Shares of Ather Energy jumped as much as 8.1% to touch an intraday high of ₹1,702 on the BSE after foreign brokerages HSBC and Nomura raised their price targets for the electric vehicle manufacturer. The rally built upon positive momentum following the company's Q2 FY27 earnings report and strong customer reception to its Konarc scooter lineup.
According to market data reported by Inc42, the stock was trading 6.8% higher at ₹1,680.60 during morning trade at 11:28 IST, lifting Ather's market capitalisation to ₹66,672.4 crore (approximately $6.9 billion). The upward movement extended the previous session's surge, in which shares closed 13.7% higher at ₹1,574 following the release of the second-quarter financial numbers.
Brokerage Upgrades and Margin Expansion
Both HSBC and Nomura maintained their 'Buy' ratings on Ather Energy, citing better-than-expected operating margins and stronger long-term growth prospects.
HSBC lifted its price target to ₹1,800 from ₹1,600, pointing out that Ather achieved operating EBITDA breakeven earlier than projected despite ongoing commodity price pressures across the automotive sector. Nomura raised its price target from ₹1,926 to ₹2,070 per share. As detailed by Inc42's analysis, Nomura highlighted that Ather's core EBITDA margin—excluding other income—registered at positive 0.8%. This performance beat Nomura's projection of negative 2.6% as well as the broader market consensus estimate of negative 2.7%.
| Metric | Q2 FY27 Performance | Previous Reference / Consensus |
|---|---|---|
| Intraday Stock High | ₹1,702 (+8.1%) | ₹1,574 (Previous close) |
| HSBC Target Price | ₹1,800 | ₹1,600 |
| Nomura Target Price | ₹2,070 | ₹1,926 |
| Core EBITDA Margin | 0.8% | -2.7% (Consensus estimate) |
| Consolidated Net Profit/Loss | ₹1.3 Cr profit | -₹154.1 Cr loss (Q2 FY26) |
| Operating Revenue | ₹1,464.2 Cr | ₹940.7 Cr total income (Q2 FY26) |
Financial Turnaround and Manufacturing Expansion
Ather Energy posted a consolidated net profit of ₹1.3 crore for Q2 FY27, marking a turnaround from a net loss of ₹154.1 crore in the corresponding quarter of the previous financial year. The company had previously logged a net loss of ₹51.1 crore in Q1 FY27.
Operating revenue grew 62.9% year-on-year and 20.3% sequentially to reach ₹1,464.2 crore. When factoring in other income, total income climbed to ₹1,527 crore compared to ₹940.7 crore a year earlier. Operating EBITDA, including other income, reached ₹74.2 crore with a margin of 4.9%, reversing from -9.6% in Q2 FY26. However, operating revenue alone remained ₹61.5 crore below total expenses of ₹1,525.7 crore, showing that other income played an important role in bringing the quarter's net bottom line into positive territory.
To keep pace with rising bookings for the Konarc platform and its core scooter range, as noted by Inc42 Tech Bharat, Ather's board approved a capital expenditure of ₹122 crore. The investment will add 2.25 lakh units of annual manufacturing capacity to meet anticipated delivery volumes over upcoming quarters.
Frequently Asked Questions
Why did Ather Energy shares rise by over 8%?
Ather Energy shares climbed up to 8.1% to ₹1,702 after brokerages HSBC and Nomura raised their price targets on the company, citing better-than-expected Q2 FY27 operating margins and strong order bookings.
What are the new price targets set by HSBC and Nomura?
HSBC increased its price target for Ather Energy to ₹1,800 (from ₹1,600), while Nomura raised its target to ₹2,070 (from ₹1,926). Both brokerages retained 'Buy' recommendations.
What were Ather Energy's headline earnings for Q2 FY27?
Ather reported a consolidated net profit of ₹1.3 crore for Q2 FY27, compared to a net loss of ₹154.1 crore in the year-ago quarter. Operating revenue expanded 62.9% year-on-year to ₹1,464.2 crore.
What is Ather's newly announced capacity expansion plan?
Ather's board approved an investment of ₹122 crore to expand its annual production capacity by 2.25 lakh units, designed to address demand generated by its expanding scooter portfolio.
