Nomura raises Ather Energy target to Rs 1,926 as it bets on faster EV two-wheeler adoption
Nomura lifted its target price for Ather Energy from Rs 1,714 to Rs 1,926, citing the Konarc launch, scalable EL platform and stronger electric two-wheeler adoption. The brokerage now expects EV two-wheeler penetration to reach 22% by FY30, with electric scooters at 45%.
What happened
Nomura raised Ather Energy’s target price to Rs 1,926, citing stronger EV adoption, the Konarc launch and scalable EL platform. It forecasts 22% electric
Key facts
- Shares rose 4% to Rs 1,646.45
- Target price raised to Rs 1,926 from Rs 1,714
- EV two-wheeler penetration forecast: 22% by FY30, versus 19.6% previously
- Scooter EV penetration forecast: 45%
- Long-term margin potential: 15-20%
- Valuation: 5.5x FY29 estimated EV/sales
- FY28-29 volume estimate: 794,000, up 104% YoY
- Revenue growth forecasts: 54% in FY27, 100% in FY28, 31% in FY29
Why this matters
The projected rise in electric-scooter penetration to 45% by FY30 strengthens the strategic case for partnerships, charging infrastructure, and component-scale investments around Ather’s platform.
What to watch
- Monthly Ather registrations, market-share movement and model-wise booking trends after the Konarc launch.
- Electric two-wheeler penetration versus the 22% FY30 forecast, especially electric-scooter adoption trajectory.
- Gross-margin, EBITDA-loss and cash-burn trends as volumes scale.
- Dealer additions, service turnaround times and customer satisfaction metrics.
- Competitive pricing and launches from Ola Electric, TVS, Bajaj, Hero MotoCorp and other incumbents.
- Battery-cell pricing, localization progress, financing availability and any change in EV subsidy or tax policy.
- Accelerate dealership and service-network additions in high-density urban and tier-2 markets.
- Use the scalable EL platform to shorten model-development cycles and address additional price segments.
- Increase financing, exchange and fleet partnerships to lower upfront-cost barriers for buyers.
- Competitors are likely to respond with price cuts, refreshed scooters, extended warranties and financing incentives.
- Battery, motor, electronics and charging partners could see stronger order visibility if Ather's volume outlook is validated.