Ather Energy Reports 89% Revenue Jump as EV Demand Runs Ahead of Supply

Ather's Q1: Revenue Nearly Doubles, Losses Shrink as Demand Outruns Supply

Ather Energy reported consolidated revenue of Rs 1,216.9 crore for the quarter ended June, an 89 percent jump from a year earlier, as demand for electric scooters in India continued to outrun supply. The net loss narrowed to Rs 51.1 crore from Rs 178.2 crore, and the Bengaluru-based company swung to a positive EBITDA margin of 0.8 percent — against a negative 15.7 percent a year ago. In absolute terms, EBITDA came in at Rs 9 crore versus a loss of Rs 106 crore in the same quarter last year.

The outperformance was led by demand that outstripped supply. Ather dispatched 83,173 scooters to dealers, up 81 percent year on year, while retail sales rose 102 percent to 90,808 units. Co-founder and CEO Tarun Mehta told a post-earnings analyst call that customer enquiries nearly doubled and pre-orders surged 158 percent, and the company estimates an unrealised retail opportunity of 13,000-15,000 scooters a month even after cutting dealer inventory from 14 days to three days. "Demand has really gone into a very different orbit altogether," Mehta said.

The next test comes on August 29, when Ather launches the first scooter built on its new EL platform — its entry into the mass segment. The product is expected to be priced between Rs 1 lakh and Rs 1.25 lakh ex-showroom, the largest price band in India's EV market today, and will sit below the existing 450 range (from Rs 1.35 lakh) and the Rizta (from Rs 1.21 lakh).

Not everything moved in Ather's favour. The company said its internal commodity cost index climbed to 146, above the level it anticipated three months earlier, as lithium, aluminium, copper and plastics prices rose on geopolitical disruptions and supply constraints. Pricing actions and manufacturing improvements added 2.6 percentage points to gross margins, but commodity inflation erased those gains, leaving adjusted gross margin at 22.4 percent, down from 23 percent a year earlier. Selective price increases lifted the average selling price by about Rs 11,000 in the quarter.

EL Launch, Commodity Costs and Software Revenue Shape Ather's Next Phase

The EL Launch Moves Ather Into the Volume Fight

With the EL, Ather is attacking the price band that accounts for the largest share of India's EV scooter market. Until now, its 450 and Rizta lines positioned it as a premium player; the Rs 1-1.25 lakh price range puts it directly against mass-market rivals such as Ola Electric and the electric lines of Bajaj, TVS and Hero. The move is a bet that brand equity built at the premium end will transfer to higher volume at lower price points — and that supply constraints, not demand, were the binding factor. The 158 percent surge in pre-orders supports the latter reading, though generating order intake is easier than executing profitably at lower price points.

Software Revenue Is Quietly Changing the Margin Story

The commodity headwind is real: Ather's cost index of 146 exceeded its own three-month-old forecast, and Mehta warned of "ups and downs" in coming quarters. The counterweight is a growing recurring revenue stream. Nearly 94 percent of customers opted for the AtherStack Pro software package, and non-vehicle businesses now contribute 14 percent of revenue. That mix shift matters as the EL enters lower-margin territory — software subscriptions can partially offset the price pressure of the mass segment. Still, adjusted gross margin fell to 22.4 percent from 23 percent, so the offset has yet to fully prove itself.

Demand Drivers Go Beyond the Product

Mehta attributed the surge to more than undersupply, citing better total cost of ownership for EVs, consumer concerns over E20 petrol standards and — most concretely — the success of retail finance. That financing channel is what lets "the same scooter buyer" absorb a higher upfront cost, which means Ather's demand is partly a credit story. A tightening in two-wheeler lending would hit the whole industry, making the availability of retail credit a variable worth watching alongside vehicle prices.

Capacity Is the Real Ceiling

Ather says it still leaves 13,000-15,000 scooters of retail demand on the table each month. The remedy is Factory 3.0 at Chhatrapati Sambhaji Nagar, due to begin operations in the third quarter, alongside the Auric facility. Together they are meant to support annual capacity of more than 9 lakh units by the end of FY27. Until then, the gap between reported demand and delivered vehicles will keep shaping quarterly results.

What Investors and Rivals Should Watch After Ather's Q1 Numbers

For investors and industry watchers, the next three quarters carry three specific checkpoints:

• The EL launch on August 29 — its final pricing and first-week order intake will show whether the mass-segment push generates volume without cannibalising the premium 450 and Rizta lines.
• Gross margin trajectory: with the commodity cost index at 146 and rising, watch whether adjusted gross margin holds above the 22.4 percent reported for Q1 as EL volumes begin to mix in.
• Factory 3.0, due to start operations in the third quarter, and the dispatch-versus-retail gap, which quantifies the 13,000-15,000 units of monthly unmet demand Ather claims to see.

Competitors — including Ola Electric and the EV lines of Bajaj, TVS and Hero — will be watching EL pricing for the signal it sends about how aggressively Ather intends to compete in the volume segment.