Ather Energy (ATHERENERG) Q1 25/26 earnings summary

Executive summary

• Q1 FY26 saw strong growth with 46,078 units sold, up 97% year-over-year, and total income of INR 6,729 million, up 83% year-over-year.

• Gross margins reached INR 1,540 million, up 117% year-over-year, with margin percentage at a record 23%.

• Market share doubled year-over-year to 14.3%, with leadership in South India and rapid expansion in Middle and North India.

• Significant network expansion with 95 new stores added in Q1, bringing the total to 446.

• Non-vehicle revenues, including accessories and software, contributed 12% to total revenue.

Financial highlights

• EBITDA loss narrowed to INR 1,060 million, with margin improving from -33% to -16% year-over-year.

• Revenue from operations grew 79% year-over-year to INR 6,446 million.

• Adjusted gross margin improved from 19% last FY to 23% in Q1.

• Costs reduced by 7% compared to FY25 average, supporting margin improvement.

• Profit/loss margin improved to -26% from -50% year-over-year.

Outlook and guidance

• AtherStack 7.0 and new EL platform to be unveiled on August 30, with LFP battery ramp-up and Factory 3.0 progressing as planned.

• Expect continued growth from Middle India and further network expansion in North India.

• Short-term impact from rare earth magnet supply issues expected to be limited to Q2.

• LFP battery packs have gone live, with financial impact expected in Q2 and Q3.

• Factory 3.0 expansion on track, with updates expected in coming quarters.