Ather Energy Gets 'Buy' Rating As Avendus Spark Initiates Coverage
Broad-based participation from OEMs is expected to accelerate the adoption of electric two-wheelers in India, as the industry moves beyond early adopters to mainstream buyers.
Avendus Spark has initiated coverage on Ather Energy with a ‘Buy’ rating and a target price of Rs 750, citing that India’s electric two-wheeler market entering a critical growth phase.
The brokerage noted that,
India’s e-2W Market at an Inflection Point
Premiumisation, Platform Shifts and the Rise of Software Platform Defined Two-Wheelers
Broad-Based OEM Participation Set to Accelerate e2W Adoption
Battery Risk Solutions and Ecosystem Build-Out Improve EV Adoption Readiness
Ather: A Software-Defined OEM focusing on the upgrader/premium buyer
Expanding Distribution Beyond the South to Unlock Volume Upside
Dealer Maturity and Rising Attach Rates Strengthen Ather’s ASP Outlook
Earlier this week, Ather Energy's co-founder and chief executive officer Tarun Mehta told NDTV Profit that the company seeks to 'bet on the future' and less on the premium segment, which is already driving profitability. For its expansion, Ather Energy also plans to reach 700 stores by the end of 2025-26. Sales have reached nearly Rs 1.39 lakh units.
Ather Energy roughly had 250 stores in Dec. and by the end of Q2, it had expanded to about 550 stores. "So that store expansion is what's really driving our market share gains. We've seen gains across every single zone, including south, west, central, north, and east India," he added
Last month, the electric two-wheeler maker reported a narrowing of net loss at Rs 154.1 crore in the second quarter ended September 30, 2025, riding on higher revenue. The company had posted a net loss of Rs 197.2 crore in the corresponding quarter last fiscal.
Revenue from operations in the second quarter stood at Rs 898.9 crore as against Rs 583.5 crore in the year-ago period. Meanwhile, total expenses in the quarter under review were higher at Rs 1,094.8 crore compared to Rs 796.1 crore in the same period a year ago.
