Published: 18th Sep 2024
By: Value Research
Recently, Ola Electric went public, delivering stellar returns on the listing day itself. Very soon, its closest rival, Ather Energy, filed its IPO (initial public offering) papers on September 9, 2024, aiming to raise Rs 3,100 crore.
Despite the hype around Ather, a closer look at its financials paints a bleak picture. The next few slides explain why.
While Ola Electric’s lowest-priced model is offered at Rs 80,000, Ather Energy’s starting price is Rs 1.12 lakh. In terms of sales too, Ola Electric beats Ather. Ola reported sales of 3.29 lakh units in FY24 against Ather’s 1.09 lakh units.
When it comes to marketing expenditure, Ather spent a whopping Rs 340 crore, while Ola Electric spent only Rs 190 crore over the last three years. And yet Ola Electric’s brand presence (partly due to Ola Cabs’ ride-sharing business) outpaces that of Ather’s.
At present, Ather’s capacity utilisation is at a mere 29% of its 4.2 lakh unit capacity. On the other hand, Ola Electric’s capacity utilisation stands at 49% of its total capacity of 6.8 lakh units.
Due to higher expenditure on R&D and its employees, Ather’s profit margins pale in comparison to that of Ola Electric. Though Ola Electric itself doesn’t fare too well, its financials are better compared to Ather’s. For a complete head-to-head comparison of their numbers, read the full story from the link below.