Nomura backs Ather Energy on accelerating EV adoption momentum

Nomura has reaffirmed its 'Buy' rating on Ather Energy, signalling continued confidence in the electric two-wheeler maker's growth trajectory. The upward revision of the target price reflects the brokerage's assessment that accelerating EV adoption in India presents substantial opportunities for the company to expand its market presence and operational scale.

The rating underscores expectations that Ather Energy will benefit from structural shifts in consumer preferences and policy support favouring electric vehicles in the two-wheeler segment. India's push towards electrification of transportation, coupled with improving charging infrastructure and battery technology, has created a favourable environment for EV manufacturers.

Ather Energy has positioned itself as a leading player in the premium electric two-wheeler segment, and the company's expansion plans align with the broader market tailwinds. Nomura's maintained conviction in the stock reflects expectations of sustained revenue growth and improving unit economics as the company scales operations.

The price target revision comes as investors closely monitor the EV sector's evolution in India, with several companies vying for market share in the growing segment. Industry analysts expect the transition from conventional to electric two-wheelers to accelerate further, driven by cost competitiveness and consumer awareness.