Nomura raises Ather Energy target to Rs 1,926 on Konarc-led growth outlook

Nomura maintained its Buy rating on Ather Energy, lifting its target price from Rs 1,714 to Rs 1,926. The brokerage expects the Konarc platform to widen Ather’s addressable market, with FY28 volume forecast at 7.94 lakh units and PAT breakeven projected in FY28.

— Source publishedThu, 10 Sept, 2026, 08:40 IST·First seen Thu, 10 Sept, 2026, 09:28 IST·Source NDTV Profit

What happened

Nomura maintained Buy on Indian electric two-wheeler maker Ather Energy and raised its target to Rs 1,926. It expects the newly launched Konarc platform to

Key facts

  • Target price raised to Rs 1,926 from Rs 1,714 per share
  • FY28 volume estimate: 7.94 lakh units
  • FY29 volume estimate: 10.16 lakh units
  • FY28 and FY29 volume growth: 104% and 28% YoY
  • Revenue growth forecast: 54% in FY27, 100% in FY28, 31% in FY29
  • EBITDA margin forecast: -6.2% in FY27 to 7.6% by FY29
  • PAT breakeven expected in FY28
  • Long-term margin potential: 15-20%
  • Valuation range: 5-7x EV/sales
  • Nomura valuation: 5.5x FY29F EV/sales
  • Competitor PLI benefits expected to end in March 2028

Why this matters

Ather’s Konarc-led scale ambitions reinforce the strategic value of partnerships or acquisitions that accelerate manufacturing capacity, supply-chain resilience and charging-network reach.

What to watch

  • Konarc launch timing, booking trends and delivery ramp.
  • Monthly registrations, market-share movement and geographic mix versus Ola, TVS, Bajaj and Hero MotoCorp.
  • Average selling price, discounting intensity and financing penetration.
  • Gross-margin trajectory, warranty provisions and operating-expense growth relative to volume.
  • Dealer/service-network additions and same-store throughput.
  • Battery-cell, motor-controller and other key-component cost trends.
  • Management guidance on FY28 volume path and PAT-breakeven timing.
  • Accelerate Konarc platform launches across multiple price points and variants.
  • Expand experience centres, service coverage and test-ride capacity in tier-2 and tier-3 markets.
  • Use platform commonality to lower bill-of-materials costs and improve supplier purchasing leverage.
  • Increase financing, exchange and fleet-oriented offers to reduce upfront-price barriers.
  • Prioritize battery reliability, service turnaround and residual-value support to protect premium brand positioning.