Ather Energy share price in focus: The brokerage firm, Nirmal Bang Institutional Research, has initiated a buy call on Ather Energy Ltd, a two-wheeler maker and a constituent of the BSE 500. Let's go through the reasons behind the rating, and also check the company's Q4 performance.

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Ather Energy share price in focus: Nirmal Bang initiates buy call with latest target price - Here's why

Nirmal Bang has initiated coverage on Ather Energy Ltd with a BUY rating, setting a target price of Rs 1,210 against the current market price (CMP) of Rs 964, implying a potential upside of 26 per cent. Here's why:

Technology-led EV player with strong growth visibility: Ather is one of India's leading pure-play E2W players with 18.6 per cent retail market share (Q4FY26), backed by strong R&D, a differentiated premium product portfolio, software capabilities, and charging infrastructure.

The company is well-positioned to benefit from rising EV penetration, supported by strong execution and an expanding distribution network.

Distribution expansion to support growth: Ather has rapidly scaled its retail footprint to over 700 stores (3.2x growth over the last two years), strengthening its presence beyond its core South Indian markets and improving growth visibility across underpenetrated regions.

Multiple growth drivers in place: Ather is entering its next growth phase, driven by the success of Rizta, which has accelerated market share gains, alongside the upcoming EL and Zenith platforms.

The company is also expanding capacity through the new AURIC facility. These initiatives are expected to materially expand Ather's addressable market and support a 42.5 per cent volume CAGR over FY26-28E.

Scale benefits to drive profitability: The brokerage expects Ather to achieve EBITDA breakeven by FY28E, driven by operating leverage, BOM optimisation, LFP battery adoption, EL platform-led cost efficiencies, and a growing contribution from high-margin non-vehicle revenues.

Additionally, software revenues (over 50% EBITDA margins with more than 90% attach rates), E-bike TAM expansion, exports, and Insurance optionality provide further re-rating potential.

Ather Energy Q4 results

Ather Energy reported a narrowed loss of Rs 100 crore in Q4FY26, down from Rs 234 crore in the same quarter last year, indicating improved financial performance. Revenue surged 73.8 per cent year-on-year to Rs 1,175 crore from Rs 676 crore, reflecting strong growth in sales and operating momentum during the quarter.