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On Monday, Kotak Securities analyst Abhijit Akella updated the rating on Aether Industries (NS:AETH) Ltd (AETHER:IN), lifting it from 'Reduce' to 'Add' and increasing the price target to INR890 from INR810. The revision follows Aether's third-quarter financial results for fiscal year 2025, which surpassed Kotak's forecasts in terms of revenue and profit margins.
Aether Industries' stock rating upgrade is attributed to the company's stronger-than-expected performance and the positive progression of significant contracts. Specifically, the Baker Hughes (NASDAQ:BKR) contract, which is anticipated to contribute approximately INR 3 billion in revenues by fiscal year 2026, is advancing more rapidly than Kotak initially projected.
In light of these developments, Kotak has adjusted its earnings per share (EPS) estimates for fiscal years 2026-27 upward by 10-11%. The firm also revised its fair value (FV) for March 2026 to INR890, marking an increase from the previous target of INR810. The upgrade to an 'Add' recommendation comes after a recent downturn in Aether's stock price, which seems to have provided a more favorable entry point.
The analyst's statement highlighted that Aether's third-quarter results for fiscal year 2025 exceeded expectations, particularly in revenue and margins. This performance has been a key factor in the revised outlook and rating upgrade for the company.
Kotak's new price target and stock rating for Aether Industries reflect the company's current financial trajectory and the potential for revenue growth from strategic contracts in the near future. The upgrade suggests a positive outlook for Aether's stock performance going forward.
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