Nomura on Ather Energy: Konarc Launch Cements Technology Leadership
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Nomura maintains Buy on Ather Energy and its INR1,714 target price, based on 5.5x average FY28-29F EV/sales (midpoint of a 5-7x expected band), against the August 28, 2026 close of INR1,616—6.1% upside and its top two-wheeler pick. Konarc, the first scooter on the new EL platform, starts at INR99,000 ex-showroom in three variants with 2.1/2.7/3.5kWh batteries and 100/125/161km IDC range; deliveries begin September 2026, with a 200km version and a Z variant to follow. Nomura views the launch as Ather's entry into the mass-market electric two-wheeler segment, doubling its addressable market, and models Konarc volumes of 24,000 units in FY27F and 240,000 in FY28F. Total volumes are forecast to grow 49%/80%/28% over FY27-29F, with EBITDA margins of -5.7%/+3.8%/+7.2% turning EBITDA and PAT positive in FY28F; revenue rises from INR36.72bn in FY26 to INR133.53bn in FY29F as gross margin climbs from 19.5% (FY27F) to 24.0%. Management says the EL platform is about 10% cheaper than Rizta with 10-15% BOM improvement, and the dealer network doubles from 350 to 700. Upside risks include policy support and PLI inclusion; downside risks are competition, subsidy changes and rare-earth magnet supply.