Synopsis: Ather Energy shares rose 10% as CLSA maintained an Outperform rating with a Rs. 1,450 target, citing long-term growth from the EL platform, though near-term margin pressure and raw material inflation remain concerns.
The shares of this Indian electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems are in the spotlight after it rose by 10 per cent in today’s session following an upside target given by CLSA Brokerage.
With a market capitalisation of Rs. 41,949 cr, the shares of Ather Energy Ltd were trading at Rs. 1092.45 per share, surging 10% in today’s market session, making a high of Rs. 1,095.70, up from its previous close of Rs. 998.15 per share. The stock has delivered returns of 227% over the past year, 47% year-to-date, 52% in the last six months, and 13% over the past month.
CLSA Commentary
CLSA has reiterated its Outperform rating on Ather Energy and maintained a target price of Rs. 1,450, which is upside of 45% from the previous close, expressing confidence in the company’s long-term growth prospects. The brokerage believes Ather’s upcoming EL platform and portfolio diversification will help expand its addressable market and support profitable growth over time.
Despite the positive outlook, CLSA expects near-term margin pressure due to rising raw material costs, which remain a key challenge for the electric two-wheeler maker. The brokerage also highlighted that the PM E-Drive subsidy is set to expire this quarter, with investors closely monitoring whether the government extends the scheme.
CLSA further noted that Ather’s planned capital raise is expected to fund future growth initiatives and strengthen supply-chain diversification. It believes the new EL platform will improve cost efficiencies while enabling the company to cater to a wider customer base, supporting its long-term expansion strategy.
Another Positive Trigger
The Delhi Cabinet’s approval of EV Policy 2.0 is also seen as a positive trigger for Ather Energy, contributing to its stock surge. The policy, set to begin from July 1, 2026, involves a massive Rs. 15,000 crore investment over four years to promote electric mobility and accelerate EV adoption in the capital.
A key highlight of the policy is the ambitious target of 95% of new vehicle registrations being electric by 2027, along with attractive incentives such as a Rs. 30,000 subsidy for electric two-wheelers and Rs. 50,000 for three-wheelers in the first year. These measures are expected to directly support demand for electric two-wheelers like Ather’s products.
The policy also strengthens long-term EV adoption through stricter regulations, including mandatory electric registration for autos from January 2027 and e-two-wheelers from April 2028. Overall, the announcement has improved sentiment for EV makers like Ather by signaling strong government push for green mobility.
Ather Energy Ltd is an Indian electric vehicle (EV) manufacturer specialising in premium electric scooters, charging infrastructure, and connected mobility solutions. The company designs and manufactures products such as the Ather 450 and Ather Rizta. It also operates the Ather Grid fast-charging network and focuses on innovation in battery technology, software, and smart mobility solutions.
On the financial front, it reported strong growth in Q4FY26. Revenue surged 74% YoY to Rs. 1,175 crore from Rs. 676 crore in Q4FY25. The company’s EBITDA loss narrowed significantly to Rs. 69.6 crore from a loss of Rs. 172 crore, while net loss reduced to Rs. 100 crore from Rs. 234 crore. EPS also improved to a loss of Rs. 2.62 from a loss of Rs. 8.06 in the year-ago period, reflecting continued progress toward profitability.
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