Synopsis

Nomura increased Ather Energy's target price, expecting electric two-wheeler trends to accelerate. The brokerage sees Ather as a top pick to benefit from this EV momentum. New affordable scooter launches and a new plant will address a key market segment. Revenue growth is projected at 54% and 57% for FY27 and FY28. EBITDA is expected to improve, with PAT breakeven anticipated in FY29.

Nomura increased its target price for the shares of EV scooter-maker Ather Energy to Rs 1,470 apiece from Rs 1,120 apiece, saying that it expects electric two wheeler penetration trends to accelerate further in India.

Naming Ather Energy as its top pick to ride on the EV momentum, which it believes to be at an inflection point, the international brokerage said that the company is likely to be a key beneficiary from this trend. The latest target price implies an upside potential of 22.5% from the stock’s previous closing price of Rs 1,200 apiece on NSE.

Nomura noted that Ather has been able to maintain its market share at 18% in FY26 and is currently supply constrained. Its launch of new affordable scooter under the EL platform from Q3 FY27 onwards with a new plant should help address the Rs 100-125k segment (which comprises 45% of the industry), in the international brokerage’s view, which added that success of the new motorcycle platform in the future can provide further upside to estimates.

“Hence, we raise our volume estimates for Ather to 399k (+53% YoY) / 622k (+56% YoY) compared to 399k/510k earlier in FY27/28 and introduce FY29 estimates with 824k units (+32% YoY). Despite a weaker mix, our average selling prices are up by nearly 2% on price hikes to pass on the commodity costs. Hence, we expect strong 54%/57%/36% revenue growth over FY27F/28F/29F. We have factored in some moderation in EV momentum as the Middle-East conflict related fuel price risks have eased. If that doesn't happen, there will be further upside to our estimates,” Nomura said.

Also Read | Ather Energy said to plan $200 million share sale in India

The international brokerage expects EBITDA to improve from a negative 6% in FY27 to 5.1% in FY29, and the company should achieve PAT breakeven in FY29. “Along with strong growth, Ather’s premium positioning keeps long-term margin potential in the range of 15-20%, in our view. Hence, we believe Ather’s premium valuation at 5-7x EV/sales should sustain…We believe the current valuation at 4.0x FY28F EV/sales is attractive given the outlook. We maintain Ather as our top pick in 2Ws,” Nomura concluded.

Ather Energy share price

Ather Energy shares had made a muted debut on the Indian exchanges in May last year. The shares listed at Rs 328 per share on NSE, marking a premium of 2.18% over the IPO price. The stock then soared a whopping 273% to hit a fresh 52-week high of Rs 1,222.10 apiece today.

Also Read | Ather Energy shares debut at 2.2% premium over IPO price

Ather Energy shares have gained more than 4% in one week and 16% in one month. The stock is overall up around 62% in 2026 so far, and around 270% in one year. The company currently has a market capitalisation of nearly Rs 46,480 crore.

(With inputs from agencies)
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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