Synopsis : Ather Energy shares have surged nearly 200% over the past year as India's electric two-wheeler market gathers momentum. While the rally has been impressive, analysts from SBI Securities, Emkay Global and technical experts believe the EV maker still has room to grow, supported by expanding market share, improving margins and rising industry adoption.
India's electric two-wheeler industry is witnessing one of its strongest growth phases yet. Rising fuel prices, improving charging infrastructure and growing consumer acceptance have accelerated EV adoption across the country, with industry penetration continuing to climb through 2026.
Among the listed EV manufacturers, Ather Energy has emerged as one of the biggest beneficiaries of this trend. Its shares have delivered an extraordinary rally over the past year, leaving investors wondering whether the stock still offers meaningful upside or if most of the optimism has already been priced in.
While the valuation has become significantly richer, brokerages continue to believe Ather's long-term growth story remains intact, driven by expanding production capacity, improving profitability and increasing market share.
Strong finish to FY26
Ather Energy closed FY26 on a record-breaking note, delivering its highest-ever quarterly sales and revenue.
The company sold 83,418 electric scooters during the fourth quarter, representing a robust 76% year-on-year increase. Revenue for the quarter climbed to ₹1,214 crore, while adjusted gross margins expanded to 25%, compared with 18% in the corresponding quarter last year.
Operational efficiency also improved meaningfully. EBITDA losses narrowed to ₹30 crore, with the EBITDA margin improving to negative 2.5%, reflecting the company's continued progress toward profitability.
Sales growth remains strong
For the full financial year, Ather delivered 2.63 lakh electric two-wheelers, registering 69% annual growth. Total income reached ₹3,823 crore, marking the company's strongest yearly revenue performance so far.
The company also continued expanding its physical presence across India. By the end of FY26, Ather operated around 700 Experience Centres, almost doubling its retail footprint compared with the previous year. Its service network expanded to nearly 550 centres, while its public charging ecosystem crossed 6,000 charging points nationwide.
The rapid expansion of retail, service and charging infrastructure has strengthened the company's competitive position as electric vehicle adoption accelerates.
Stock has rewarded investors handsomely
Ather Energy's share price has significantly outperformed the broader market across multiple timeframes.
The stock has surged nearly 200% over the past twelve months. It has also gained approximately 35% during 2026, around 40% over the past six months and about 5% in the last month alone.
The stock has traded between a 52-week low of ₹318.60 and a high of ₹1,069, highlighting the magnitude of the rally.
The strong price appreciation, however, has naturally raised questions about whether future business growth can justify current valuations.
SBI Securities remains optimistic
Despite the sharp rally, SBI Securities continues to maintain a constructive long-term view on Ather Energy.
According to Sunny Agrawal, Head of Fundamental Research at SBI Securities, the company continues to outperform overall industry growth.
He believes Ather's expanding product portfolio, widening sales network and increasing market share provide a solid platform for sustained long-term growth.
Another important catalyst is the company's upcoming greenfield manufacturing facility in Maharashtra, which is expected to significantly increase production capacity by FY27 and help meet growing demand.
SBI Securities also believes easing commodity prices should reduce pressure on raw material costs after a challenging inflationary period.
However, the brokerage says investors should closely monitor the company's progress toward achieving EBITDA breakeven, which remains one of the most important milestones for the business.
Emkay sees long runway ahead
Emkay Global has retained its Buy rating on Ather Energy with a target price of ₹1,150, implying an upside potential of roughly 20% from current levels.
The brokerage expects India's electric two-wheeler industry to remain one of the fastest-growing automobile segments over the next several years.
Emkay forecasts Ather's revenues to grow at a compound annual growth rate of approximately 44% between FY25 and FY28. Vehicle sales are expected to rise to nearly 3.8 lakh units in FY27 before crossing 5.3 lakh units in FY28.
Although commodity prices have increased recently and the expiry of government incentives may temporarily pressure margins, Emkay believes several internal initiatives should help offset these challenges.
The company plans to implement selective price hikes, optimise manufacturing costs through value engineering and increasingly shift toward lower-cost LFP battery chemistry. The rollout of its mass-market EL platform is also expected to improve margins while expanding the company's addressable market.
Technical picture remains constructive
Technical analysts also remain positive on Ather Energy's chart structure.
According to Aakash Shah of Choice Broking, the recent sideways movement should be viewed as healthy consolidation following a strong rally rather than the beginning of a major correction.
The stock continues to trade comfortably above all its key moving averages, indicating that the broader uptrend remains intact.
Shah believes maintaining support around the ₹985-₹937 zone will be critical for preserving positive momentum.
If Ather successfully breaks above its recent high near ₹1,070 with strong volumes, the next technical target could emerge around ₹1,150.
On the downside, however, a break below ₹937 may trigger profit booking, potentially pulling the stock toward its next support near ₹860.
Industry tailwinds remain favourable
According to Emkay, India's electric two-wheeler market is entering a structural growth phase.
Industry penetration has already increased to around 10.7% during June 2026 compared with 6.6% during FY26, highlighting accelerating consumer adoption.
Ather has simultaneously strengthened its competitive position by increasing market share from 14.5% to approximately 16.5%.
Although the brokerage expects temporary production constraints before the new AURIC manufacturing facility becomes operational later this year, these are viewed as short-term challenges rather than structural concerns.
What investors should monitor
While Ather Energy continues to benefit from India's rapidly expanding EV ecosystem, future stock performance will increasingly depend on execution rather than sentiment.
Investors will closely monitor the company's ability to achieve EBITDA profitability, successfully commission its new manufacturing facility, continue gaining market share and maintain healthy margins despite evolving commodity prices and policy changes.
With the stock already delivering exceptional returns, the next phase of the investment story is likely to be driven by earnings growth rather than valuation expansion alone.
Disclaimer : The views, target prices and recommendations mentioned in this article are based on reports and opinions published by brokerage firms and market experts. They are intended solely for informational and educational purposes and should not be construed as investment advice or a recommendation to buy or sell any security. Investments in equities are subject to market risks, valuation fluctuations and company-specific developments. Investors should conduct their own research and consult a SEBI-registered investment advisor before making any investment decisions.
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