Electric scooter maker Ather Energy reported a net loss of ₹178.2 crore in Q1 FY26, a modest improvement from ₹182.9 crore a year earlier. This marks a nearly 3% narrowing of the loss despite a sharp rise in expenses.
Strong Revenue Growth and Sales Expansion
Operating revenue surged 79% year-on-year to ₹644.6–645 crore, up from about ₹360 crore in Q1 FY25. Ather sold 46,078 units, nearly doubling its volume compared to the same quarter last year, driven largely by demand for its flagship Rizta scooter
Cost Pressures Grow, but Operational Efficiency Improves
Total expenses rose 54% to ₹851.1 crore, primarily due to higher material costs and increased production-related expenses. Material costs alone jumped 62–74%, accounting for over 60% of total costs. Meanwhile, employee benefit costs rose ~37% to ₹119 crore, and depreciation and other operational costs also climbed
Yet, Ather’s adjusted EBITDA margin improved sharply to 16% in Q1 FY26, a ~1,700 basis‑point increase from a negative 33% in Q1 FY25. This reflects stronger pricing and growing non-vehicle income streams such as accessories and software
Market Share Gains and Retail Expansion
Ather now holds roughly 14–16% market share across India, ranking fourth behind Ola Electric, TVS Motor, and Bajaj Auto. It saw market share in Middle India double year-on-year to ~11%, supported by 95 new Experience Centres added in Q1, bringing the total to ~446 nationwide. Ather also expanded its charging footprint to over 4,000 Ather Grid points across India, Nepal, and Sri Lanka
What’s Driving the Margin Improvement?
- Premium product focus: The Rizta line now represents nearly 60% of sales volume, boosting average selling price and margins
- Aftermarket revenue: Non-vehicle income from software subscriptions, helmets, and warranty plans helps lift gross margins to ~23% from 19% last year mint.
Risks & Outlook Ahead
- Ather faces intense competition from well-funded rivals and discount-driven players such as Ola Electric
- Rising battery and component costs remain a pressure point, along with macroeconomic headwinds.
- With plans to reach 700 Experience Centres by FY26-end, growth in North and West India will be critical to sustaining momentum
Summary Table
| Metric | Q1 FY26 vs Q1 FY25 |
|---|---|
| Revenue | +79% to ₹645 crore |
| Net Loss | ₹178.2 Cr vs ₹182.9 Cr |
| Units Sold | 46,078 (+97%) |
| Total Expenses | +54% to ₹851 Cr |
| EBITDA Margin | Improved to 16% (from –33%) |
| Market Share | ~14–16%, with Middle India at ~11% |
