Why Did Ather Energy Shares Drop Over 2% After a Big Post-Earnings Rally?
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Synopsis
In a surprising turn of events, Ather Energy's shares fell 2.1% following a post-earnings rally. Despite a drop in revenue, the company has shown resilience with reduced net losses and impressive YoY growth. Discover how this electric two-wheeler maker is navigating the market challenges.
Key Takeaways
- Shares declined 2.1% following post-earnings rally.
- Revenue for Q1 FY26 stands at Rs 645 crore.
- Net loss reduced to Rs 178.20 crore.
- 97% YoY volume growth
- Expansion to 446 retail stores.
Mumbai, Aug 5 (NationPress) Shares of the electric two-wheeler manufacturer Ather Energy experienced a decline of 2.1 percent on Tuesday as investors seized the opportunity to buy following a significant drop. The stock was recorded at Rs 240 per share at 2:40 p.m.
Earlier in the intra-day trading session, shares plummeted 4.6 percent, hitting a low of Rs 380.80 on the BSE. This downturn came after a notable increase of 12.81 percent to Rs 391.8 on the NSE on Monday, following the company’s quarterly earnings report.
The company disclosed a 5 percent decrease in revenue quarter-on-quarter, yet it managed to lower its net losses. Over the past month, the stock has appreciated by 17.69 percent, equating to an increase of Rs 58.35.
According to the latest stock exchange filing, revenue for Q1 of FY26 stood at Rs 645 crore, down from Rs 676.1 crore in Q4 of FY25. Earnings before interest, tax, depreciation, and amortization (EBITDA) improved to Rs 134 crore, a recovery from a Rs 127 crore loss last year.
The net loss for the first quarter of FY26 was recorded at Rs 178.20 crore, which represents a 2.6 percent reduction compared to Rs 182.90 crore in the same timeframe last year. This figure is also an improvement from the Rs 234 crore loss sustained in the March quarter.
Total income fell 2.17 percent sequentially, dropping to Rs 672.9 crore from Rs 687.8 crore.
However, when comparing year-on-year (YoY), revenue from operations surged by 79 percent from Rs 368.4 crore in the same quarter last year. This reduction in losses alongside revenue growth was attributed to an impressive 97 percent YoY volume increase in Q1. The company sold 46,078 units, driven by the growing demand for its flagship model, Ather Rizta, and a bold retail expansion strategy.
Ather has launched 95 new experience centers (ECs) in Q1, bringing its total retail network to 446 stores. This expansion has significantly improved accessibility, boosted sales volume, and enhanced operational efficiency. Retail volumes saw a 1 percent sequential increase and more than doubled compared to the previous year, soaring by 2.5 times.
The company reported an 82.65 percent year-over-year increase in total income. In Q1 FY26, the company led by Tarun Mehta experienced a 54 percent rise in total expenditure, amounting to Rs 851 crore in Q1 FY26, up from Rs 551 crore the previous year.
According to the regulatory filing, materials costs, primarily due to battery and component procurement, represented the largest portion of its expenditures, which surged nearly 74 percent.
Point of View
It is our duty to provide an unbiased view on the recent performance of Ather Energy. The decline in share prices post-earnings report indicates the volatility in investor sentiment, despite the company's efforts to improve its financial standing. Ather continues to expand its market presence, making it a key player in the electric vehicle sector.
NationPress
06/10/2025
Frequently Asked Questions
What caused Ather Energy's share price drop?
The share price drop was influenced by market fluctuations following a significant post-earnings rally, where investors opted to buy the dip after a notable surge in stock value.
How did Ather Energy perform financially?
Ather Energy reported a 5% quarter-on-quarter drop in revenue but managed to reduce its net losses significantly, showcasing a resilient financial performance.
What is the outlook for Ather Energy?
With a strong focus on expanding its retail footprint and increasing sales volume, Ather Energy aims to enhance its market position and continue its growth trajectory.
