Ather Energy: Is this EV stock a good buy for long term growth?

SYNOPSIS: Mid-Cap shares are in focus after Q4 results, with revenue up 73.8% YoY to ₹1,175 crores and net loss narrowing to ₹100 crores. HSBC and Nomura maintained their Buy ratings on the stock.

The shares of a Mid-Cap company specialising in the design, development, and manufacturing of high-performance electric two-wheelers and their associated charging infrastructure are in focus following their Q4 results and Brokerage views.

With a market capitalization of Rs. 35,726.37 crores in the day’s trade, the shares of Ather Energy Ltd rose upto 1.7 percent, making a high of Rs. 953.85 per share compared to its previous closing price of Rs. 937.60 per share.

What Happened

Ather Energy Ltd, engaged in the design, development, and manufacturing of high-performance electric two-wheelers and their associated charging infrastructure, is in the spotlight following their Q4 results and Brokerage views  as follows:

Its Revenue from operations rose by 73.8 percent YoY from Rs. 676 Crores in Q4FY25 to Rs. 1,175 Crores in Q4FY26, and it rose by 23.1 percent QoQ from Rs. 954 Crores in Q3FY26 to Rs. 1,175 Crores in Q4FY26.

Its Net loss YoY decreased from Rs. 234 Crores in Q4FY25 to Rs. 100 Crores in Q4FY26, and on a QoQ basis, it increased from Rs. 84.6 Crores in Q3FY26 to Rs. 100 Crores in Q4FY26. The earnings per share (EPS) for the quarterly period stood at minus Rs. 2.62, compared to minus Rs. 8.06 in the previous year’s quarter.

Brokerage Views on the result

HSBC has initiated/maintained a Buy rating on Ather Energy with a target price of Rs. 1,050 with an upside of 12% from the previous close. The note highlights that near-term profitability timelines may get pushed out due to ongoing commodity cost headwinds, even though the broader long-term investment thesis remains unchanged.

The brokerage emphasises that EV penetration trends in India remain a key structural driver, and continued adoption will be critical for sector growth. Within this landscape, Ather is seen as standing out due to its strong execution and consistently superior, “idiosyncratic” performance versus peers.

While the stock is not considered cheap at current levels, HSBC believes its strong brand positioning and execution quality in the EV space make it an attractive long-term play, especially for investors focused on structural growth in electric mobility.

Nomura maintains a Buy rating on Ather Energy with a target price of Rs. 1,120 with an upside of 19% from the previous close, continuing to position it as a top pick in the two-wheeler EV segment.

The brokerage highlights strong growth visibility, driven by the upcoming EL platform launch and continued network expansion, both of which are expected to significantly scale up volumes over the medium term.

However, Nomura flags near-term margin pressure in 4QFY26, with EBITDA margins estimated at around -5.9% versus its prior estimate of -6.7%. Despite this, it believes underlying demand already exceeds supply, and any increase in fuel prices could act as an additional demand catalyst for Ather.

Company Overview & Others

Ather Energy Ltd is an Indian electric vehicle (EV) company founded in 2013  and headquartered in Bengaluru. It designs and develops electric scooters, battery packs, charging systems, and related software. The company is known for its premium EV scooters like the Ather 450 series and Rizta, and it follows a “software-driven” approach with connected features and regular OTA updates.

It’s considered one of the pioneers in India’s electric two-wheeler market. Along with manufacturing scooters, it also builds its own charging network called Ather Grid and focuses on a fully integrated ecosystem of hardware, software, and infrastructure. The company operates mainly in India and has been expanding rapidly as EV adoption grows in the country.

The FY 26 was a breakthrough year for the network and brand, marked by strong growth in customer traction and operational scale. Monthly registrations reached 35.7K in March’26, reflecting sustained demand momentum across markets.

Financial and market performance also improved sharply, with a market share rising to 18.6%, up 2,080 bps YoY, alongside a gain of 1,100 bps versus Q1 FY 25. Wholesale volumes touched 83K in Q4, growing 76% YoY and 23% QoQ, while the brand emerged as the #1 searched EV brand in Q4 FY 26.

The network expansion further strengthened the ecosystem, with over 6,000 charging points as of March’26 (+1,143 in FY26), 700 experience centres (2x YoY, +349 additions), and 548 service centres (also 2x YoY). Together, these developments reinforced scale, accessibility, and customer confidence across the EV ecosystem.

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