Ather Energy Ltd

Ather Energy's stock gained over 3% after reporting strong retail sales for May, with deliveries nearly doubling to 28,240 units from 14,101 units a year earlier. The surge coincided with a fuel price hike during the month, which prompted more consumers to consider electric two-wheelers as a cost-effective alternative. According to dealer feedback compiled by FADA, enquiries for EVs increased noticeably following the rise in fuel prices, highlighting how higher operating costs for conventional vehicles continue to improve the value proposition of electric mobility.

The company increased its share of India's electric two-wheeler market to 1.53% in May from 0.82% a year ago, marking one of the strongest gains in the segment. Industry-wide adoption also strengthened, with electric two-wheelers accounting for 9.25% of total two-wheeler sales compared with 6.11% a year earlier. More broadly, EV penetration across all vehicle categories crossed the 11% mark for the first time, reflecting accelerating consumer acceptance and supportive market dynamics.

India's overall two-wheeler market remained healthy, with retail sales rising 7.5% year-on-year to nearly 1.85 million units. Urban markets recorded double-digit growth of almost 12%, while rural demand also remained positive. This broad-based recovery, combined with increasing EV adoption, creates a favourable environment for manufacturers such as Ather Energy to expand both volumes and market share.

The rally also reflects confidence in Ather's long-term growth prospects. The stock has delivered exceptional returns over the past year and continues to attract positive analyst sentiment, with all tracked analysts maintaining a bullish outlook. Investors appear to be betting that continued EV penetration, favourable industry trends, and Ather's improving market position will support sustained earnings growth in the coming quarters.