Ather Energy Surges 18% on Narrower Losses

Ather Energy's stock price experienced a significant surge of 18%, reaching a new high of ₹1,500 on August 4, 2026. This rally was driven by the company's first-quarter fiscal year 2027 financial results, which indicated substantial improvement.

The company's consolidated net loss for Q1 FY27 narrowed considerably to ₹51 crore, a notable decrease from ₹178 crore reported in the same period of the previous fiscal year. This reduction in losses reflects structural enhancements within the business as operational scale increased.

Furthermore, Ather Energy reported an impressive 89% year-on-year increase in revenue from operations, which climbed to ₹1,217 crore in Q1 FY27. This growth was propelled by robust volume expansion, strategic pricing adjustments, and an increasing contribution from non-vehicle-related revenue streams.

In a significant development for the company, its consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) turned positive, reaching ₹9 crore. This marks a substantial turnaround from a negative Ebitda of ₹106 crore in Q1 FY26. Despite commodity inflation impacting raw material costs, Ather Energy's Ebitda margin at -2.7% outperformed market expectations.

Analysts at Nomura remain optimistic about Ather Energy, maintaining it as their top pick within the electric two-wheeler sector. They foresee strong EV market growth in India and anticipate Ather's upcoming EL platform to expand the total addressable market (TAM) and reduce costs. Nomura has raised its target price for Ather Energy to ₹1,714, suggesting a potential 35% upside from its last closing price.