HDFC Securities starts Ather Energy coverage with Buy call, sees 31% upside

HDFC Securities has initiated coverage of electric-scooter maker Ather Energy with a Buy rating, citing India’s EV-market potential and projecting 31% upside. The scouted archive page also flags rare-earth supply risks, IPO lock-in expiry and institutional activity.

— FiledWed, 5 Aug, 2026, 10:16 IST·First seen Wed, 5 Aug, 2026, 10:15 IST·Source Financial Express · BrandWagon

What happened

HDFC Securities initiated coverage of Indian electric-scooter maker Ather Energy with a Buy rating, citing EV-market potential and 31% expected upside. The

Key facts

  • 31% expected upside
  • nearly 6% of Ather Energy and Borana Weaves shares

Why this matters

Ather’s improving market narrative may expand partnership and capital-raising options, while making resilient rare-earth sourcing a strategic priority.

What to watch

  • Monthly electric two-wheeler registrations and Ather's market-share trend.
  • Quarterly revenue growth, gross margin, EBITDA loss and operating cash-flow trajectory.
  • New scooter launches, price cuts, financing offers and competitor incentives.
  • Expansion pace of retail outlets, service centres and charging infrastructure.
  • Rare-earth export restrictions, commodity-price changes or supplier-disruption disclosures.
  • IPO lock-in expiries, bulk/block deals and institutional ownership changes.
  • Track Ather's monthly registration share versus Ola Electric, TVS, Bajaj and Hero MotoCorp across major urban markets.
  • Assess whether new experience centres, dealers and service locations are translating into delivery growth without disproportionate retail operating costs.
  • Monitor product-mix changes between premium scooters and lower-priced offerings for implications on average selling price and margin.
  • Watch management commentary on rare-earth sourcing, alternate motor technologies, inventory buffers and supplier diversification.
  • Review shareholding-pattern changes and likely lock-in expiry dates for potential secondary-market supply.