Ather Energy (ATHERENERG) Q4 24/25 earnings summary

Executive summary

• FY 2025 saw a pivotal expansion from one to seven products across two lines, driving strong volume and margin growth, with 155,394 units sold, up 42% year-over-year.

• Total income for FY25 reached INR 23,052 million, a 29% increase year-over-year.

• Distribution network expanded with 143 new experience centers and 1,128 new charging points, and new products including Rizta, Halo, and Halo Bit were launched.

• The company transitioned to a public entity, completed a significant IPO, and listed on NSE and BSE in May 2025.

• Annual and quarterly financials were audited and reviewed, confirming compliance with Indian Accounting Standards and SEBI regulations.

Financial highlights

• Revenue from operations for FY25 was INR 22,550 million, up from INR 17,538 million year-over-year.

• Adjusted gross margin improved by 1,000 basis points to 19% in FY25, with EBITDA margin improving by 1,300 basis points to -23%.

• Net loss for FY25 narrowed to INR 8,123 million, with a margin of -35%.

• Cost of goods sold per unit reduced by 19% year-over-year, driven by R&D and product mix.

• Software attach rate reached 88% for the year, contributing over 600 basis points to revenue.

Outlook and guidance

• FY 2026 is expected to be strong, with new products and expanded distribution driving growth.

• Short-term growth will be led by distribution expansion, mid-term by new product launches including the EL platform.

• Profitability is expected at a lower scale due to a capital-efficient business model and operating leverage.

• The company invested in a new manufacturing project in Maharashtra, signaling expansion plans.