Ather Energy: first positive EBITDA; Factory 3.0 is the gate

Ather Energy’s Q1 FY27 revenue rose 89 percent to Rs 1,217 crore, and the company posted a positive EBITDA of Rs 9 crore, against a loss of Rs 106 crore a year earlier. The net loss narrowed 71 percent to Rs 51 crore. I could not find a Q2 FY27 result in any source I checked. Q1 FY27 (as reported in early August): Revenue: Rs 1,216.9 crore, up 89 percent YoY Scooters sold: 83,173, up 81 percent YoY Net loss: Rs 51.1 crore, from Rs 178.2 crore a year earlier EBITDA: Rs 9 crore positive, a margin of about 1 percent Ather Energy [Y][***** trades at Rs 1,413.39 at 2:12 PM IST today on StockGro, down 0.8 percent from Rs 1,424.83. The stock is about 18 percent below its Rs 1,729.58 high. The company is still loss-making, so the P/E of negative 138 is not a usable valuation. My view: hold, not a fresh entry. Demand is ahead of capacity, and the first positive EBITDA is real. But one positive quarter does not settle the profit question, and the stock already jumped 14 percent on the Q1 print. Fresh money waits for Factory 3.0 to start commercial production, which management places in Q3 FY27, and for Q2 FY27 EBITDA to stay positive. Without both, no fresh money. My exit is a close below Rs 1,272.70, the 3 August close before the Q1 result. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.