Shares of Aether Energy are up 270% in a year, but Nomura sees 22% more upside. Here’s why

Nomura raised its target price for shares of EV scooter-maker Ather Energy to Rs. 1,120 to Rs. 1,470, saying it expects to further accelerate the trend of electric two-wheeler penetration in India.

Naming Aether Energy as its top pick to ride the EV momentum, which it believes is at an inflection point, the international brokerage said the company is likely to be a key beneficiary of the trend. The latest target price of the stock on NSE was Rs. A close of 1,200 indicates an upside potential of 22.5%.

Nomura noted that Ather has been able to maintain its market share of 18% in FY26 and is currently constrained by supply. Launch of its new affordable scooter from Q3 FY27 under EL platform with new plant Rs. 100-125k segment (comprising 45% of the industry), will help address the outlook from an international brokerage, which added that the success of new motorcycle platforms in the future could further boost estimates.

“Hence, we have raised our volume estimates for Ather to 399k (+53% YoY) / 622k (+56% YoY) compared to 399k/510k earlier in FY27/28 and have projected FY29 with 824k units (+32% YoY). Despite the weak mix, our prices are averaging close to sales by 2%. Hence, we Expecting revenue growth of 54%/57%/36% in FY27F/28F/29F as fuel price risks related to the Middle-East conflict have eased, further raising our estimates.

Also read | Aether Energy said it planned a $200 million share sale in India

The international brokerage expects EBITDA to improve from negative 6% in FY27 to 5.1% in FY29 and the company should achieve PAT breakeven in FY29. “Along with strong growth, Ather’s premium positioning keeps long-term margin potential in the range of 15-20%, in our view. Therefore, we believe Ather’s premium valuation should be sustained at 5-7x EV/sales…We believe the current valuation at 4.0x FY28F is the most attractive in our view. 2Ws,” concluded Nomura.

Aether Energy share price

Aether Energy shares made a muted debut on Indian exchanges in May last year. per share on NSE at Rs. The shares listed at 328, representing a premium of 2.18% over the IPO price. After that, the stock rose 273% to today’s Rs. It made a fresh 52-week high of 1,222.10.

Also read | Shares of Aether Energy debuted at a 2.2% premium over the IPO price

Shares of Aether Energy are up 4% in a week and 16% in a month. The stock is up nearly 62% year to date in 2026 and nearly 270% in a year. The company currently has around Rs. It has a market capitalization of 46,480 crores.

(with inputs from agencies)
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