Ather Energy Shares Jump 5% and Extend Rally to 20% in Two Days After Q2 Results
Ather Energy shares rose another 5% on Tuesday. The move came after the electric two-wheeler maker reported its first quarterly profit. In just two trading sessions, the stock has gained about 20%. That is a sharp move for any stock, and it has caught the attention of retail and institutional investors alike.
The trigger was the company’s Q2 FY27 results. Ather posted a net profit of Rs 1.26 crore. The number looks small in absolute terms. But the meaning behind it is big. This is the first time the company has turned a profit in a quarter since it listed. For a young electric vehicle maker, crossing that line is a major milestone.
What the Q2 Numbers Show
The headline number is the profit, but the revenue growth matters just as much. Revenue jumped 63% year-on-year to Rs 1,464 crore. That kind of growth shows strong demand for Ather’s electric scooters. It also shows that the company is selling more vehicles at better price points.
Even more important, EBITDA turned positive. EBITDA is a key measure of operating profit. It looks at earnings before interest, taxes, depreciation and amortisation. When EBITDA is positive, it means the core business is starting to pay for itself. Earlier, Ather was losing money on its day-to-day operations. Now that has changed.
Why the Profit Matters So Much
Most electric vehicle startups go through a long phase of losses. They spend heavily on factories, research, marketing and charging networks. Profits usually come much later. So when a company reports its first profit, the market treats it as proof that the business model works.
For Ather, the path to profit came from several things. Sales volumes grew. The product mix improved. Costs were controlled better. And the company likely benefited from lower battery prices and better use of its manufacturing capacity. Each of these factors adds up.
Nomura Raises Target Price to Rs 2,070
Brokerage firm Nomura gave the stock a strong vote of confidence. It raised its target price to Rs 2,070 and kept its Buy rating. A target price is what analysts think the stock could be worth in the coming months. When a respected firm raises its target, it often brings fresh buyers into the stock.
Nomura’s move likely played a role in Tuesday’s 5% jump. Analysts often update their models after results. A positive surprise on profit and revenue can lead to higher earnings estimates for future quarters. That, in turn, pushes target prices up.
Can the Rally Continue?
That is the big question on every investor’s mind. There are reasons to be optimistic. The electric two-wheeler market in India is growing fast. Government policies still support clean mobility. Fuel prices remain high, which makes electric scooters more attractive. Ather has a strong brand and a growing network of experience centres and fast-charging points.
But there are risks too. Competition is intense. Several large players are pushing hard into the electric scooter space. Price wars could pressure margins. Raw material costs, especially for batteries, can swing. And a stock that has risen 20% in two days may see some profit-booking in the short term.
What Investors Should Watch
The next few quarters will be critical. Investors should track whether Ather can keep EBITDA positive. They should watch revenue growth and vehicle sales volumes. They should also look at how the company manages costs as it scales up. If profit becomes a steady trend rather than a one-quarter event, the stock could hold its gains.
In short, Ather’s Q2 results mark a turning point. The company has shown it can grow fast and still make money. Whether the share rally lasts will depend on how well it repeats this performance in the coming quarters.
