Ather Energy adds another 4% after 14% jump as Nomura and HSBC lift price targets

what happened

Shares of Ather Energy rose about 4% in early trade on Tuesday, extending the previous session's gain of more than 14%, according to TradingView, which cited Moneycontrol. The stock traded at Rs 1,638, ranking among the top gainers on the BSE 500 and NSE 500 and among the most actively traded names on both exchanges. The shares are up 121% so far in 2026, while the Nifty 50 has fallen 13% over the same period. The market capitalisation is roughly Rs 65,000 crore.

Nomura and HSBC both kept their Buy ratings after the company's fiscal second-quarter report and raised their targets. Nomura lifted its target to Rs 2,070 from Rs 1,926, implying 31% upside from Monday's close, and named Ather its top pick in the segment. HSBC raised its target to Rs 1,800 from Rs 1,600, pointing to an unexpected EBITDA break-even, and expects profit-after-tax break-even in FY27. It flagged a possibly muted reception for the new Konarc model as a near-term risk.

For the quarter ended September 2026, the company posted a net profit of Rs 1.26 crore, compared with a Rs 154 crore loss a year earlier. Revenue climbed 63% to Rs 1,464 crore from Rs 899 crore, and EBITDA reached Rs 74.2 crore, its second straight EBITDA-positive quarter. The board approved Rs 122 crore of capital spending to expand plants in Tamil Nadu and Maharashtra.

why it matters

The rally matters beyond one stock because it runs against a weaker Nifty 50 and shows investors rewarding a turnaround in the EV two-wheeler business. Plans to add 75,000 units of annual capacity at Hosur by December 2026, for up to Rs 58 crore, and 1.5 lakh units at Chhatrapati Sambhajinagar by Q2FY28, for up to Rs 64 crore, will be watched as tests of demand for Konarc and the wider electric two-wheeler market.

market impact

Ather Energy and EV two-wheeler peers: strong results and higher targets support the stock; Konarc demand is the main risk

tags

instruments