Revenue Surges 89% as Improving Margins, Positive EBITDA and Strong Demand Lift Investor Sentiment
Shares of Ather Energy rallied nearly 18% on Tuesday to touch an all-time high of ₹1,500, after the electric two-wheeler manufacturer reported a strong set of first-quarter results for FY27. The stock had closed at ₹1,272.7 in the previous session, with investors reacting positively to the company’s robust revenue growth, improving profitability, expanding margins and optimistic outlook. Strong demand for its electric scooters, upcoming manufacturing expansion and favourable brokerage commentary further strengthened sentiment.
Revenue Growth and Profitability Improve Sharply
For the quarter ended June 2026, Ather reported an 89% year-on-year increase in revenue from operations to ₹1,217 crore, while total income rose 87.2% to ₹1,260 crore. The company also made significant progress toward profitability, with its net loss narrowing sharply to ₹51 crore, compared to ₹178 crore in the corresponding quarter last year.
A major highlight of the quarter was the company’s operating performance. Consolidated EBITDA turned positive at ₹9 crore, compared with a loss of ₹106 crore in Q1 FY26, while the EBITDA margin improved by 1,650 basis points to 0.8%, reflecting stronger operating leverage and improving unit economics.
Demand Continues to Outpace Production
Operational metrics remained equally strong during the quarter. Ather delivered 83,173 electric scooters, while customer interest continued to accelerate. The company reported 7.07 lakh customer enquiries, up 95% year-on-year, and pre-orders increased 158% to 1.5 lakh, indicating that demand continues to exceed current production capacity.
To support future growth, Ather confirmed that its AURIC manufacturing facility remains on track to commence production during Q3 FY27. The company also announced that the first electric scooter based on its new EL platform will be unveiled on August 29, expanding its product portfolio and manufacturing capabilities.
Brokerages See Further Upside
Following the quarterly results, several leading brokerages reaffirmed their positive outlook on the stock.
CLSA maintained its ‘Outperform’ rating with a target price of ₹1,600, citing strong order momentum, healthy booking trends, upcoming capacity expansion and continued demand exceeding production. HSBC retained its ‘Buy’ recommendation while raising its target price to ₹1,450, highlighting better-than-expected operating margins driven by lower costs and expecting further market share gains as additional manufacturing capacity comes online.
Among major brokerages, Nomura remained the most optimistic, reiterating its ‘Buy’ rating with a target price of ₹1,714. The brokerage described Ather as its preferred electric two-wheeler company, supported by strong execution, improving profitability, premium brand positioning and a healthy long-term growth outlook.
Expansion Strategy Continues to Support Growth
Analysts believe Ather’s improving financial performance is being supported by multiple structural growth drivers. Alongside stronger vehicle sales, the company continues to benefit from improving unit economics, higher contribution from software and services, expansion of manufacturing capacity and an active new product pipeline.
The commissioning of the AURIC plant is expected to significantly increase production capacity, while the launch of the EL platform could help Ather strengthen its competitive position in India’s rapidly expanding electric two-wheeler market.
Outlook
Ather Energy’s June quarter has reinforced investor confidence in the company’s long-term growth strategy. Strong revenue growth, positive EBITDA, narrowing losses and sustained customer demand indicate that the company is moving closer to achieving consistent profitability. With additional manufacturing capacity expected in the coming months and several new products in the pipeline, Ather appears well positioned to benefit from the continued expansion of India’s electric mobility market.
