Ather Energy is Nomura’s preferred play in the electric two-wheeler space on the back of strong growth visibility. The international brokerage house believes the current demand itself is muchhigher than supply, and increase in fuel prices could be a further catalyst.
Nomura has set a target price of Rs 1,120. This implies an upside of nearly 20% from current levels.
Nomura on Ather Energy: Higher target on stronger demand hopes
The launch of the new platform is something that the street is watching out for. The management pointed out that this new platform EL is very versatile and low-cost. It will be launched around the festive season and addresses the 100-125k price segment which is 45% of the market.
According to Nomura, Ather Energy’s upcoming EL platform will expand TAM by 50% and also lower costs meaningfully. “Improving scale and operating leverage are likely to drive meaningful margin turnaround. Potential entry into motorcycles offers further long-term optionality,” the brokerage added.
Ather Energy management upbeat on demand in FY27
The management commentary had pointed out that EV demand is turning more mainstream now and might increase further if petrol prices rise. According to them, the expansion in stores to 700 from 350 last year and new model Rizta also helped market share gains in middle India.
Ather Energy: Margin concerns
However, steep cost pressure in the near term and price hikes continue to be concerns for Ather Energy. The rising costs of raw material continue to be a key factor to watch out for.
Ather Energy: Capacity watch
Ather Energy’s current capacity is 35,000 vehicles per month and the new plant is expected to add 42,000 per month by end of FY27. The new plant’s total capacity is projected to be 1 million/year boosting the two-wheeler maker’s future prospects. Nomura also expects the network to expand steadily.
Nomura on Ather Energy – Key upside risks ahead
Nomura highlighted that the key upside risk for Ather Energy would be the extension of the subsidy beyond July, 2026 and inclusion of Ather in the PLI scheme.
About Ather Energy
Ather is the fourth largest Electric 2-wheeler player by volume. It is a pure play EV company that sells E2Ws along with accessories and Atherstack, its in-house developed software that powers its products. Ather was founded by Tarun Sanjay Mehta and Swapnil Babanlal Jain in 2013, with a focus on product and technology development in India in order to build an Electric two-weeler ecosystem. Ather’s offerings consist of 7 variants across 2 product lines – the Ather 450 line and Ather Rizta line. Ather sold 155,394 units commanding a volume market share of 11.4%. Ather is also developing and operating India’s largest electric two-wheeler charging network.
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