JPMorgan Bullish on Ather Energy, Sees 27% Upside Despite 255% Rally in One Year

JPMorgan has initiated coverage of Ather Energy with an ‘Overweight’ rating and says the electric two-wheeler manufacturer has much growth potential despite delivering multibagger returns over the past year.

https://www.ndtvprofit.com/

A target price of ₹1,570 per share is suggested by the brokerage, which is a 27% upside from the current market.

Stock Delivers Multibagger Returns

Ather Energy is one of India's best-performing EV stocks, and shares have rallied over 255% in the past 12 months. From a low of ₹347.30 to a record high of ₹1,296.70, the stock price was up in the first place, and investors were betting on the growth of electric mobility in India.

But even so, JPMorgan forecasts that the company will continue to gain from the electric vehicle boom and not just on the stock market in the foreseeable future.

Strong EV Growth Outlook

JPMorgan describes Ather Energy as a “pure play on the fastest-growing segment of the Indian two-wheeler market.”

The brokerage highlighted Ather's integrated business model, which includes:

Electric scooter manufacturing  
Battery technology  
Proprietary software ecosystem  
Fast-charging infrastructure  

From JPMorgan's point of view, this end-to-end ecosystem is an advantage over many competitors in terms of the ecosystem.

EV Penetration Expected to Rise

The brokerage expects electric two-wheelers to account for 20% of India's two-wheeler market by FY31, up from about 7% in FY26.

Several factors are expected to help in this growth, and this growth can be expected to be supported by:

Lower total ownership costs  
Increasing consumer acceptance  
Improved charging infrastructure  
Industry consolidation  

JPMorgan estimates that India’s electric two-wheeler industry could grow at a 32% compound annual growth rate (CAGR) during this period, much outpacing the overall two-wheeler market.

Market Share Likely to Increase

JPMorgan expects Ather Energy to perform better than the competition in the industry, growing its market share from 17% in FY26 to 23% of the market by FY31.

Hence, the brokerage expects that the growth will be supported by:

• Early launch of the company's new "EL" platform.
• Production of the business’s annual production capacity of over 1.4 million units.
• More innovative electric scooter technology to be developed in premium electric scooters.

As well as the software-driven features and premium product positioning, the company is expected to benefit from its software-driven features and premium product positioning.

Profitability Could Improve

In addition to revenue growth, JPMorgan forecasts a very significant improvement in Ather's profitability.

According to the brokerage:

• EBITDA break-even could be achieved by FY28.
• Double-digit EBITDA margins may be reached by FY31.

For the sake of production volumes, operating leverage, and satisfactory gross margins.

Valuation and Risks

Using a valuation of 35 times FY31 EV/EBITDA, JPMorgan arrived at its September 2027 target price of ₹1,570.

But the brokerage also warned investors of the risks that could affect future performance, including:

• Slower-than-expected electric vehicle adoption.
• Possible expansion of GST on EVs.
• Price competition is rising.
• Rising battery raw materials costs.
• Production delays.
• Execution risks related to the launch of the new EL platform.

But JPMorgan remains optimistic that Ather Energy is in a position to take advantage of India’s rapidly growing electric mobility market and is one of the most interesting EV companies to follow in the coming years.