Asia Pacific Equity Research: India First To Market

Research evidence excerpt

Asia Pacific Equity Research: India First To Market

Asia Pacific Equity Research

India First to Market 31 July 2026

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Init | Ather Energy (Amyn Pirani) (ATHERENE IN, OW)

A pure play on the fastest growing category in Indian 2Ws; initiate at OW

We initiate coverage on Ather Energy with an OW rating and Sep-27 price target of Rs 1,570 (27% upside). Ather is a pure play

Indian EV 2W OEM with a market-share of 17% (top-3). It sells 2Ws as well as software, charging infrastructure and smart

accessories with in-house manufacturing of the vehicle and battery pack. Our OW is premised on: 1) EV 2W industry CAGR

(FY26-31) of 32% driven by penetration of 20% by FY31 (vs. 7% in FY26), 2) Ather’s market-share expansion from 17% in

FY26 to 23% by FY31 on the back of new platforms and a tripling of capacity, 3) inflection in profitability with EBITDA break-

even by FY28 and near-ICE level margins by FY31, and 4) Ather’s premium positioning and ability to monetise its software

features (gross margins already > ICE peers). The stock has doubled in the past 6M (vs the Nifty -4%) due to an acceleration in

EV penetration and an improvement in Ather’s market-share/margins. There could be some volatility in the short-term as 1Q

earnings (early August) woud be impacted by commodity inflation. The launch of the “EL”platform (late August) and ramp-up of

capacity (3QFY27) should be the next positive catalysts.

India Oil and Gas (Sanjay Mookim)

June oil data – not out of the woods yet

India's crude imports remained down YoY in June (and likely in July), with Russian oil accounting for close to half of purchases.

Local consumption of all oil products, ex-petrol/diesel, is weak as well. LPG consumption is down 14% YoY. Yet, total primary