Ather Energy shares: Buy, hold or sell? Target prices after Ebitda turns positive in Q2

Eight brokerages see up to 33 per cent upside in Ather Energy Ltd as the two-wheeler EV maker turned Ebitda-positive in the September quarter. Axis Capital's Nishit Jalan has the highest target of Rs 2,100, while Avendus Spark's Mukesh Saraf has the lowest at Rs 1,770, still suggesting 12.4 per cent upside. CLSA's Rishi Kapadia recommended 'Accumulate' on the stock with a target of Rs 2,000, against Monday's closing price of Rs 1,575 apiece.

HSBC's Yogesh Aggarwal suggested 'Buy' and a target of Rs 1,800. Nomura's Kapil Singh sees the stock at Rs 2,070. Equirus Securities' Mihir Vora has a target of Rs 1,788

Ather Energy logged a strong Q2 show, with revenues rising 63 per cent year-on-year (YoY), which were 7 per cent ahead of the Street estimate. The revenue rise was led by 42 per cent YoY volume growth and 15 per cent sequential growth in average selling price (ASP). Ebitda margin turned positive at 0.8 per cent, beating Emkay Global's estimate of minus 3.8 per cent, despite elevated commodity pressure, thanks to calibrated price hikes, structural cost savings and favorable product mix.

Nirmal Bang called Ather India’s leading pure-play E2W players, backed by strong R&D, proprietary software, and a 700+ store network.

"Q2FY27 reinforced our positive view, with PAT turning positive ahead of expectations and demand well ahead of supply (pre-orders and 108 per cent YoY growth). Capacity additions at Hosur and AURIC along with the Konarc rollout should unlock this pent-up demand. We expect a 55 per cent revenue CAGR over FY26-28E, driven by rising EV penetration, EL platform ramp-up, and network expansion. We maintain BUY with a revised target of Rs 1,980," the brokerage said.

Emkay said it would continue to play the E-2W theme via Ather, given its established brand and product, robust gross margin, and potential EL platform scale-up.

"We change our estimates to incorporate increased ASPs, improved margin, and ramp up in volume, raising FY27E/28E/29E EPS by 1 per cent/28 per cent/31 per cent. We retain BUY and reduce our valuation multiple to 6 times, given expected higher capacities, higher volume, and established Ather brand. We raise our target by 2 per cent to Rs 2,250, at 6x Sep-28E EV/S," it said.

This brokerage said Demand continued to be strong in Q2 and is expected to remain strong, supported by unrealized retail potential of 18-20k units per month. To address the higher demand, the management approved additional capacity of 75kpa units at Hosur and 150kpa units at Auric phase 1, taking the total capacity to 1.1mnpa units by Q2FY28, the brokerage noted.