Ather’s income from operations jumped 88.8% yr on yr to Rs 1,217 crore. Consolidated EBITDA turned constructive at Rs 9 crore throughout the quarter, in opposition to an ebitda lack of Rs 106 crore a yr earlier. Margins improved 319 foundation factors sequentially to -2.7% regardless of commodity headwinds.
Why are Nomura, CLSA, HSBC, and Emkay bullish?
Nomura maintained its Purchase score on Ather Vitality and raised its goal value to Rs 1,714 from Rs 1,273, implying a 34.6% upside. The brokerage retained Ather as its high decide within the electrical two-wheeler section, saying EV penetration in India has reached an inflection level, with demand persevering with to outpace provide. It expects the upcoming EL platform to just about double the corporate’s whole addressable market whereas considerably decreasing prices.
Additionally learn: Ather Vitality raises Rs 1,200 crore from India-Japan Fund, Hero Motocorp, founders, launches Rs 1,500-crore
The Japanese brokerage believes margin dangers have largely eased, whereas enhancing scale and working leverage ought to assist Ather obtain EBITDA breakeven by FY28. The brokerage additionally sees the corporate’s potential entry into the bike section as a long-term progress alternative. It added that coverage measures similar to ICE automobile restrictions or extra EV incentives in additional states, together with Ather’s inclusion within the PLI scheme, might present additional upside.
CLSA maintained its Outperform score on Ather Vitality with a goal value of Rs 1,600 (26% upside). The brokerage stated Ather’s volumes rose 81% yr on yr within the first quarter of FY27, outpacing the electrical two-wheeler trade’s 68% progress. CLSA famous that bookings are operating at round 50,000 items monthly, nicely above the present manufacturing capability of 35,000 items, indicating that the corporate is constrained by capability reasonably than demand.
It expects the upcoming Manufacturing facility 3.0, with an annual capability of 5 lakh items, to take away this bottleneck from the third quarter of FY27. The brokerage added that current value hikes and value discount measures ought to assist margins, whereas the launch of the EL platform throughout the festive season is prone to maintain quantity momentum.HSBC maintained its Purchase score on Ather Vitality and raised its goal value to Rs 1,450 (14% upside). The brokerage stated the corporate’s margin efficiency was pushed by a sharper-than-expected decline in different bills. It famous that the administration stays assured of sturdy quantity progress and a restoration in market share as soon as extra manufacturing capability comes on stream. HSBC added that Ather’s sturdy model within the electrical automobile section and constant execution justify a premium valuation.
Learn extra: Ather Vitality shares zoom 18% after Q1 outcomes. Why is it Nomura’s high 2-wheeler decide?
Emkay maintained its Purchase score on Ather Vitality and raised its goal value by 19% to Rs 1,600, implying a 25% upside. The brokerage stated the primary quarter factors to a structural, multi-year demand upcycle, with the electrical two-wheeler trade reaching an inflection level pushed by sturdy tailwinds.
It cited transport electrification, supported by initiatives such because the PM E Drive Scheme and the Delhi EV Coverage, together with a real shift in shopper choice in the direction of electrical autos amid considerations over gas costs and availability.
Regardless of provide chain challenges, Emkay famous that Ather ramped up manufacturing to its full capability of 35,000 items monthly, working at practically 100% utilisation, whereas retail gross sales practically doubled yr on yr. Seller stock additionally fell sharply to a few days from 14 days on the finish of the fourth quarter of FY26, reflecting strong demand.
(Disclaimer: Suggestions, recommendations, views and opinions given by the specialists are their very own. These don’t symbolize the views of The Financial Instances)
