Ola Electric Vs Ather: Which electric 2-wheeler stock is a better bet now? One offers up to 40% upside 

Ola Electric vs Ather Energy: Q1 performance

The profitability numbers also moved in different directions. Ather reported EBITDA of Rs 9.45 crore, with an EBITDA margin of 0.8%, compared with an EBITDA loss of Rs 105.97 crore and a -16% margin in Q1 FY26. Ola’s adjusted operating EBITDA loss narrowed to Rs 195 crore from Rs 326 crore in Q4 FY26, while its automotive gross margin stood at 30.5%.

Both companies now have specific operational milestones ahead. Ather’s new scooter is scheduled for launch on August 29, 2026, with AURIC capacity expected to come on stream in Q3 FY27. Ola plans to open its first dealer stores from September 4, 2026, while its cell manufacturing capacity is expected to reach 6 GWh by September 2026.

Ola Electric vs Ather Energy: Q1 revenue and volume

Ather’s Q1 FY27 revenue from operations increased to Rs 1,216.92 crore from Rs 644.58 crore in Q1 FY26, while wholesale volumes increased to 83,418 units from 46,078 units. The company’s investor presentation showed industry registrations at 525,000 units, up 68% year-on-year, while Ather registrations increased 102% to 90,808 units from 44,900 units.

Demand indicators were also strong. Ather received 707,000 enquiries in Q1 FY27, up 95% year-on-year, while paid pre-orders increased 158% to 150,000. Management said the company’s retail demand was running ahead of available supply, with dealer inventory falling from 14 days to three days during the quarter.

Ola’s Q1 FY27 recovery came mainly against the weak Q4 FY26 base. Deliveries increased to 39,192 units from 20,256 units, while orders increased to 44,071 from 22,522. Automotive revenue increased to Rs 455 crore from Rs 265 crore quarter-on-quarter. However, revenue remained below the Rs 828 crore recorded in Q1 FY26.

Q1 FY27 operating data	Ola Electric	Ather Energy
Revenue from operations	Rs 455 crore	Rs 1,216.92 crore
Revenue growth	-45% YoY	+89% YoY
Q1 FY27 deliveries / wholesale volume	39,192	83,418
Registration volume	43,921	90,808
Q1 FY27 orders / paid pre-orders	44,071 orders	150,000 pre-orders
Q1 FY27 market share	8.4%	16.8%

Ola Electric vs Ather Energy: Q1 gross margin and EBITDA

Ola Electric entered Q1 FY27 with a higher reported automotive gross margin. Its automotive gross margin stood at 30.5%, compared with 25.6% in Q1 FY26. The company said industry commodity costs increased approximately 11% during Q1 FY27, with higher copper, aluminium, lithium, plastics and polymer costs contributing to the pressure. Ola expects gross margin to remain around 30% to 32% over the next one to two quarters.

Ather reported an adjusted gross margin of 22.4% in Q1 FY27, compared with 23% in Q1 FY26. Management said commodity inflation had a 5.6 percentage point impact during the quarter. Ather’s reported EBITDA nevertheless moved into positive territory at Rs 9.45 crore, against an EBITDA loss of Rs 105.97 crore in Q1 FY26.

Nomura’s August 3 report calculated Ather’s Q1 FY27 EBITDA at a loss of Rs 33 crore, or -2.7%, compared with its own estimate of a Rs 67 crore loss. That calculation differs from Ather’s company-reported EBITDA figure, so both figures should be attributed separately rather than combined.

Tarun Sanjay Mehta, Executive Director and Chief Executive Officer, Ather Energy Limited, said, ‘Our EBITDA came in at a Rs. 9 crore margin for Q1 2027, which is roughly about 0.8%.’

Ola Electric vs Ather Energy: Pricing and product mix

Ather’s average selling price provides another distinction. The company said its ASP had increased to Rs 1.61 lakh in June 2026 from about Rs 1.50 lakh in Q4 FY26. Management said the June figure was above the quarterly average because pricing increased during the quarter, with the company expecting the higher ASP to provide some protection against further material-cost increases.

Nomura calculated Ather’s Q1 FY27 ASP at Rs 1,50,600, up 7% quarter-on-quarter. The brokerage also noted that Ather’s new EL scooter was scheduled for launch on August 29 and expected the platform to expand Ather’s addressable market while lowering costs.

Ola’s management attributed most of its Q1 FY27 ASP decline to product mix. Emkay’s August 9 report said the ASP decline was 11% quarter-on-quarter, with management attributing around 90% of the decline to product mix. Ola expects ASP to gradually settle around Rs 1.30 lakh, plus or minus 5%.

The product strategies are also different. Ather’s EL platform targets the Rs 1 lakh to Rs 1.3 lakh segment, while Ola is expanding its range around its existing scooter portfolio and preparing Shakti Gen 2, which management said would use LFP cells.

Ola Electric vs Ather Energy: Market share and demand

Ather’s Q1 FY27 registrations increased 102% year-on-year to 90,808, compared with 44,900 in Q1 FY26. Its market share was 16.8% in Q1 FY27, compared with 14.2% in Q1 FY26, according to the company’s investor presentation. Industry registrations increased 68% year-on-year to 525,000 units during the quarter.

Ola’s Q1 FY27 market share increased to 8.4% from 5.1% in Q4 FY26. Its registrations increased 97% quarter-on-quarter, compared with 17% growth for the broader electric two-wheeler market. The company said the improvement came across multiple regions, with West sales increasing 61% quarter-on-quarter, North and South sales each increasing 54%, and East sales increasing 34%.

July data then showed some moderation. Nomura’s data put Ather’s market share at 14.8% in July 2026, compared with 16.1% in June, while Ola’s share stood at 6.9%, compared with 8.3% in June. The same data showed TVS at 27.2%, Bajaj at 22.3% and Hero MotoCorp at 11.2% in July.

Market and demand data	Ola Electric	Ather Energy
Q1 FY27 registrations	43,921	90,808
Q1 FY26 registrations	22,088	44,900
Q1 FY27 market share	8.4%	16.8%
June 2026 market share	8.3%	16.1%
July 2026 market share	6.9%	14.8%
Q1 FY27 registration growth	+97% QoQ	+102% YoY
Industry Q1 FY27 registrations	525,000	525,000

Ola Electric vs Ather Energy: Capacity and distribution

Ather’s immediate constraint was production capacity. Monthly production increased from 24,000 units in April 2026 to 31,000 units in June 2026, while Hosur’s current maximum capacity stood at 35,000 units a month, or about 4.2 lakh units annually. Management said Ather could have sold another 13,000 to 15,000 units a month if supply had been available.

AURIC is expected to add another 5 lakh units of annual capacity, taking Ather’s total capacity to 9.2 lakh units a year. Management expects AURIC Phase 1 to ramp up through Q3 FY27. A potential Phase 2 could add another 5 lakh units, although management has not given a firm investment timeline for that expansion.

Ola’s automotive manufacturing capacity has already been scaled to approximately 1 million units annually. Its immediate manufacturing project is the cell plant, where capacity is expected to increase to 6 GWh by September 2026. On distribution, Ola expects its first dealer stores to go live on September 4, 2026.

Bhavish Aggarwal, Chairman and Managing Director, Ola Electric, said, ‘The strategy now is that company stores will become more like experience centers.’

Ola Electric vs Ather Energy: Cost control and cash

Ola’s consolidated operating expenses declined to Rs 333 crore in Q1 FY27 from Rs 428 crore in Q4 FY26, a 22% quarter-on-quarter decline. Management expects the steady-state operating-cost base to move towards Rs 300 crore to Rs 325 crore a quarter. The company also completed a Rs 780 crore QIP, which was 56% oversubscribed, according to its shareholder letter.

Ather’s operating expenses increased alongside its higher scale, but the company reported its first positive EBITDA in Q1 FY27. Nomura expects EBITDA margins of -5.7% in FY27F, 3.8% in FY28F and 7.2% in FY29F, while its revenue estimates are Rs 5,648.1 crore, Rs 10,172.9 crore and Rs 13,353.4 crore, respectively. These are Nomura estimates and not company guidance.

Ather also completed a Rs 1,300 crore QIP during the quarter. Its management said the company had sufficient liquidity to fund its planned capacity expansion and product programme.

Rastogi said, ‘We continue to structurally improve our cost structure. I think over the next couple of quarters, this OpEx will come down into the INR 300-INR 325 crore range.’

Ola Electric vs Ather Energy: Cell strategy

Ola’s cell programme is a major part of its cost and manufacturing strategy. Its 4680 NMC Bharat Cell has been commercially deployed in performance vehicles, while its 46100 LFP cell has received BIS certification and is vehicle-ready. The company expects greater in-house cell integration as the Gigafactory reaches 6 GWh capacity.

Rastogi said, ‘The Gigafactory is expected to be operational at six gigawatt hour by September, supporting greater own cell integration in our vehicles.’ Ola expects cell revenue to become visible from Q3 FY27. The company has also signed an MoU with Axis Energy covering potential battery-storage deployment of up to 20 GWh by 2032.

Ather’s cost reduction is instead being driven largely through the EL platform. Its March 2026 management update said mechanical simplification, including belt drive, drum brakes and a steel chassis, would reduce material costs while allowing the company to target the Rs 1 lakh to Rs 1.3 lakh segment.

Ola Electric vs Ather Energy: New launches and next steps

Ather’s most immediate product event is the August 29, 2026 launch of its EL scooter. Production has begun, capacity has been planned at 60,000 units a month including AURIC’s new capacity, and Factory 3.0 is expected to become operational in Q3 FY27.

Ola has several near-term milestones. Shakti Gen 2 is scheduled for August 15, 2026, the first dealer stores are scheduled for September 4, 2026, and the 6 GWh cell capacity is expected by September. Management expects cell revenue from Q3 FY27 and meaningful dealer-led scale before the festive season.

The companies are therefore approaching the next phase with different operational priorities. Ather needs to convert its demand pipeline into deliveries as new capacity comes online, while Ola is working to turn its sequential volume recovery into sustained growth while reducing operating costs and expanding its distribution network.

Ola Electric vs Ather Energy: What’s the next trigger

Ather’s immediate focus is on converting its strong demand pipeline into deliveries as new capacity comes online. The company is scheduled to launch its EL scooter on August 29, 2026, while AURIC is expected to ramp towards 42,000 units a month over four to five months. Ola’s near-term priorities are different, with management targeting lower operating expenses, maintaining automotive gross margins and bringing its Gigafactory to 6 GWh capacity by September 2026.

Tarun Sanjay Mehta, Executive Director and Chief Executive Officer, Ather Energy said, ‘The first 42,000 units per month will take us about four to five months to ramp up. So, I think by Q4, we should have a very reliable sense of the daily output that we can do out of that plant.’

On the product side, Mehta said, ‘The EL launch is happening on 29th August.’ He also said production had already started and that the company expected the new platform to materially increase volumes once capacity became available.

For Ola, the focus is on bringing down the cost base while sustaining margins as volumes recover. Deepak Rastogi, Chief Financial Officer, Ola Electric, said, ‘We continue to structurally improve our cost structure. I think over the next couple of quarters, this OpEx will come down into the Rs 300-Rs 325 crore range.’

On the cell business, Rastogi said, ‘The Gigafactory is expected to be operational at six gigawatt hour by September, supporting greater own cell integration in our vehicles.’ Ola has also said cell revenue is expected to become visible from Q3 FY27.

Ola Electric vs Ather Energy: Brokerage ratings

Nomura retained ‘Buy’ on Ather on August 3, 2026 and raised its target price to Rs 1,714 from Rs 1,470. Against the August 3 closing price of Rs 1,273, this implied 34.6% upside. Nomura used a 5.5x average FY28F-FY29F EV-to-sales multiple.

Emkay’s March 16, 2026 report carried ‘Buy’ on Ather with a target price of Rs 1,000, against Rs 713, implying 40.3% upside at that time. On Ola, Emkay’s August 9, 2026 report retained ‘Sell’ with a target price of Rs 30, against Rs 41, implying 26.8% downside. Goldman Sachs’ August 9 report carried ‘Neutral’, with a Rs 40 target against Rs 41.07, implying 2.6% downside.

Brokerage	Company	Rating	Target price	Reference price	Upside / downside
Nomura	Ather	‘Buy’	Rs 1,714	Rs 1,273	+34.6%
Emkay	Ather	‘Buy’	Rs 1,000	Rs 713	+40.3%
Emkay	Ola	‘Sell’	Rs 30	Rs 41	-26.8%
Goldman Sachs	Ola	‘Neutral’	Rs 40	Rs 41.07	-2.6%

Conclusion

The next few quarters will put both companies’ Q1 FY27 numbers to a harder test. Ather enters this phase with stronger revenue growth, higher volumes and a positive reported EBITDA, but its ability to convert 707,000 enquiries and 150,000 pre-orders into actual sales will depend on how quickly AURIC adds supply. 

Ola, meanwhile, has recovered sharply from its Q4 FY26 base, but still needs to turn its Rs 333 crore quarterly operating-cost base, 30.5% automotive gross margin and expanding dealer network into sustained improvement in earnings. With Ather’s EL launch on August 29, 2026, Ola’s dealer rollout from September 4, 2026, and Ola’s 6 GWh cell capacity expected by September, the coming quarters will provide a much stronger test of whether demand can translate into durable financial improvement for both companies.