Has Ather Energy’s Q1 revenue declined by 5% sequentially, with a net loss of Rs 178 crore?
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Synopsis
Ather Energy's recent financial report reveals a 5% revenue decline in Q1 FY26, alongside a net loss of Rs 178 crore. Despite the quarterly drop, the company shows remarkable year-on-year growth with a 79% increase in operational revenue. Discover the full insights into Ather Energy's performance and its implications for the electric vehicle market.
Key Takeaways
- Revenue dropped 5% sequentially to Rs 645 crore.
- 79% YoY growth in operational revenue.
- Net loss improved to Rs 178 crore.
- Significant increase in operational costs by 54%.
- Retail volumes more than doubled YoY.
Mumbai, Aug 4 (NationPress) The electric two-wheeler manufacturer Ather Energy announced a quarter-on-quarter (QoQ) revenue decline of 5%, reporting Rs 645 crore for the first quarter (Q1) of FY26, compared to Rs 676.1 crore in the previous March quarter (Q4 FY25).
Additionally, total income decreased by 2.17% sequentially to Rs 672.9 crore, down from Rs 687.8 crore, as per the filing made to the stock exchange.
On a year-on-year (YoY) basis, however, revenues from operations soared by 79% from Rs 368.4 crore in the same quarter last year (Q1 FY25).
Total income experienced a remarkable increase of 82.65% on a YoY basis, as highlighted in the regulatory filing.
The company reported a net loss of Rs 178 crore for the quarter, which is a slight improvement from the Rs 183 crore loss recorded a year prior.
This loss is also less severe than the Rs 234 crore loss from the March quarter.
Operating expenses for the Tarun Mehta-led firm surged by 54% to Rs 851 crore in Q1 FY26, up from Rs 551 crore in the same quarter the previous year.
According to the filing, the cost of materials, chiefly due to battery and component purchases, comprised the largest portion of expenses, rising by nearly 74% to Rs 503 crore.
This expenditure accounted for over 61% of total costs during the quarter.
Employee benefit expenses increased significantly, rising 37% YoY to Rs 119 crore in the reviewed quarter, up from Rs 87 crore in the same period last fiscal year.
EBITDA reached Rs 134 crore, a recovery from a Rs 127 crore loss last year, although it remained lower than the Rs 172 crore loss from the previous quarter.
Ather also noted an increase in other income to Rs 28 crore, up from Rs 8 crore a year before, as stated in the filing.
Retail volumes grew by 1% sequentially and more than doubled compared to the previous year, increasing by 2.5 times.
Gross margins remained stable at around 80% both QoQ and YoY.
Following the earnings report, Ather Energy shares surged 12.81% to Rs 391.8 on the National Stock Exchange (NSE) on Monday.
Point of View
It's pivotal to recognize Ather Energy's resilience despite recent financial fluctuations. The company is navigating the challenges of the electric vehicle market with a notable year-on-year revenue increase, signifying strong demand and potential for recovery. With ongoing investments in innovation and infrastructure, Ather Energy remains a key player to watch.
NationPress
05/10/2025
Frequently Asked Questions
What caused Ather Energy's revenue decline in Q1 FY26?
The 5% revenue decline is attributed to various market factors, including increased competition and operational challenges faced during the quarter.
How does Ather Energy's performance compare YoY?
Year-on-year, Ather Energy has shown significant growth with a 79% increase in operational revenue compared to Q1 FY25.
What is the net loss reported by Ather Energy?
Ather Energy reported a net loss of Rs 178 crore for the quarter, which is an improvement from the loss of Rs 183 crore a year ago.
What impact did Ather Energy's earnings report have on its stock?
Following the earnings announcement, Ather Energy shares increased by 12.81% on the National Stock Exchange.
What are the key expenditures affecting Ather Energy's financials?
The primary expenditures include costs related to materials, particularly battery and component procurement, which saw a significant rise during the quarter.
