Ather Energy (ATHERENERG) investor relations material

Executive summary

• Q3 FY 2026 saw units sold rise 50% year-on-year to 68,000, with total income nearing INR 1,000 crores, up 53% year-on-year.

• Pan-India market share reached 18.8%, with 600 stores operational and plans to reach 700 by fiscal year-end; significant expansion in sales and distribution network.

• Cumulative sales crossed 500,000 units, with the Rizta model surpassing 200,000 units sold and launched in Sri Lanka.

• Non-vehicle revenue reached 14% of total, driven by software and service offerings.

• Unaudited financial results for the quarter and nine months ended 31 December 2025 were reviewed and approved by the Board and auditors, with no material misstatements identified.

Financial highlights

• Adjusted gross margin improved 111% year-on-year and 19% quarter-on-quarter to INR 2,513 Mn (25%), a 700 bps year-on-year increase.

• EBITDA margin improved by 1,600 bps year-on-year to -3% for Q3 FY26.

• Revenue from operations for Q3 FY26 was INR 9,536 million, up from INR 6,349 million in the same quarter last year.

• Revenue from operations per unit reached INR 1.4 lakhs.

• Net loss for the quarter was INR 846 million, compared to INR 1,978 million in the same quarter last year.

Outlook and guidance

• Distribution network expansion to 700 stores by fiscal year-end, with a long-term target of 2,000 stores as new products launch.

• EL platform, a lower-cost architecture, to launch later this year, expected to open new market segments and improve margins.

• Management expects further EBITDA improvement by FY 2026 exit, despite commodity headwinds.

• Revenue recognition for certain vehicles deferred due to supply chain disruptions and regulatory compliance, impacting demand incentive claims.

• International expansion is a mid- to long-term growth lever, with early success in Nepal and Sri Lanka.