Ather Energy shares rise as analysts increase price targets
Ather Energy shares climbed over 8% after HSBC and Nomura raised price targets following the company's return to profitability in the second quarter.
Shares of Indian electric scooter maker Ather Energy rose as much as 8.1% on the BSE following positive updates from major brokerages. HSBC and Nomura both increased their price targets for the firm, citing better-than-expected margins and strong growth momentum following the launch of the Konarc scooter range.
In its second-quarter report, Ather achieved a consolidated net profit of ₹1.3 Cr, marking a turnaround from a loss of ₹154.1 Cr in the same period last year. While other income contributed to the bottom line, operating revenue grew by 62.9% year-on-year to ₹1,464.2 Cr, supported by a 42% increase in vehicle sales.
CEO Tarun Mehta stated that the company will prioritize capacity expansion over near-term profitability. Ather plans to invest ₹122 Cr to increase its annual production capacity by 225,000 units across its facilities in Tamil Nadu and Maharashtra, with completion expected by 2028. These investments are funded through internal accruals and recent capital raises totaling ₹1,500 Cr.
Market demand remains high, with customer enquiries rising by 109% to 1 million during the quarter. The company aims to leverage this growth to solidify its market position despite potential commodity price volatility.