The stock of electric two-wheeler company Ather Energy saw a huge rally with a rally of almost 18%, taking its price to a new high mark of ₹1,500 per share. The huge increase in the stock price was due to bullish sentiments of major brokerage firms after witnessing strong performance of Ather Energy in Q1 FY27. The stock of the company witnessed its new high after observing its closing value of ₹1,272.7 in the previous day.

Sharp upward momentum and financial metrics

The rapid escalation was observed a day after Ather Energy’s financials report, which indicated strong performance in critical ratios such as revenue generation, operational margins, and overall profitability. Consumer demand for Ather’s electric product lines, significant gains in operating leverage, recent injection of capital through funding, and growing market expectation about future product launches also strengthened the sentiment.

Ather Energy experienced significant financial growth during the first quarter, ending the period of June 2026. The company has recorded revenues from operations of ₹1,217 crore, which is a year-on-year growth of 89%. The total consolidated income has followed a similar trend of 87.2%, recording ₹1,260 crore in the same period.

In addition to the top-line growth, Ather Energy has also posted impressive improvement in financial loss reduction and bottom-line measures. For the quarter ended September 2026, there was a net loss of ₹51 crore as compared to a net loss of ₹178 crore in the same period last year. The EBITDA of the company turned positive and earned ₹9 crore in revenues as compared to a loss of ₹106 crore in the first quarter of FY26. EBITDA margin expanded by 1650 basis points to 0.8%.

Target price revisions and capacity pipeline

Operationally, Ather Energy delivered strong delivery metrics and had strong demand growth during the quarter under review. In Q1 FY27, the electric two-wheeler manufacturer sold 83,173 electric scooters. Customer interest was unprecedented, touching 7.07 lakh customer enquiries, a rise of 95%. Pre-orders for the scooter also increased by a substantial margin of 158% to reach 1.5 lakh units, clearly reflecting the segment demand for Ather scooters far outstripped the company’s current production capacity.

To overcome this continued constraint on supply, Ather Energy announced that its manufacturing plant, AURIC, was being built and set up as per the schedule. The plant is expected to be commissioned for full-scale commercial production in the third quarter of fiscal year 27. In addition, the company announced that the very first electric vehicle developed based on its next-generation EL platform is slated to go on sale on August 29.

After the release of these financial and operations parameters, the sentiment regarding Ather Energy remained positive across leading global brokerage houses, resulting in a broad sell-through re-rating in the equity market. Financial analysts noted improving unit economics, rising software income contribution and digital services, manufacturing investment plans, and an aggressive product schedule as key positives for the company’s long-term growth.

CLSA retained its ‘Outperform’ rating on the stock and the target price has been reduced to ₹1,600 from earlier ₹2,000. The firm noted Ather’s quick volume expansion, solid order book, planned manufacturing scale-up and the imminent launch of the EL platform, emphasising that consumer demand always exceeds available supply. 

HSBC maintained its ‘Buy’ rating on the share while raising its target price to ₹1,450 per share, citing higher margins that will be bolstered by lower operating costs, and anticipating a regain of market share from new production capacity. Nomura also retained its ‘Buy’ rating and set a ‘Street’ target price of ₹1,714 per share for Ather Energy, saying it has executed and established brand value well and has continued long-term growth potential within this category.

Conclusion

Ather Energy shares were at ₹1,463.9 on the day of the rally, during trading hours. At this trade, the across-the-board market value of the electric vehicle company came down to ₹57,349 crore (approximately $6 billion).

Net losses have been narrowing against a backdrop of positive earnings from operations (EBITDA), Guinness World Record deliveries, and a strategic call to action for production expansion, strengthening Ather Energy’s long-term prospects, according to the brokerage’s positive findings.