Ather Energy shares jump 5% after Q4 net loss narrows to Rs 100 crore. Here's why Nomura sees sharp upside

Shares of EV-maker Ather Energy rallied as much as 5.2% to their day's high of Rs 982.55 on the BSE on Tuesday after it reported a net loss of Rs 100 crore for the March quarter of FY26, a sharp improvement of 57% compared with a loss of Rs 234 crore in the same period last year.

Revenue from operations rose strongly to Rs 1,175 crore, up 74% from Rs 676 crore in the corresponding quarter of the previous financial year, the company said in a regulatory filing. The company also saw a significant reduction in operating losses. EBITDA loss narrowed to Rs 70 crore from Rs 173 crore a year ago, a decline of 60%.

Total expenses during the quarter increased to Rs 1,314 crore, rising 42.5% from Rs 922 crore reported in the same period last year.


For the quarter ended March 31, 2026, the company delivered 83,418 units, marking a 76% year-on-year increase. This growth was supported by an expansion in its retail footprint to 700 Experience Centres, including 100 additions during the quarter.

EBITDA margin stood at (2.5%) in Q4 FY26, improving by about 2,080 basis points year-on-year. The company attributed this to higher volumes, operating leverage and improved unit economics.

For the full financial year ended March 31, 2026, Ather Energy reported total income of Rs 3,823 crore, up 66% year-on-year, driven by strong volume growth. Non-vehicle revenue, which includes software subscriptions, charging, accessories, spares and services, contributed 13% to total income in FY26, reflecting a broader ecosystem play.

Nomura has maintained a Buy rating on Ather Energy with a target price of Rs 1,120, implying around 20% upside. The brokerage said Ather remains its preferred pick in the electric two-wheeler space, backed by a likely inflection in EV penetration. It believes underlying demand is already stronger than supply, with any rise in fuel prices acting as an additional catalyst.

International brokerage firm Nomura expects the upcoming EL platform to expand the total addressable market by around 50% while also helping reduce costs. It added that improving scale and operating leverage should support a meaningful turnaround in margins over time. Potential entry into motorcycles provides further long-term optionality.

Key upside triggers include an extension of the Rs 5,000 subsidy beyond July 2026 and possible inclusion of the company under the PLI scheme. The launch of Rizta helped open up a larger addressable market, which also supported the expansion of its retail footprint. This, in turn, translated into robust volume growth and improved unit economics.

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