Has Ather Energy's net loss increased by 18.5% in Q4 FY25?
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Synopsis
Ather Energy's financial performance has raised concerns as its net loss expands significantly in Q4 FY25. Investors remain cautious despite revenue growth. Will Ather Energy find a path to profitability soon?
Key Takeaways
- Ather Energy reported a net loss of Rs 234.40 crore in Q4 FY25.
- Total expenses rose to Rs 922 crore in the same quarter.
- Revenue increased by 29% to Rs 676 crore.
- EBITDA loss improved to Rs 172.50 crore year-on-year.
- Ather's IPO was subscribed only 1.43 times.
New Delhi, May 12 (NationPress) The electric vehicle (EV) manufacturer Ather Energy has reported a net loss of Rs 234.40 crore for the fourth quarter of the last financial year (FY25), reflecting an 18.5% increase from a net loss of Rs 197.8 crore in Q3 (quarter-on-quarter).
The total expenses surged to Rs 922 crore in Q4, marking an 8.7% rise on a quarterly basis and a 12.6% increase year-on-year.
Revenue from operations saw a notable increase of 29%, reaching Rs 676 crore in Q4, compared to Rs 523.4 crore during the same period last year.
Additionally, the earnings before interest, taxes, depreciation, and amortization (EBITDA) loss was recorded at Rs 172.50 crore, which is an improvement from the loss of Rs 238.50 crore reported a year earlier.
Ather Energy had a modest stock market debut, with shares listed at Rs 328 on the National Stock Exchange (NSE), representing a 2.18% increase from its issue price. On the Bombay Stock Exchange (BSE), the stock opened at Rs 326.05, up by 1.57%.
The Rs 2,981 crore IPO of Ather Energy garnered lukewarm interest from investors, being subscribed only 1.43 times during the three-day bidding window from April 28 to 30.
On Monday, the stock closed at Rs 309.55 per share, up by 3.11% or Rs 9.35.
Despite being an early entrant in India's EV market, Ather has not turned a profit since its establishment in 2013 by Tarun Mehta and Swapnil Jain. The company's red herring prospectus (RHP) indicates persistent losses without a clear timeline for achieving profitability.
For the financial year 2023–24, Ather Energy reported a pre-tax loss of Rs 1,059.7 crore, sharply rising from a Rs 864.5 crore loss in FY23 and Rs 344.1 crore in FY22, highlighting a widening financial gap. In contrast, its revenue for FY24 was Rs 1,753.8 crore, slightly down from Rs 1,780.9 crore in FY23.
Point of View
Ather Energy's continued financial struggles despite its early entry into the EV sector highlight the challenges faced by startups in achieving profitability. It raises questions about the sustainability of business models in this rapidly evolving industry.
NationPress
22/07/2025
Frequently Asked Questions
What caused Ather Energy's net loss to widen in Q4 FY25?
The widened net loss is attributed to increased total expenses, which rose by 8.7% quarter-on-quarter and 12.6% year-on-year, despite a revenue increase of 29%.
Has Ather Energy ever reported a profit?
No, Ather Energy has not reported a profit since its inception in 2013 and continues to face financial challenges.
How does Ather Energy's IPO performance indicate investor sentiment?
The IPO received lukewarm interest, being subscribed only 1.43 times, suggesting cautious sentiment among investors regarding the company's future.
What are Ather Energy's revenue figures for FY24 compared to previous years?
In FY24, Ather Energy reported revenue of Rs 1,753.8 crore, slightly lower than Rs 1,780.9 crore in FY23 and indicating a decline in growth.
What is the outlook for Ather Energy's profitability?
According to its red herring prospectus, Ather Energy has been incurring losses annually, and there is no clear timeline for achieving profitability.
