Ather Energy Ltd (ATHERENE IN): Buy: 1QFY27 – Positive margins outperformance

Research evidence excerpt

Ather Energy Ltd (ATHERENE IN): Buy: 1QFY27 – Positive margins outperformance

-term investment thesis.

52-WEEK PRICE (INR)

EL platform launch and capacity expansion to support growth: Ather is currently 1600.00

unable to meet 13–15k units/month of retail demand due to capacity constraints. AURIC

Phase 1 will be dedicated to the EL platform, providing an estimated 42k units of monthly 925.00

capacity, although full ramp-up is expected only by end-4Q27 or early-1Q28. If demand 250.00

exceeds this level, Ather could reallocate an additional 19k units of monthly 08/25 Target price: 02/261450.00 08/26

capacity at Hosur to the EL platform; however, this would likely cannibalize Rizta volumes. High: 1296.70 Low: 385.45 Current: 1272.70

Separately, the Stack attachment rate may moderate to around 75%, which could Source: LSEG IBES, HSBC estimates

put average selling prices (ASP) under pressure.

Yogesh Aggarwal*

1QFY27 details: Wholesale volumes were up c81% y-o-y (flat q-o-q) to 83.2k, while Head of Research, India

HSBC Securities and Capital Markets (India) Private

retail was c88.7k units. Dealer inventory decreased from 14 days to three days q-o-q. Limited

Net revenue was INR12.2bn, up c89% y-o-y. EBITDA losses (ex-other income) were yogeshaggarwal@hsbc.co.in

+91 22 2268 1246

INR333mn vs INR696mn in 4QFY26. ASP increased by c4% q-o-q to INR146.3k led

by INR5.6k price hike on vehicles and INR2.2k on Ather Stack Pro in 1Q. Gross VipulAnalyst,Agrawal*,India AutomotiveCFA

margin declined by 300bps q-o-q to 22.4% due to adverse commodity cost impact of HSBC Securities and Capital Markets (India) Private

Limited

560bps but was offset by price hikes and operating leverage. Other expenses reduced vipul.agrawal@hsbc.co.in

by 540bps q-o-q on lower sales and marketing expenses.