Ather Energy Becomes Nomura’s Top EV Pick as the brokerage firm maintains its bullish outlook on India’s electric two-wheeler market and raises the company’s target price to Rs 1,470 from the earlier Rs 1,120. Nomura has retained its “Buy” rating on the EV manufacturer, highlighting strong growth potential driven by rising electric vehicle adoption, policy support, and upcoming product expansion.
Nomura Raises Ather Energy Target Price Amid EV Growth Opportunity
Nomura’s revised target price of Rs 1,470 indicates an upside potential of nearly 27% from current levels. The brokerage believes Ather Energy is well-positioned to benefit from the expected acceleration in India’s electric two-wheeler industry and has selected the company as its top EV sector pick.
According to Nomura, Ather Energy becomes Nomura’s Top EV Pick because of its strong EV-focused business model and growth opportunities in the expanding electric mobility market.
India’s Electric Two-Wheeler Market Expected to Witness Rapid Growth
Nomura highlighted that EV adoption in India is reaching a crucial growth phase. The brokerage expects electric two-wheeler penetration to increase from around 6.5% in FY26 to nearly 19% by FY30, revising its earlier estimate of 16%.
This growth projection represents an industry volume compound annual growth rate (CAGR) of approximately 40% between FY26 and FY30. Strong consumer demand, along with supportive EV policies from central and state governments, is expected to accelerate market expansion.
New Product Launches and Manufacturing Expansion to Boost Growth
Nomura believes Ather Energy could be a major beneficiary of this EV transition. The company has maintained a market share of around 18% in FY26 and is currently facing supply constraints due to increasing demand.
The upcoming launch of Ather’s affordable scooter based on the EL platform in Q3 FY27 is expected to strengthen its presence in the Rs 1 lakh-Rs 1.25 lakh price segment, which contributes nearly 45% of the overall electric two-wheeler market. A new manufacturing facility is also expected to support higher production capacity.
Ather Energy Profitability Outlook Improves
The brokerage expects Ather Energy’s financial performance to improve significantly in the coming years. Nomura forecasts EBITDA margins to turn positive and reach around 5.1% by FY29. The company is also expected to achieve profit after tax (PAT) breakeven during the same period.
Ather Energy Becomes Nomura’s Top EV Pick as future growth from new platforms, including a potential motorcycle launch, could provide additional upside to the company’s valuation.
Ather Energy Plans Major Capital Raise
To support retail expansion and manufacturing growth, Ather Energy is reportedly planning to raise $200 million through a qualified institutional placement (QIP) and preferential allotment.
With rising EV adoption, new product launches, and improving profitability prospects, Nomura believes Ather Energy remains one of the strongest players positioned to capture India’s fast-growing electric mobility opportunity.
Ather Energy Becomes Nomura’s Top EV Pick reflects the brokerage’s confidence in the company’s long-term growth potential as India moves toward faster electric vehicle adoption.
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