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Ather Energy’s Q1 results could signal a turning point. With revenue racing ahead and margins improving, is the electric scooter pioneer finally on the road to profitability?
Ather Energy is set to announce its Q1 FY25-26 results on August 4, 2025 — its first quarterly report after a high-profile IPO in May. Investors and EV watchers alike will be eager to assess how India’s leading electric scooter maker is balancing rapid scale with improving financial discipline.
With revenue momentum strong and losses narrowing in recent quarters, the Q1 numbers could mark a crucial checkpoint on Ather’s road to profitability. Here’s what to watch.
Revenue Growth: High-Speed Momentum Continues
Ather’s top line is expected to keep its upward trajectory. In Q4 FY24-25, revenue from operations surged 29 per cent YoY to Rs 676 crore, driven by robust demand for its electric scooters — especially the new entry-level model. For the full FY25, revenue climbed to Rs 2,305 crore, a 29 per cent increase over the previous year.
That momentum is expected to continue into Q1, fueled by higher sales volumes. Importantly, Ather’s rapid growth is now accompanied by margin improvements, indicating that operational leverage is beginning to take effect.
Losses Narrowing, Margins Improving
While still in the red, Ather has been steadily shrinking its losses. In Q4 FY24-25, net loss declined to Rs 234.4 crore, from Rs 283.3 crore a year earlier — a ~17 per cent improvement. For the full year, FY25 net losses narrowed to Rs 812 crore from Rs 1,059.7 crore in FY24.
Gross margins have also improved significantly, rising to 18 per cent in Q4 FY25 from just 9 per cent a year ago. For the full year, gross margins nearly doubled to 19 per cent. These gains were driven by higher volumes, better product mix, and improved manufacturing efficiencies.
If this trend holds, Q1 FY26 could mark another step toward breakeven — especially if margins stabilise or inch higher.
Operational Trends: Volume Surge, Cost Discipline
In FY25, Ather sold approximately 1.55 lakh scooters — a 42 per cent jump over FY24. A major contributor has been the Ather 450S Rizta, a budget model that now accounts for 57 per cent of volumes. This product helped Ather expand in price-sensitive markets like Delhi, Rajasthan, Maharashtra, and Gujarat.
While this shift toward affordability has led to a decline in the average selling price (from Rs 1.58 lakh in FY22 to Rs 1.29 lakh by 9M FY25), the company’s cost per unit has declined even faster, pushing margins into positive territory. Gross margins (excluding subsidies) recently turned positive at 12 per cent, thanks to localisation and economies of scale.
Expect Q1 results to reflect continued strong delivery volumes, with a possible double-digit YoY growth. The key focus, however, will be whether gross margins hold or improve — signalling better unit economics.
IPO Impact: Expansion, R&D, and Cash Burn
Following its IPO, Ather is actively investing in distribution and product development. In Q4 FY25 alone, its retail footprint grew 32 per cent with new experience centres across India. The company has earmarked Rs 750 crore for R&D and Rs 300 crore for marketing over the next three years.
While such spending supports long-term growth, investors will closely track operating expenses and cash burn. With fresh capital from the IPO, Ather has a runway — but will need to demonstrate that each scooter sold contributes more toward fixed costs.
EBITDA loss margin trends in Q1 will offer clues about Ather’s cost control discipline in this next phase.
Ather gets top marks on growth, with revenue growing at a 107 per cent CAGR between FY22 and FY24. However, its earnings quality remains weak — with a FY24 ROE of -181 per cent and a ROCE of -71 per cent. While early-stage losses are typical for tech-driven firms, investors will watch for signs of improving capital efficiency.
Valuation remains a concern. At the IPO price of Rs 321, Ather was valued at 4.4 times its book value — a high valuation for a loss-making firm. Since listing, the stock has shown muted momentum, briefly dipping below issue price before recovering to around Rs 350 by the end of July.
Q1 could be pivotal in changing sentiment. Positive earnings surprises or improved guidance may justify the premium valuation. Conversely, any slip in margins or growth could reinforce investor caution.
The Road Ahead
Ather Energy’s Q1 FY26 results will offer key signals on how well the company is managing the transition from high-growth startup to a more mature, sustainable business. Strong revenue growth is expected, but investor attention will be on:
- Margin trends (gross and EBITDA)
- Cash burn trajectory
- Commentary on cost controls and expansion
- Guidance for FY26
If Ather shows continued margin improvement and operating leverage, it could pave the way for re-rating. But as with any EV journey, the route to profitability is rarely linear — and Q1 will show whether Ather is still accelerating or hitting speed bumps.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and has been reviewed by human experts for accuracy and is intended for informational purposes only. Please take it with a grain of salt and conduct your own research or consult a financial advisor before making any investment decisions.
Disclaimer: This content is for information only and should not be considered investment advice or a recommendation.
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