Ather Energy shares climbed 4% on Tuesday, extending gains after the company turned profitable in the September quarter. Global brokerages Nomura and HSBC raised their price targets, pointing to better operational performance. The electric two-wheeler maker also announced plans to invest Rs 122 crore to expand its manufacturing capacity in Tamil Nadu and Maharashtra.
Ather Energy saw its stock price climb 4% on Tuesday, continuing a strong rally that has seen shares gain about 18% over the last two trading sessions. The rise follows the company’s recent earnings report, where it posted a profit, marking a major milestone for the electric scooter manufacturer.
For the quarter ending in September 2026, Ather Energy reported a profit of Rs 1.26 crore, a significant improvement from the Rs 154 crore loss during the same period last year. Revenue also showed strong growth, rising 63% to Rs 1,464 crore. This performance has caught the attention of global brokerages, leading to improved outlooks from analysts.
Nomura has increased its price target to Rs 2,070, citing the company’s new Konarc platform and improved profit margins as key drivers. HSBC also raised its target to Rs 1,800, highlighting that the company is effectively managing costs while growing its business. Analysts believe that as the shift toward electric vehicles picks up, more companies will need to focus on electrification to keep up with competition.
To keep up with rising demand, Ather Energy plans to boost its manufacturing capacity. The board has approved Rs 122 crore in new spending for this purpose. The company will add 75,000 units of capacity at its Hosur factory by December 2026. This will be followed by a larger expansion in Chhatrapati Sambhajinagar, which is expected to add 1.5 lakh units by the second quarter of the 2028 financial year.
While the market is optimistic, the electric two-wheeler sector remains highly competitive in India. Ather faces pressure from major players like Ola Electric, TVS Motor, and Bajaj Auto. While the company’s profit turnaround is positive, analysts have noted that the market for new models can become crowded. Investors should keep a close watch on how efficiently the company executes its factory expansion and whether it can maintain its profit margins while competing for market share.