Avendus Spark has initiated coverage on electric two-wheeler manufacturer Ather Energy with a 'Buy' rating and a target price of Rs 750 per share, citing the company's strong positioning in India's burgeoning EV market as it shifts toward mainstream adoption. The broking's optimistic outlook comes at a pivotal moment for the sector, where broad-based participation from original equipment manufacturers (OEMs) is expected to propel electric two-wheeler (e-2W) penetration beyond early adopters to everyday buyers, fuelled by premiumisation trends, advanced software-defined vehicles, and robust ecosystem developments.
Ather Energy, known for its premium scooters like the 450X and Rizta models, is highlighted for its focus on upgraders and affluent consumers, differentiating it from mass-market competitors. The firm has aggressively expanded its retail footprint, growing from around 250 stores in December 2024 to approximately 550 by the end of the second quarter of fiscal 2026, with plans to reach 700 outlets by year-end. This pan-India push has driven sales to nearly 1.39 lakh units in the period, boosting market share across southern, western, central, northern, and eastern regions while enhancing average selling prices through better dealer maturity and higher attach rates for accessories.
Financially, Ather demonstrated resilience in the quarter ended September 30, 2025, narrowing its net loss to Rs 154.1 crore from Rs 197.2 crore a year earlier, supported by a 54% revenue surge to Rs 898.9 crore from Rs 583.5 crore. Total expenses climbed to Rs 1,094.8 crore amid scaling operations, but the broking views this as a strategic investment yielding long-term gains, particularly as battery technology risks diminish and distribution efficiencies improve.
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The report underscores India's e-2W industry inflection point, projecting accelerated growth through OEM collaborations and innovations like platform shifts that reduce costs and enhance user experience. For Ather, this positions it for significant upside, with Avendus anticipating volume expansion and sustained premium pricing to drive profitability in the coming years.
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