Ather Energy shares rose after brokerage Nomura increased its target price to ₹1,926, citing the launch of the mass-market Konarc scooter. The company is pivoting toward the volume-driven segment, supported by strong backing from Hero MotoCorp. Investors are focusing on the firm's path to profitability and its plan to scale production to meet rising demand.
Ather Energy shares rose approximately 4% on September 10, 2026, following a positive report from brokerage firm Nomura. The firm reiterated a 'Buy' rating and increased its target price for the electric two-wheeler manufacturer to ₹1,926 per share. This market enthusiasm is largely tied to the launch of the 'Konarc' scooter, which marks Ather's strategic shift toward the competitive mass-market segment.
Targeting the Mass Market
The Konarc scooter, launched with a starting price of ₹99,999, is designed to help the company reach a wider customer base beyond its traditional premium offerings. By entering this high-volume category, Ather aims to capture a larger share of the electric vehicle (EV) market. To support this growth, the company is significantly expanding its manufacturing infrastructure. Currently, production is centered at the Hosur facility, but the company is also scaling up its newer AURIC facility. Once this site reaches full operational capacity, it is expected to contribute 42,000 units per month, providing the necessary volume to support the Konarc's rollout.
Financial Growth and Strategic Backing
Nomura’s analysis projects strong revenue acceleration for the company, with growth estimates of 54% in FY27, 100% in FY28, and 31% in FY29. A critical monitorable for investors is the company’s path to profitability. Analysts project that Ather could move toward EBITDA positivity, with margins expected to improve from -6.2% in FY27 to 7.6% by FY29, eventually leading to PAT breakeven by FY28. Stability for the business is further reinforced by its largest investor, Hero MotoCorp, which recently increased its equity stake in Ather to approximately 32.8%. This sustained institutional support is viewed as a vote of confidence in the company’s long-term business strategy.
Risks and Market Challenges
Despite the positive outlook, the company faces inherent risks that investors should monitor. The EV sector in India is highly sensitive to government policies and subsidy changes, which have historically supported adoption. Furthermore, Ather operates in an increasingly crowded market where intense competition could impact pricing power and market share. Profitability is not guaranteed and remains dependent on the company's ability to efficiently scale its new 'EL' platform, manage commodity price fluctuations for battery components, and maintain margins in the price-sensitive mass-market segment. Moving forward, the key indicators for shareholders will be the actual production ramp-up at the AURIC site, the demand reception for the Konarc, and the company's progress in narrowing its losses.