Ather Energy doubles volumes, pares Q1 loss to Rs 178 cr

BEGALURU: Ather Energy reduced its net loss to Rs 178.2 crore in the June quarter from Rs 182.9 crore a year earlier, as strong cost control and software-led monetisation helped offset pricing pressures. Revenue rose 83% year-on-year to Rs 672.9 crore, while volumes nearly doubled to 46,078 units, led by demand for its family-focused Rizta scooter and an expanded retail footprint.

Ebitda margin improved by 1,700 basis points year-on-year to -16%. “A year ago, our Ebitda margin was at -36% in FY24, we closed FY25 at -23% and this quarter we are at -16%,” CFO Sohil Parekh told TOI in an interview. “It has been a consistent improvement driven by clockwork value engineering across multiple R&D projects, supported by a 45% R&D-heavy workforce. These are structural improvements, not just commodity tailwinds.”

Ather Energy has also leaned on software revenue to improve profitability. Its paid software suite, AtherStack Pro, which offers advanced features like auto-hold and ride analytics, has an attach rate – the percentage of new buyers opting for it – of nearly 89%. “For a customer to pay for software in a two-wheeler, it has to deliver incredible value,” CBO Ravneet Singh Phokela told TOI. “This product contributes around 6% of our revenue and has exceptional margin leverage. We see a lot more juice here as we keep adding new features.”

Phokela also pointed to Ather Energy’s pricing discipline in a market that has seen “reckless discounting.” He noted that the company has been able to hold its average selling price (ASP) while gaining share. “We gained share without cutting prices. In fact, we’ve maintained our ASP and even inched prices up slightly in places,” Phokela added, calling it a sign that “sanity is starting to return to the industry.”

The company added 95 new experience centres in the quarter, taking its network to 446, and is leaning on a new compact store format that breaks even at just 12-13 units a month. “This allows us to profitably enter smaller towns. If a city sells 100 units annually, we have the right to play there,” Phokela said.

On the technology front, Ather Energy has started deploying lithium iron phosphate (LFP) battery chemistry – cheaper and more stable than nickel-based batteries – and is preparing to launch its cost-optimised EL platform, which will underpin a new line of scooters designed for lower price points. “EL allows us to attack price points we can’t currently reach profitably, while LFP will become a larger part of our portfolio in the coming months,” Phokela added.

Addressing concerns over rare-earth supply risks, especially China’s export curbs on key materials used in EV motors, Phokela said that the company was “exploring multiple options and technologies,” adding that any disruption “would be limited to 7-8 days.”

He added that while the Bengaluru-headquartered company currently leads in South India, Middle India (comprising Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh and Odisha) is its next big growth market. “South is now a consolidation market for us. Middle India is where the strongest focus is. North India remains in nurture mode,” Phokela told TOI.

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