Ather Energy (ATHERENERG) Q1 25/26 earnings summary

Executive summary

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

• Maintained premium brand positioning, expanded product portfolio, and focused on quality, user experience, and cost efficiency.

• 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

• Adjusted gross margin improved to 23% in Q1 FY26, up from 19% last FY, with margin up 400 bps year-over-year and 500 bps sequentially.

• EBITDA margin improved by 1,700 bps year-over-year to -16%, with EBITDA losses reduced from -33% to -16%.

• Revenue from operations was INR 6,446 million, up 79% year-over-year but down 5% sequentially.

• Loss for the quarter was INR 1,782 million, with a margin of -26%.

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

Outlook and guidance

• AtherStack 7.0 to be unveiled on August 30; EL Platform in advanced development stages.

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

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