Ather Energy stock jumps another 4% after 14% rally; Nomura, HSBC raise targets following strong Q2 results

The stock was also among the most actively traded counters on both exchanges. The stock has surged 121 percent so far in 2026, sharply outperforming the Nifty 50, which has declined 13 percent during the same period. Ather Energy's market capitalisation stood at approximately Rs 65,000 crore. Nomura maintained its 'Buy' rating on Ather Energy and raised its price target to Rs 2,070 from Rs 1,926, implying an upside potential of 31 percent from Monday's closing price.

The brokerage reaffirmed Ather Energy as its top pick in the electric two-wheeler segment, citing stronger growth visibility with Konarc, better-than-expected average selling prices (ASPs) and margins in Q2, and robust bookings. Nomura said the drivers for an inflection in electric vehicle demand were in place. It also said that future stock returns would increasingly depend on the importance of electric vehicles in original equipment manufacturers' (OEMs) businesses.

HSBC also maintained its 'Buy' recommendation and raised its price target to Rs 1,800 from Rs 1,600 following Ather Energy's stronger-than-expected quarterly performance. The brokerage highlighted the company's surprise EBITDA break-even amid challenging commodity cost conditions. It said the operational resilience should strengthen market confidence in Ather Energy's ability to scale its business over the long term.

HSBC now expects the company to achieve profit-after-tax break-even in FY27. However, it flagged a potentially muted market response to Ather Energy's new product, Konarc, as a near-term risk. Ather Energy reported a net profit of Rs 1.26 crore for the quarter ended September 2026, compared with a loss of Rs 154 crore in the corresponding quarter last year. Revenue from operations jumped 63 percent year-on-year to Rs 1,464 crore from Rs 899 crore.

EBITDA stood at Rs 74.2 crore, marking the company's second consecutive EBITDA-positive quarter, against a loss of Rs 90.7 crore a year earlier. EBITDA margin improved to 4.9 percent from a negative 10 percent. The company's board approved capital expenditure of Rs 122 crore to expand manufacturing capacity at its Tamil Nadu and Maharashtra facilities. Ather Energy plans to add 75,000 units of annual capacity at its Hosur factory by December 2026, involving investment of up to Rs 58 crore.

It also plans to add 1.5 lakh units of annual capacity at its Chhatrapati Sambhajinagar facility by Q2FY28, at an estimated investment of up to Rs 64 crore.