fresh all-time high after the electric two-wheeler manufacturer reported a strong set of financial results for the first quarter of FY27. The company's impressive earnings, marked by a significant reduction in losses, strong revenue growth and a milestone positive EBITDA, strengthened investor confidence in its long-term growth story.

The stock surged to an intraday high of ₹1,500 on the National Stock Exchange (NSE), making it one of the top-performing stocks of the day. The rally was further supported by bullish commentary from global brokerage Nomura, which maintained its 'Buy' rating and increased its target price, citing improving profitability and favourable industry dynamics.

The latest performance underscores Ather Energy's growing position in India's rapidly expanding electric vehicle (EV) market, where demand continues to outpace supply amid supportive government policies and rising consumer adoption.

Stock Climbs to Fresh Lifetime High

Ather Energy opened the trading session with strong gains following the release of its quarterly earnings and continued to attract heavy buying throughout the morning.

The stock rose nearly 18% to touch a record high of ₹1,500, while trading volumes increased significantly. More than 9.25 million shares were traded on the exchanges during the early hours, indicating strong participation from institutional as well as retail investors.

Since its stock market debut, Ather Energy has emerged as one of the strongest performers in the EV segment. The stock generated returns of more than 150% during 2025 and has already gained close to 97% in 2026, reflecting sustained investor optimism regarding India's electric mobility sector.

Strong Q1FY27 Results Surprise the Street

Ather Energy reported robust growth across key financial parameters during the April–June quarter, demonstrating continued improvement in operating performance.

Q1FY27 Financial Highlights

Revenue from operations nearly doubled compared to the previous year, driven by higher vehicle deliveries, calibrated pricing strategies and increasing contribution from software, accessories and other non-vehicle revenue streams.

At the same time, consolidated net loss narrowed sharply, highlighting the benefits of improving scale and operational efficiency.

Positive EBITDA Marks a Major Milestone

One of the biggest highlights of the quarter was Ather Energy reporting positive consolidated EBITDA for the first time.

The company posted an EBITDA of ₹9 crore, compared with an EBITDA loss of ₹106 crore during the same quarter last year.

Although commodity inflation continued to increase raw material costs, Ather's EBITDA margin of -2.7% was significantly better than market expectations of around -7%.

The achievement signals that the company is steadily progressing toward sustainable profitability.

Demand Continues to Outstrip Supply

Management highlighted that customer demand remains exceptionally strong across its product portfolio.

During the quarter:

• Customer enquiries increased 95% year-on-year to approximately 707,000.

• Pre-orders jumped 158% year-on-year to nearly 150,000.

According to the company, rising consumer confidence in electric vehicles, expanding charging infrastructure and favourable government policies continue to drive rapid growth in demand.

Management also stated that current demand remains substantially higher than available production capacity.

Government Policies Continue to Support EV Adoption

The Indian electric vehicle industry continues to benefit from several structural growth drivers.

These include:

• Government incentives promoting EV adoption.

• Lower running costs compared to petrol vehicles.

• Increasing environmental awareness.

• Rising fuel prices.

• Expansion of public charging infrastructure.

• Technological improvements in battery performance.

These factors are expected to support sustained growth in electric two-wheeler sales over the coming years.

Nomura Remains Bullish on Ather Energy

Following the quarterly earnings announcement, global brokerage Nomura reiterated its 'Buy' recommendation on Ather Energy and raised its target price to ₹1,714, implying an upside of around 35% from the previous closing price.

The brokerage described Ather as its preferred investment in India's electric two-wheeler segment.

According to Nomura, the company's improving scale, expanding product portfolio and operating leverage are expected to drive meaningful earnings improvement over the next few years.

Upcoming EL Platform Could Transform Growth

One of the key reasons behind Nomura's optimism is Ather's upcoming EL platform, which is expected to significantly expand the company's addressable market.

The brokerage believes the new platform could:

• Nearly double Ather's addressable market.

• Reduce manufacturing costs through platform efficiencies.

• Improve profitability.

• Accelerate volume growth.

• Strengthen competitive positioning.

Nomura also expects Ather to achieve EBITDA breakeven during FY28, driven by improving operating leverage and higher production volumes.

Motorcycle Segment Offers Additional Growth Opportunity

Beyond electric scooters, Ather is also preparing to enter the electric motorcycle segment.

Industry experts believe this could unlock another major growth opportunity, allowing the company to compete across a wider range of consumer categories.

The launch would diversify revenue streams while expanding Ather's brand presence within India's rapidly evolving electric mobility ecosystem.

India's EV Industry Approaching an Inflection Point

India's electric two-wheeler market continues to witness rapid structural growth.

Key drivers include:

• Government policy support.

• Rising EV penetration.

• Lower battery costs.

• Increasing consumer acceptance.

• Better charging infrastructure.

• Expansion of financing options.

Industry analysts expect EV adoption to accelerate significantly over the next five years as affordability improves and charging networks continue expanding across urban and semi-urban markets.

Companies with established brands, proprietary technology and strong distribution networks are expected to benefit the most from this transition.

Key Risks Investors Should Monitor

Despite the positive outlook, investors should remain aware of several challenges.

Important factors include:

• Commodity price volatility.

• Battery raw material costs.

• Increased competition from legacy manufacturers.

• Changes in government subsidy policies.

• Supply chain disruptions.

• Execution of new product launches.

Maintaining profitability while expanding production capacity will remain a key focus area for the company.

Market Outlook

Ather Energy's Q1FY27 performance represents an important milestone in the company's evolution from a high-growth startup to a financially stronger EV manufacturer. The sharp improvement in revenue, significant reduction in losses and achievement of positive EBITDA indicate that the company's operating model is benefiting from increasing scale and improving efficiencies.

Looking ahead, India's electric vehicle industry continues to offer substantial long-term growth potential, supported by favourable government policies, rising environmental awareness and accelerating consumer adoption. Ather appears well positioned to benefit from these structural trends through its expanding product portfolio, strong brand recall and upcoming platform launches.

While the stock has witnessed an exceptional rally following the earnings announcement, future performance will depend on the company's ability to sustain volume growth, improve profitability and execute its expansion plans in an increasingly competitive market. Investors should monitor upcoming product launches, margin trends, capacity expansion and overall EV demand as key indicators of future growth.