Synopsis: Ather Energy shares surged 6% after reporting strong Q2 results with 54% YoY revenue growth and narrowing losses. HSBC maintained a Buy rating with a Rs. 700 target, citing margin improvement and the upcoming low-cost scooter platform.
This company is an 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 is now in the focus after it reported Q2 results.
With market capitalization of Rs. 24,865 cr, the shares of Ather Energy Ltd are currently trading at Rs. 657 per share, increasing 6% in today’s market session making a high of Rs. 664.15, from its previous close of Rs. 625.70 per share.
Quarter-on-Quarter (QoQ) Performance
Ather Energy reported a strong sequential performance in Q2 FY26, with sales rising 39% to Rs. 899 crore from Rs. 645 crore in Q1 FY26. EBITDA losses narrowed slightly by 1.5% to Rs. 132 crore from Rs. 134 crore in the previous quarter, while net losses improved 13.5%, reducing to Rs. 154 crore from Rs. 178 crore. EPS also improved by 15.2%, moving to Rs. -4.05 from Rs. -4.78, indicating gradual progress toward profitability.
Year-on-Year (YoY) Performance
On an annual basis, Ather Energy’s revenue grew 54% from Rs. 584 crore in Q2 FY25 to Rs. 899 crore in Q2 FY26. EBITDA losses improved by 5%, reducing from Rs. 139 crore to Rs. 132 crore, while net losses decreased 22% from Rs. 197 crore to Rs. 154 crore. EPS showed significant improvement of 94%, rising from Rs. -64.01 to Rs. -4.05, reflecting better cost control and operational efficiency.
With 66,000 units sold in Q2, volumes increased 67% year-on-year and 42% quarter-on-quarter (QoQ), while the adjusted gross margin came in at 22%, marking a 300-basis-point improvement YoY but a 100-bps decline sequentially. EBITDA margin stands at 12%(negative) in H1FY26 compared to 25%(negative) in H1FY25. It has shown 17.4% market share & 67% YoY growth in Q2 FY26.
Management commentary
Tarun Mehta, Co-founder and CEO of Ather Energy, said that the company’s new low-cost scooter platform will begin contributing to revenue from next year, while non-vehicle income, currently around 12%, is expected to rise further.
He noted that higher other income during the quarter was primarily driven by treasury gains. Mehta also mentioned that the rare-earth magnet shortage, which had previously impacted revenue by Rs. 19.2 crore and EBITDA by Rs. 5 crore in Q2, is now resolved and no longer a concern for operations.
HSBC on Ather
HSBC has maintained a ‘Buy’ rating on Ather Energy, setting a target price of Rs. 700 per share, upside of 6.5% from the current levels. The brokerage noted that gross margin expansion helped narrow EBITDA losses during the quarter.
It highlighted that store network expansion supported Ather’s strong market share performance, while the upcoming EL platform could provide further growth potential. However, HSBC cautioned that the slow pace of EV adoption remains a long-term structural risk.
On the regulatory side, China’s ban on heavy rare-earth magnets disrupted Ather’s operations, delaying the submission of incentive claims under the PM E-Drive scheme and deferring revenue recognition of Rs. 19.2 crore.
Ather Energy Ltd is one of India’s leading electric two-wheeler manufacturers, known for its premium e-scooters like the Ather 450 series. The company focuses on innovation, in-house battery technology, and expanding its charging network. Headquartered in Bengaluru, Ather has rapidly grown its retail footprint and continues to strengthen its EV ecosystem through technology-driven solutions and sustainable mobility offerings.
Written by Manideep Appana
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