Ather Energy and Zetwerk Lead Weekly Stock Rally as CarTrade Shares Slide 22%

New-age technology stocks ended the week on a largely positive note, with Ather Energy, Zetwerk and Tonbo Imaging among the biggest gainers. Strong quarterly earnings helped lift several stocks, although weaker-than-expected business growth weighed on others, particularly CarTrade.

Of the 69 new-age tech companies tracked by Inc42, 40 stocks closed higher during the week, posting gains of up to 26.8%. The remaining 29 declined, with losses reaching 22.3%.

Ather Energy topped the list after reporting its first-ever quarterly net profit. Its shares climbed 26.8% to close at ₹1,755.05, after touching an all-time high of ₹1,782.05 during the week. Zetwerk followed with an 18% rise, while Tonbo Imaging gained 15.3%.

Nykaa, Eternal and Shadowfax also touched fresh 52-week highs. On the other hand, 15 companies, including Swiggy, FirstCry, MapmyIndia and LEAP India, hit new 52-week lows.

The combined market capitalisation of the 69 companies increased by 5.7%, adding $8.62 Bn to reach $160.94 Bn. At the end of the previous week, their combined market value stood at $152.32 Bn.

## Key Developments Across Listed New-Age Tech Companies

Several companies also announced leadership changes, acquisitions and expansion plans during the week.

**ESDS CTO Resigns:** Sajiv Nair, chief technology officer and chief information officer at AI cloud provider ESDS, resigned for personal reasons. He is expected to leave the company on or before January 27, 2027.

**Nazara Moves Ahead With Acquisition Funding:** Nazara Technologies transferred $77 Mn to its UK subsidiary, Nazara UK, to finance the second tranche of its acquisition of Spanish gaming companies Bluetile Games and Bestplay Systems. Following the payment to the sellers, the total consideration paid for the acquisitions reached $303.02 Mn.

**Zelio Expands Manufacturing Capacity:** Zelio E-Mobility started commercial operations at its new manufacturing facility in Haryana. The plant adds an annual production capacity of 72,000 vehicles, including 48,000 electric two-wheelers and 24,000 electric three-wheelers. The company invested more than ₹20 Cr in the facility, with a significant portion directed towards backward integration.

**E2E Networks Boosts AI Infrastructure:** E2E Networks increased its AI infrastructure capacity by 5.4 MW, or 58.7%, taking its total capacity to approximately 14.6 MW. The expansion will include NVIDIA HGX B300 systems and other Blackwell GPUs to support AI model training, fine-tuning and enterprise inference workloads.

**GlobalBees Increases Stake in JW Brands:** FirstCry subsidiary GlobalBees Brands acquired another 14.2% stake in JW Brands for ₹18.7 Cr in cash. The transaction takes its ownership in the watch and jewellery brand owner from 75.1% to 89.3%.

JW Brands operates labels such as Joker & Witch, Bewitched and Teejh. The company reported a turnover of ₹105.5 Cr in FY26, an increase of 8.4% from ₹97.3 Cr in FY25.

## Indian Markets Recover as Foreign Investors Return

The broader Indian stock market also recovered during the week. The BSE Sensex rose 1.8% to close at 74,459.53, while the Nifty 50 gained 2% to finish at 23,053.10. Both benchmarks recovered most of the losses recorded in the previous week.

Markets started the week on a positive note before moving within a narrower range over the next two sessions. A sharp rally on Thursday, when the Sensex gained more than 900 points, helped strengthen the recovery. Buying continued into the final trading session, pushing the Nifty above the 23,000 mark.

According to Geojit research head Vinod Nair, softer crude oil prices and easing bond yields initially supported investor sentiment. However, renewed tensions in West Asia pushed crude prices higher towards the end of the week, leading to some profit booking in the broader market.

Quarterly earnings also played an important role in determining individual stock movements. Strong results from select large companies helped support market sentiment despite mixed performances across sectors.

Global monetary policy remained another factor influencing investor decisions. The US Federal Reserve kept its benchmark interest rate unchanged at 3.75%-4%, although two members supported a 25-basis-point hike. Continued caution on inflation from the US Federal Reserve, European Central Bank and Bank of Japan also reduced expectations of an early shift towards lower interest rates.

Foreign institutional investors (FIIs) returned as net buyers of Indian equities during the week, purchasing shares worth ₹6,305 Cr. This ended their 10-week selling streak. According to Pabitro Mukherjee, deputy vice president of research at Bajaj Broking, foreign investors bought Indian equities in three of the five trading sessions.

Domestic institutional investors (DIIs) continued their buying streak for the 11th consecutive week, investing ₹3,110 Cr. However, their purchases were lower than the ₹10,942 Cr recorded in the previous week.

The change in foreign investor activity comes after an extended period of selling. A JM Financial report noted that FIIs had sold approximately $64 Bn worth of Indian equities over the 24 months leading up to October 2026.

The brokerage also pointed out that attractive stock valuations alone may not be enough to bring foreign investors back in a sustained manner. Crude oil prices remain an important factor. Its analysis found that Brent crude prices above $105 per barrel were associated with FII selling, while prices below $90 generally coincided with a more favourable environment for foreign investment flows.

Looking ahead, investors are expected to monitor the upcoming US midterm elections, crude oil prices, developments in the US-Iran and Russia-Ukraine conflicts, and the ongoing quarterly earnings season.

## CarTrade Shares Fall 22.3% After Q2 Results

CarTrade was among the biggest losers of the week, with its shares declining 22.3% to close at ₹2,189.95.

The fall followed the company's September-quarter results, which missed brokerage expectations despite year-on-year growth in revenue and EBITDA.

CarTrade reported a 3% increase in consolidated net profit to ₹66 Cr in Q2 FY27. Operating revenue grew 10.2% to ₹213.1 Cr, while EBITDA rose 20% to ₹76 Cr. Its EBITDA margin also improved to 36%, compared with 33% in the corresponding quarter last year.

However, slower growth in its core consumer business raised concerns among analysts. This segment includes platforms such as CarWale, BikeWale and CarTrade.

Revenue from the consumer business increased just 4% year-on-year to ₹79.5 Cr. This was a slowdown from the 18% growth recorded in Q1 FY27 and 25% in Q4 FY26. The figure also came in 12.4% below JM Financial's estimate.

OLX India reported a stronger revenue increase of 26.4% to ₹70.2 Cr, but its performance still fell 9.7% short of the brokerage's expectations.

Traffic trends added to the concerns. Monthly unique visitors across CarTrade's consumer business declined 17.9% year-on-year and 8.5% quarter-on-quarter to approximately 43 Mn. JM Financial also highlighted the potential impact of artificial intelligence on online classifieds platforms.

Following the results, JM Financial downgraded CarTrade's rating from 'BUY' to 'ADD' and reduced its 12-month price target by 25.4%, from ₹3,550 to ₹2,650. The brokerage also lowered its FY27-FY29 revenue estimates by 3%-6% and EBITDA estimates by 8%-13%.

## Ather Energy Rallies 26.8% After Reporting First Quarterly Profit

While CarTrade struggled after its earnings announcement, Ather Energy received a strong response from investors.

The electric two-wheeler manufacturer's shares rose 26.8% during the week, closing at ₹1,755.05. The rally followed the company's first-ever quarterly net profit in Q2 FY27.

Ather reported a consolidated net profit of ₹1.3 Cr for the quarter, compared with a loss of ₹154.1 Cr in the same period last year and a loss of ₹51.1 Cr in Q1 FY27. Operating revenue grew 62.9% year-on-year to ₹1,464.2 Cr.

Its EBITDA stood at ₹74.2 Cr, with the margin improving to 4.9% from negative 9.6% a year earlier. However, other income of ₹62.7 Cr played an important role in helping the company reach profitability. Its operating revenue was still ₹61.5 Cr lower than total expenses.

The company also recorded strong growth in its business operations. Vehicle sales increased 42% year-on-year to 93,211 units, while customer enquiries rose 109% to around 10 Lakh. Pre-orders more than doubled to 1.8 Lakh.

Despite the improvement in demand, supply constraints continue to limit Ather's ability to meet potential sales, CEO Tarun Mehta said. Based on the company's internal estimates, it could be missing out on sales of approximately 20,000 vehicles every month because of these constraints.

To address the issue, Ather plans to invest ₹122 Cr in expanding its manufacturing capacity. The investment will add 2.25 Lakh units of annual capacity across its Hosur facility and the upcoming AURIC plant.

Once the expansion is completed, Ather's combined installed manufacturing capacity is expected to reach approximately 11.4 Lakh units by Q2 FY28.

## Earnings Continue to Drive Stock Performance

The week's performance highlights how quarterly results and business outlooks are shaping investor sentiment towards India's listed new-age technology companies.

Ather Energy's return to profitability and strong demand indicators helped drive its share price higher. In contrast, CarTrade's slower growth in its core consumer business triggered a sharp correction, even as its overall revenue and EBITDA continued to rise.

With foreign investors returning to the market and several companies reporting quarterly results, stock-specific developments are likely to remain an important factor for investors in the coming weeks.