Electric two-wheeler manufacturer Ather Energy has reported a net loss of Rs 1.78 billion for the first quarter of fiscal year 2025, even as its operational revenue climbed to Rs 6.45 billion. The results reflect the company’s ongoing efforts to scale operations and capture market share in India’s competitive EV landscape, while still grappling with high input costs and capital expenditures.
The Bengaluru-based firm, backed by Hero MotoCorp and Tiger Global, continues to invest heavily in product development, retail expansion, and charging infrastructure, positioning itself for long-term growth despite near-term financial pressures.
Key Highlights From the Q1 Earnings Report
- Net loss for Q1 FY25 stood at Rs 1.78 billion
- Revenue from operations reached Rs 6.45 billion, marking a significant year-on-year increase
- Gross margins improved by 900 basis points, indicating better cost efficiencies
- EBITDA losses narrowed, with a 1,900 basis point improvement over the previous year
Revenue Growth and Market Expansion
1. Strong Sales Momentum
Ather Energy sold 47,411 electric scooters during the March quarter, up from 35,244 units in the same period last year. This 35 percent growth was driven by strong demand for the newly launched Rizta family scooter and continued traction for the performance-oriented 450 series.
2. Retail Footprint Expansion
The company expanded its retail presence by 32 percent during the quarter, ending with 351 experience centers across India. This helped deepen market penetration, especially in North and West India, where the Rizta model has gained rapid acceptance.
3. Charging Infrastructure
Ather continues to scale its Ather Grid network, now comprising over 1,800 fast-charging points nationwide. This infrastructure build-out supports customer convenience and enhances brand stickiness.
Operational Challenges and Loss Drivers
- Despite revenue growth, high costs related to battery procurement, R&D, and retail expansion contributed to the Rs 1.78 billion loss
- Capital expenditure remains elevated due to investments in manufacturing capacity and technology development
- Price parity with internal combustion engine vehicles remains a challenge, limiting margin expansion
Financial Discipline and Margin Improvements
- Adjusted gross margin for Q1 FY25 stood at 18 percent, up from 9 percent in the same quarter last year
- EBITDA margin improved to negative 23 percent, compared to negative 42 percent in Q1 FY24
- These improvements reflect better scale efficiencies, increased localization of components, and disciplined cost management
Strategic Outlook and Future Plans
Ather Energy’s management remains focused on achieving break-even within the next 12 to 18 months. Key initiatives include:
- Diversifying the product portfolio to include more mass-market offerings
- Strengthening partnerships for supply chain and financing solutions
- Enhancing digital capabilities for customer engagement and service delivery
The company is also exploring export opportunities and aims to leverage its technology platform to enter new geographies in the medium term.
Conclusion
Ather Energy’s Q1 results underscore the dual narrative of growth and investment. While the Rs 1.78 billion loss highlights the financial strain of scaling in a capital-intensive industry, the Rs 6.45 billion revenue and margin improvements signal operational progress. With a clear roadmap and expanding market presence, Ather is positioning itself as a long-term contender in India’s evolving EV ecosystem.
Sources: Economic Times, News18, Business Today
