3 EV Stocks to Watch as Delhi-NCR Eyes Higher Electric Two-Wheeler Adoption

#2 Ather Energy

Next on our list is Ather Energy's stock.

Ather Energy is an Indian electric vehicle (EV) company that designs and manufactures electric scooters.

To scale up, the company is expanding big with its Factory 3.0 in Chhatrapati Sambhajinagar. This is the largest factory to date, initially planned for a total capacity of 1 m, with 0.5 m going live in Phase 1 itself.

The company expects Phase 1 to commence by the end of this calendar year, Q3 FY27. This plant, in addition to driving the bulk of the company's growth in the coming quarters, will improve unit economics by enabling greater vertical integration than Ather has today, with battery pack assembly, transmission assembly, painting, electronics assembly, and CED coating all coming in-house.

Financial Highlights of Ather Energy

On the financial front, the company reported revenues of Rs 11,747 m for Q4FY26 vs Rs 6,761 m YoY. The net loss dropped to Rs -1,002 m vs Rs -2,344 m YoY.

Moving ahead, management has recently acknowledged the possibility of margin pressures given how commodity prices have moved.

"Expect a short-term impact on margins. But the silver lining in all this cost pressure is that commodities will eventually find their natural level once again," management said in a recent conference call.

Overall, Ather Energy is well-positioned for India's accelerating adoption of electric two-wheelers, supported by expanding charging infrastructure, premium product offerings, and software-led differentiation.

The company is widening its retail footprint, launching new models, and entering new market segments to boost volumes. Government incentives and stricter emission norms could further support demand.

However, intense competition from rivals, pricing pressure, execution risks, and the path to sustained profitability remain key factors investors should monitor.

To know more, check the Ather Energy fact sheet and latest quarterly results.

#3 TVS Motors

Next on the list is TVS Motors' stock.

TVS Motor Company is not a pure-play electric two-wheeler company. TVS is a diversified two- and three-wheeler manufacturer. Its business includes Petrol motorcycles, Petrol scooters, Mopeds, Three-wheelers, and Electric scooters (TVS iQube).

According to reports, the TVS iQube remains the highest-selling electric two-wheeler in India. This positions the company well for sustained demand as Delhi authorities push for higher two-wheeler adoption.

Moving forward, the company has been rapidly expanding its EV product line. It has recently launched TVS iQube S with 4.7 kilowatt.

The management recently stated that the penetration in Q4FY26 in the EV segment was almost 7.8% vis-a-vis 7.1%. For FY26 as a whole, the penetration has moved from 6.2% to 6.6%.

The management believes that the EV 2-wheeler segment will continue to gain market share and that this momentum will persist this year.

Moving ahead, TVS Motors is looking to increase overall capacity by another 1.5 m to reach 8.3 m, as demand remains robust.

Financial Highlights of TVS Motors

The company is investing in electric mobility, connected technologies, and global partnerships to strengthen its competitive position.

Should You Consider Stocks from the Electric Two-Wheeler Space?

India's electric two-wheeler market offers strong long-term growth potential, driven by rising EV adoption, supportive government policies, improving charging infrastructure, and increasing consumer acceptance.

However, investors should remain mindful of intense competition, rising commodity pressure, evolving regulations, and profitability challenges before making investment decisions.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...