Ather Energy shares rise over 3% as HSBC, Nomura initiate coverage with buy rating

Ather Energy shares closed at Rs 345, higher by 1.75 percent from the last close.

Shares of Ather Energy rallied over 3 percent after the electric vehicle maker signed an MoU with the Commerce Ministry to speed up growth in clean mobility and advanced manufacturing, as part of the Build in Bharat initiative led by Startup Policy Forum (SPF), a government statement said on July 29.

Following the development, Nomura and HSBC initiated coverage with a buy on the counter. As part of the tie up, Ather Energy will focus on 'strategic mentorship' for deep-tech startups, along with infrastructure-related support for upcoming players in the EV value chain.

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Nomura and HSBC have set target prices of Rs 458 and Rs 450 per share, respectively. Both brokerages are upbeat on Ather’s growth prospects, driven by the accelerating shift towards electric vehicles in the two-wheeler (2W) segment.

Nomura expects EV penetration in the 2W market to rise from 6 percent in FY25 to 19 percent by FY30. It believes ICE (internal combustion engine) volumes are likely to peak by FY30, aligning with the expected rollout of BS-VII emission norms. While legacy players had a clear edge in the ICE era, the EV transition has reset the playing field. As a result, market shares a decade from now could look very different, and long-term value creation will hinge on a company's success in EVs and exports. In this context, Nomura sees Ather as a significant beneficiary of the EV shift.

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HSBC highlights Ather's position as the fourth-largest EV 2W maker, with a 14 percent market share. It believes Ather’s strong product quality and tech leadership are difficult to replicate, even for larger rivals with deep pockets. HSBC expects technology and distribution expansion to drive further market share gains. The brokerage forecasts a revenue CAGR of 47 percent between FY25 and FY28 and expects the company to achieve EBITDA breakeven by Q4FY27. It also notes that Ather’s stock performance will depend more on its execution than overall industry growth, with faster EV penetration offering meaningful upside to earnings and valuation.

Bengaluru-based EV maker Ather Energy narrowed its net loss to Rs 234.4 crore in the January–March quarter of FY25, down from Rs 283.3 crore a year ago, driven by strong demand for its flagship family scooter, the Rizta. The company’s revenue for the quarter rose 29 percent year-on-year to Rs 676 crore, up from Rs 523.4 crore, driven by higher sales of 40,700 vehicles compared to 35,908 units in Q4 FY24. Despite a 12.6 percent rise in expenses to Rs 922.2 crore from Rs 818.7 crore, Ather’s EBITDA loss narrowed to Rs 172.5 crore from Rs 238.5 crore.

Ather Energy shares closed at Rs 345, higher by 1.75 percent from the last close.

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