Why investors are cautious despite Ather’s revenue surge
Subscribe to enjoy similar stories.Ather Energy’s March quarter (Q4FY26) results are a classic case of operating leverage in action. While revenue surged 74% year-on-year to ₹1,175 crore, matching market expectations, net loss narrowed significantly, shrinking 57% to ₹100 crore.However, investors remain cautious despite these gains. Volume growth was robust, supported by rapid network ramp-up (700 experience centres versus 350 last year) and the continued success of the Rizta scooter.
The company also significantly expanded its service and charging networks. Despite higher spends on marketing and expansion, margins improved with operating leverage.Ather is now the third-largest electric two-wheeler company by volume, with a market share above 18%. Industry-wide electric vehicle (EV) penetration in scooters has already crossed 16% and is expected to reach 38% by FY30, according to Nomura Research.
Ather’s capacity expansion — from 35,000 units a month at present to an additional 42,000 units a month via its upcoming Aurangabad plant — suggests management is preparing for sustained demand.But higher crude oil prices due to the West Asia war are a double-edged sword for the company. Higher petrol prices boost EV demand, but rising commodity costs (particularly lithium cell prices, which are up 40-50%) are squeezing margins. Ather’s recent price hikes (about ₹4,000 between December and April) only partially offset these pressures.Demand risks are also significant.
Read on livemint.com