Ather Energy: Top pick to ride on EV inflection

Research evidence excerpt

Ather Energy: Top pick to ride on EV inflection

Nomura | Ather Energy 8 July 2026

Company profile

Ather is the fourth largest Electric 2-wheeler player by volume. It is a pure play EV company that sells E2Ws along with accessories and Atherstack,

its in-house developed software that powers its products. Ather was founded by Tarun Sanjay Mehta and Swapnil Babanlal Jain in 2013, with a

focus on product and technology development in India in order to build an E2W ecosystem. Ather's E2Ws consists of 7 variants across 2 product

lines - Ather 450 line and Ather Rizta line. Ather sold 155,394 units commanding a volume market share of ~11.4%. Ather is also developing and

operating India's largest E2W charging network.

Valuation Methodology

We value the stock at a target multiple of 5.5x EV/Sales to arrive at our TP of INR 1.470. The benchmark index for the stock is Nifty 50.

Risks that may impede the achievement of the target price

Downside risks: Competitive intensity: Ather faces stiff rivalry from Ola, TVS, Bajaj and Hero etc. Increased demand traction of traditional players

may dilute its market share and affect growth. Regulatory and subsidy volatility: Ather benefits from PM E-drive on almost all of its scooter. If the

same is discontinued could erode margins. Rare earth magnet supply constraint: Ather may face issues in procuring rare earth elements needed for

its motor and hence affect production and also affect margins.

ESG

Ather has adopted sustainable manufacturing alternatives which has aided in supplier packaging waste going down from 3.6 kg/vehicle to 2.3

kg/vehicle. At its Hosur plant, 13% of its current manufacturing capacity needs are powered by solar panels installed on site. Company has reduced

its air emission particles by 80%.