ATHERENERG

Narrows Losses on Strong Growth

reported a 74% YoY revenue surge to ₹1,175 crore in Q4FY26, while net loss narrowed 57% to ₹100 crore, underscoring the benefits of operating leverage. Robust volume growth, network expansion, and the success of the Rizta scooter supported performance. Despite higher marketing and expansion spends, margins improved, reflecting scale efficiencies. Performance Highlights Revenue (Q4FY26): ₹1,175 crore (+74% YoY). Net loss: ₹100 crore (–57% YoY). Market share: >18%, making Ather the third-largest EV two-wheeler maker. Network expansion: 700 experience centres vs 350 last year; service and charging infrastructure scaled up. Capacity expansion: Current 35,000 units/month; additional 42,000 units/month planned at Aurangabad plant. Industry Context EV penetration in scooters: 16% currently; projected to reach 38% by FY30 (Nomura Research). Macro tailwinds: Higher petrol prices boost EV demand. Macro risks: Rising lithium cell costs (+40–50%), rupee depreciation, and potential subsidy withdrawal. Risks & Challenges Commodity inflation: Lithium and rare-earth magnet supply chain risks (China-dominated). Price hikes: ~₹4,000 between Dec–Apr, only partially offsetting cost pressures. Demand risks: Rural consumption vulnerable to fuel inflation and El Niño-driven farm wage volatility. Policy risk: PM E-Drive subsidy (₹5,000 per scooter) may end after July. Valuation: EV-to-sales multiple of 6.5 (FY27 Bloomberg consensus) seen as stretched given raw material and regulatory pressures. Strategic Outlook EL platform launch (₹1–1.25 lakh segment) during festive season—largest growth lever. Vertical integration and AI-driven manufacturing efficiencies to support margins. Long-term runway compelling, but near-term execution and cost management critical.