Ather Energy shares extended their rally today after the electric two-wheeler manufacturer reported its first quarterly net profit in Q2 FY27, supported by strong revenue growth, higher vehicle sales and a second consecutive quarter of positive EBITDA. The stock gained 14.13% on October 26 and climbed further in early trade on Tuesday, rising to Rs 1,661.50, up 5.49%. The strong performance also prompted brokerages Nomura and HSBC to raise their price targets, citing improving profitability and growth prospects.

Key Highlights

• Ather Energy reported its first quarterly net profit, with revenue rising 63% and vehicle sales increasing 44% year-on-year.

• Nomura raised its target to Rs 2,070, while HSBC increased its target to Rs 1,800 following Q2 results.

Ather Energy Share Price Rises After Strong Q2 Results

Ather Energy share price was also in investor focus after closing Monday, October 26 at Rs 1,575 as against Rs 1,380 at the previous close. The share price had jumped by 14.13% in the prior session, but further jumped by 5.49 per cent to Rs 1,661.50 in early trade on Tuesday.

As per the data on 27th October, Ather Energy shares had risen by 13.78% in the previous week and 10.89% in the last month. The stock had advanced 124.78% so far in 2026 and 126.05% over the preceding year.

The recent surge in activity has coincided with the firm's return to profitability on a quarterly basis as well as improving its sales and operating performance.

Ather Energy Q2 FY27 Results Revenue Rises 63%

The consolidated revenue from operations for Ather Energy Q2 FY27 stood at Rs 1464.2 crore, up 63% from Rs 898.9 crore in the same period of the previous year.

The company reported consolidated profit after tax (PAT) of Rs 1.26 crore while the year-ago period showed a loss of Rs 154 crore. EBITDA was Rs 74.2 crore, despite commodity costs rising, in the second consecutive quarter of positive EBITDA.

The September quarter saw its sales grow by 44% year-on-year, bringing the total number of vehicles sold to 93,000 units, up from 66,000 a year ago. In the electric two wheelers segment, Ather Energy had a 15.1% market share.

The quarterly demonstrates the company's effort to enhance its operating efficiency as it continues to grow sales and maintain profitability.

Ather Energy to Expand Annual Production Capacity to 11.4 Lakh Units

In addition to its quarterly results, board of EV maker Ather Energy has given its approval to expand annual production capacity at the company's current manufacturing unit at Hosur and the soon-to-be-Factory-3.0 in Chhatrapati Sambhajinagar.

The capacity of Hosur increases to 4.95 lakh units from 4.20 lakh units in an annum. The capacity of Factory 3.0 will be expanded from 5 lakh units to 6.50 lakh units.

The expansion will increase the company's total annual production capacity to around 11.4 lakh units in Q2 FY28.

Ather Energy has budgeted Rs 122 crore for the expansion – Rs 58 crore for the Hosur facility and up to Rs 64 crore for Factory 3.0. The extra capacity is to facilitate the company's expansion and growth as demand for electric two-wheelers grows.

Nomura Raises Ather Energy Target Price to Rs 2,070

Nomura maintained its 'Buy' rating on Ather Energy and raised its target price to Rs 2,070 from Rs 1,926. The brokerage pointed to better growth visibility due to the developments of the company in the Konarc field and retained Ather Energy as its 'Bout of the Week' pick in the two-wheeler category.

Average selling prices (ASPs) and margins beat expectations in Q2 and bookings were also solid, which helped contribute to a positive outlook said Nomura. The brokerage also pointed to the factors driving an EV boom becoming a reality.

The revised target reflects a potential upside of around 31.4% given the closing price on Monday at Rs 1,575 on Nomura's shares. This is an estimate of a brokerage and not a guaranteed return.

HSBC Raises Ather Energy Price Target to Rs 1,800

HSBC also maintained its 'Buy' rating and raised its target price to Rs 1,800 from Rs 1,600 following the company's Q2 performance.

The brokerage described the results as another positive surprise, pointing to EBITDA profitability despite challenging commodity-cost conditions. It believes this operational resilience could strengthen confidence in Ather Energy's ability to scale its business over the long term.

However, HSBC flagged a potential near-term risk from a muted response to Konarc. The brokerage now expects Ather Energy to achieve PAT breakeven in FY27.

Based on Monday's closing price of Rs 1,575, HSBC's revised target indicates potential upside of approximately 14.3%.

Also Read: Ecofy partners with Ather Energy to accelerate EV adoption in India

Should Investors Chase the Ather Energy Share Price Rally?

EV Maker Ather Energy's positive results in becoming a profitable company in every quarter, and with a 63% revenue growth, along with an increased sales of vehicles has made the company's operating position stronger. The second consecutive quarter of positive EBITDA also suggests progress towards building a more sustainable business.

However, with the stock up by quite a bit lately, investors should consider its valuation based on the company's profitability, controlling commodity expenses, and its capacity to turn production growth into ongoing profitability. The brokerages' estimates of the company's future performance also vary, with the higher the target price, the more bullish the sentiment.

The most recent rally or target from brokers shouldn't be the only reason for making a decision. Studying the valuation, as well as its future earnings, competitive landscape and execution risk, is still crucial to take into account the stock.