NEW DELHI: Ather Energy Ltd is moving closer to breakeven as rapid scale-up in volumes and an aggressive expansion of its retail network offset persistent commodity cost pressures, even as the electric two-wheeler maker continues to operate with narrow margins.
The Bengaluru-based company saw its net loss narrow to ₹517 crore in fiscal year 2026 (FY26) from ₹812 crore a year earlier, aided by a 16.3 percentage point improvement in earnings before interest tax depreciation and amortization (Ebitda) margin to -6.7%.
Revenue rose 66% to ₹3,823 crore, driven by a 69% jump in volumes to 263,000 units. The company said store expansion and product-led demand were key drivers of growth, with distribution emerging as a central lever in FY26. On this revenue base, Ather Energy is set to outpace Ola Electric based on the latter’s revenue guidance of ₹3,000–3,200 crore.
“FY26 was definitely a very massive and important year for us. It was truly a breakthrough year. We originally set out to establish that on the back of a new product like Rizta, Ather’s rightful market share and volumes are going to be substantially higher,” said Tarun Mehta, chief executive and co-founder of Ather, in an earnings call on Monday.
Closing the gap
The improvement in profitability trajectory places Ather in line with peers such as Bajaj Auto, which is also nearing breakeven in its electric two-wheeler business. TVS Motor has not disclosed its electric vehicle (EV) profitability position.
The results were announced just ahead of the company completing one year since its stock market debut on 6 May 2025. Since listing, Ather’s stock has risen more than 200%, taking its market capitalization to ₹35,000 crore, more than double that of rival Ola Electric.
On Monday, the stock closed 0.2% higher, compared with a 0.4% gain in the Nifty Auto index.
During FY26, Ather added 350 stores, taking its total network to 700 outlets across states including Gujarat, Madhya Pradesh and Odisha, alongside its established presence in Karnataka, Kerala and Tamil Nadu.
Mint reported on 10 March that the company plans to scale its network to more than 1,100 stores in FY27 ahead of new vehicle launches based on its EL platform. Its Chhatrapati Sambhaji Nagar facility is also expected to go live during the current fiscal year, supporting scale-up of the EL platform scooters.
Mehta said the company is targeting the mass-market ₹1 lakh–1.25 lakh electric scooter segment, which accounts for a bulk of industry volumes.
“We are particularly targeting this segment. In fact, EL will play a dual role in our expectation. It will give us the opportunity to expand margins with less dependence on really expensive commodities like aluminium, even reduced copper, and considerable cost reduction fundamentally with how we have designed this platform,” Mehta told analysts.
Management noted that commodity prices, including lithium and aluminium, have risen sharply due to global disruptions, estimating an increase of 40–50% in recent months due to geopolitical factors including the West Asia conflict.
While Ather has taken selective price increases, management said higher costs have been partly offset by strong volume growth, which it expects to sustain in the coming quarters.