Ather Energy Reports Rs 234.4 Crore Loss in Q4 Amid Improved Gross Margins

Ather Energy, a manufacturer of electric two-wheelers, reported a reduction in losses for the March quarter. Losses decreased by 18% to Rs 234.40 crore, compared to Rs 283.30 crore in the same period last year. This improvement was attributed to better gross margins. Revenue from operations increased by 29.5%, reaching Rs 676.1 crore from Rs 523.4 crore a year earlier.

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Financial Performance and Market Expansion

For the fiscal year 2024-25, Ather Energy recorded a net loss of Rs 812 crore, down from Rs 1,059.70 crore the previous year. The company sold 47,411 two-wheelers during the March quarter, marking a 35% increase from the 35,244 units sold in the same quarter of FY24. The adjusted gross margin improved by 900 basis points, while EBITDA saw an improvement of 1,900 basis points.

The company's Chief Financial Officer, Sohil Parekh, noted robust volumes and significant market share gains of 13.3%, especially in southern regions and new markets following the launch of Rizta scooters. "Together, this reflects not just revenue growth but healthy discipline and strong fundamentals," Parekh stated.

Product Portfolio and Retail Growth

Ather's product lineup includes the performance-oriented 450 series and family-friendly Rizta scooters. The company expanded its retail presence by 32% during the March quarter of the previous fiscal year, ending with 351 experience centres across India. This expansion facilitated deeper market penetration in North and West India.

Rizta scooters have been well-received since deliveries began in Q2 FY25, now accounting for 57% of Ather's sales volume at fiscal year's end. This model has significantly contributed to growth in new regions like Delhi, Rajasthan, Maharashtra, and Gujarat.

Strategic Outlook and Future Plans

Ravneet Phokela, Chief Business Officer at Ather Energy, expressed optimism for FY26 based on recent growth trends driven by the Rizta model since July last year. "FY25 has been a year of robust growth," said Tarun Mehta, Executive Director and CEO at Ather Energy. He highlighted a 42% increase in volume and improved margins due to investments in engineering and R&D.

Adjusted gross margins doubled with an increase of approximately 1,000 basis points over the previous year. This helped reduce EBITDA losses by about 1,300 basis points. Software sales also performed well, with 88% of customers opting for the Pro Pack in FY25.

Ather Energy's shares rose by 3.29%, closing at Rs 309.55 per share on BSE on Monday. The company made its stock market debut on May 6 following its Rs 2,981-crore IPO.

With inputs from PTI