Ather Energy shares hit 52-week high on FY26 Q4

Stock jumps to a fresh 52-week high

Shares of Ather Energy were in high demand on Tuesday, rising 5.17% to hit a 52-week high of ₹982.35 on the NSE. The move followed the company’s update that losses narrowed in the fourth quarter of FY26. The company attributed the improvement to strong volume growth, better unit economics, and operating leverage. The rally also drew support from positive brokerage commentary during the session.

What the company said drove Q4 FY26 improvement

Ather’s Q4 FY26 performance was described as being supported by scale benefits and a better cost structure. The company pointed to improved unit economics, which typically reflects a mix of product-cost actions and better gross profit per vehicle. Operating leverage also featured as a key factor, suggesting fixed costs were spread over a higher base of deliveries. While the update highlighted narrowing losses, the most specific profitability data in the available information is on EBITDA margin.

Revenue trend: sequential growth highlighted

The company said revenue increased 23% sequentially from ₹953.6 crore. No absolute revenue number for the latest quarter was provided in the supplied text beyond the sequential growth rate and base figure. Still, the sequential rise indicates a stronger exit quarter compared with Q3 FY26, consistent with the reported record sales volumes in the quarter.

Record quarterly volumes and market share gains

Ather reported record quarterly sales of 83,418 units, a 76% year-on-year increase. For the full year, volumes rose 69% to 2,62,942 units. This helped Ather expand its market share to 18.6% for the year, according to the provided information. Management also indicated that electric two-wheeler demand is becoming more mainstream, with tier-3 markets growing faster than tier-1 markets.

Margins: EBITDA loss narrows versus prior quarters

Brokerage commentary cited that EBITDA loss narrowed to -5.9%. This was compared against -7.6% in Q3 and -14.7% in Q2, indicating an improving trend over recent quarters. The same commentary linked the margin improvement to scale-led benefits and operating leverage. Brokerages also connected the margin trajectory to upcoming platform-driven cost actions.

Nomura sticks to ‘Buy’ and flags supply constraints

Nomura retained a ‘Buy’ rating on Ather Energy with a target price of ₹1,120, based on a 6x EV/sales valuation framework. The brokerage said this implied an upside of 12.29% from the day’s intraday high levels. Nomura also called Ather its preferred long-term pick in the electric two-wheeler segment. Its rationale included expectations of a strong inflection in EV penetration and a view that demand is currently higher than supply.

EL platform: expanding TAM and pushing into the mass segment

Nomura expects the upcoming EL platform to expand total addressable market (TAM) by about 50% and lower costs meaningfully. Separately, management commentary indicated the EL platform is expected to launch during the CY26 festive season. It is positioned as a way for Ather to target the mass segment, identified in the supplied text as the ₹0.1 to ₹0.13 million price range, where the company currently lacks presence. The EL platform is also repeatedly described as a driver of scaling up and operating leverage.

Policy triggers in focus: subsidy and PLI

Nomura highlighted two key upside triggers tied to policy. The first is an extension of the ₹5,000 subsidy beyond July 2026. The second is inclusion of Ather Energy in the PLI scheme. These items were presented as potential catalysts, but no confirmation was provided in the supplied text on whether any policy extension or inclusion decision has been taken.

Volume outlook and EBITDA margin estimates from Nomura

Nomura said it has largely maintained its volume estimates at 399,000 units for FY27F, representing 53% year-on-year growth, and 509,000 units for FY28F, representing 28% year-on-year growth. It pegged EBITDA margins at -5.5% for FY27F and +0.9% for FY28F, with a sharper improvement expected by FY29F. These estimates align with the broader brokerage theme that scale and platform-driven cost reductions could improve profitability.

Emkay’s stance: ‘Buy’, volume ramp and cost control

The supplied text states that Emkay Global retained a ‘Buy’ rating, with expectations of robust volume growth, improving margins through cost control, and upcoming capacity expansion. In another brokerage note included in the provided material, Emkay Global is also described as having retained its ‘Buy’ rating with a revised target price of ₹1,000 (from ₹925 earlier). The same material notes an expectation that Ather can achieve EBITDA and PAT breakeven in H2FY27. These details were presented as part of earlier market commentary around quarterly results.

Key numbers at a glance

Why this matters for investors tracking EV two-wheelers

The day’s move shows how closely EV two-wheeler stocks are trading to operating metrics like volumes, market share, and margin trajectory. The record quarterly deliveries and rising market share provide a measurable base for the “scale and leverage” thesis highlighted by both the company and brokerages. The policy references, including the ₹5,000 subsidy timeline and potential PLI inclusion, also underline how regulatory and incentive structures can influence near-term demand and profitability assumptions.

What to watch next

Key milestones mentioned in the supplied information include the EL platform launch during the CY26 festive season and potential capacity expansion referenced by Emkay. Investors are also likely to track whether the ₹5,000 subsidy is extended beyond July 2026 and any updates on PLI eligibility. Quarterly updates on margin movement, particularly against the cited -5.9% EBITDA loss level and broker forecasts for FY27F and FY28F, are likely to remain central to the stock narrative.