The Ather Energy share price has been on a roll. The shares ended nearly 3% higher today and have gained 37% in the last 1 month. The gains since listing are nearly 77%. Investors are betting big on Ather Energy’s targeting an EBITDA break-even in the near term.
The company is aiming for a long-term gross margin of 35%. Leading brokerage house Emkay Global recently met the management of the electric two-wheeler maker. Though they do not have a rating on view on the share price, Emkay Global is optimistic about the festive season boost for Ather.
Emkay Global on Ather Energy: EL platform to accelerate gains
Emkay Global pointed out that the new EL platform (likely in the festive season of 2026) should deliver an added 3-4% benefit and market-share gain. Along with this, the shift to Lithium Iron Phosphate (LFP) batteries aims to reduce costs and improve scalability, as they are 15-20% cheaper compared to Nickel Manganese Cobalt (NMC). As the cost structure for an EV is still high, Ather Energy aims for an added 2-3% benefit per annum through sustained R&D and value engineering focus.
Emkay Global on Ather Energy: Full throttle in Central and North India
Adding to that, the company’s distribution is likely to expand to 700 stores in FY26, which currently stands at 440 as of Q1FY26. The company will be focusing on Central and North India. Also, there are signs of early success in non-South markets, with leadership in several of these markets.
Emkay Global on Ather Energy: Focus on vertical integration
Ather Energy has focused on vertical integration in design, technology, and software, enabling quicker responses (for example, faster software and BMS updates) during the transition to light rare earths from the beginning. Also, Ather Energy is addressing critical issues such as vendor monopoly (65% dual sourcing in the bill of materials, internal production of essential components) and demand volatility (measured capacity growth) to guarantee steady profitable expansion. This flexibility leads to reduced cash burn.