Ather Energy’s shares surged more than 16% in Tuesday’s morning session, hitting a 52‑week high of ₹1,500 before settling at ₹1,451.15. The jump came after the company released its Q1FY27 results, showing a markedly better performance than expected. Investors reacted positively to the improved earnings outlook.
The company’s net loss shrank to ₹51 crore from ₹178 crore a year earlier, while operating loss fell sharply to ₹33 crore from ₹134 crore. Revenue from operations leapt 89% year‑on‑year to ₹1,217 crore, up from ₹645 crore in the same period last year. Software, charging, accessories and services now account for 14% of operating revenue, an increase from 13% previously.
Demand for electric two‑wheelers accelerated, with industry registrations rising 68% year‑on‑year to about 5.25 lakh units, according to Vahan data. Ather’s Q1 volumes grew 81% YoY, outpacing the 68% industry growth. The company’s EBITDA margin improved by 319 basis points to –2.7%.
HSBC kept a ‘Buy’ rating and lifted its target price to ₹1,450, citing better‑than‑expected margin performance and lower other expenses. Nomura also maintained a ‘Buy’ stance, raising its target to ₹1,714 after noting the Q1 EBITDA margin of –2.7% was better than its estimate of –5.6%. CLSA retained an ‘Outperform’ call with a target of ₹1,600, pointing to strong volume growth and capacity expansion.
CEO and co‑founder Tarun Mehta said commodity costs may stay inflationary in the near term, but the impact on margins was lower than expected. He projected adjusted gross margin to exceed 25% over the long run and expects margins to rise further over the next two quarters. The third product, launching on August 29, will be priced between ₹1 lakh and ₹1.20 lakh.
Mehta noted that average selling prices may soften by ₹2,000–₹3,000 after the EL platform launch, though not immediately. He emphasized that the company is focusing on ramping up capacity rather than expanding market share, as demand is growing faster than supply. Ather plans to reach a total net capacity of 77,000 units after the ramp‑up and aims for a market share of more than 25% in the electric two‑wheeler segment.
The firm sold roughly 80,000–90,000 units in Q1 against a demand of about 150,000 units due to supply constraints. More than 90% of customers choosing an Ather scooter opt for the AtherStack Pro, which averages ₹18,000. Ather may accelerate Phase‑II ramp‑up if demand remains strong, but it says it won’t need additional funding for that phase.