Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 and in furtherance to our earlier letter dated ....
ATHERENERG · price
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Ather Energy reported a breakthrough year with volumes up 66% YoY, driven primarily by the Rizta product which now accounts for three-quarters of sales. The company doubled its store count from 351 to 700 stores, targeting the 'Middle India' strategy across five states, which saw market share quadruple from 4% to 17.3%. Gross margin (AGM) improved by 5 percentage points to 24% (with subsidy), while EBITDA losses improved sharply from 23% to negative 2% in Q4, a 2000 bps improvement. Pro-Pack attach rates reached an all-time high of 93% in Q4. However, management flagged near-term margin pressure from commodity inflation (lithium, aluminum, rare earth magnets up 40-50%), with ~INR4,000 in price hikes taken so far in 2026 and more likely. The EL platform is on track for launch later this year targeting the mass segment (INR 1-1.25 lakh), while Factory 3.0 in AURIC will add 42,000 units/month capacity by end of FY27.
Ather's strong execution on volumes and store expansion demonstrates successful scaling, with margin improvement ahead of expectations. However, investors should brace for near-term margin pressure from commodity inflation before EL platform and new capacity provide cost relief in FY27.