Ather Energy's Market Cap Touches Rs 65,000 Crore, 3.5 Times Ola Electric's

New Delhi, Oct 29 : Ather Energy and Ola Electric, two major players in India's electric two-wheeler market, are witnessing contrasting fortunes on the stock market, with Ather Energy's market capitalisation touching approximately Rs 65,000 crore, nearly 3.5 times that of its rival Ola Electric.

The widening valuation gap reflects changing investor sentiment towards the two electric vehicle manufacturers, driven by differences in their financial performance, sales growth and business prospects.

Ather Energy shares have surged around 20 per cent over the past week after the Bengaluru-based electric scooter manufacturer reported its first-ever net profit in the September quarter. The rally has taken its share price to around Rs 1,600, compared with its listing price of Rs 326 on the BSE in May 2025. The stock is now trading at nearly five times its initial listing level.

According to data from the government's Vahan vehicle-registration portal, Ather sold close to 28,000 electric scooters in September 2026, against approximately 12,600 units during the same month in 2024, registering growth of nearly 120 per cent over the two-year period.

The increase in sales, coupled with its latest profitability milestone, has strengthened investor confidence in the company. However, investors will closely monitor whether Ather can sustain its growth and profitability amid intense competition, pricing pressures and changing consumer preferences.

Key factors likely to influence its future performance include profit margins, operating expenses, cash flows and the ability to expand sales without excessive dependence on discounts and promotional offers.

In contrast, Ola Electric has witnessed a significant decline in its market valuation since its stock market debut in August 2024. Its market capitalisation, which briefly touched around Rs 64,000 crore following its listing, has fallen to approximately Rs 16,000 crore in October 2026. Its share price is also trading more than 50 per cent below its initial public offering (IPO) price.

Ola Electric's sales performance has weakened compared with its earlier expansion phase. Vahan data shows that the company sold around 24,500 electric scooters in September 2024, while registrations declined to fewer than 12,000 units in September 2026.

Although the company has reported marginal growth in scooter sales, volumes remain considerably below the more than 40,000 units it was dispatching in early 2024.

The slowdown in sales momentum has raised concerns among investors about Ola Electric's ability to regain market share and convert its manufacturing scale into sustainable financial performance.

The contrasting market performance of the two companies highlights the growing importance of profitability, consistent sales growth and operational efficiency in determining investor confidence in India's rapidly evolving electric vehicle industry.