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Key Points

Ather Energy, a prominent Indian electric vehicle manufacturer, continues to struggle with financial performance in Q4 FY25. The company reported a net loss of Rs 234.40 crore, an 18.5% increase from the previous quarter, despite a 29% revenue growth. Founded by Tarun Mehta and Swapnil Jain in 2013, Ather has yet to turn a profit, with its financial prospectus acknowledging ongoing challenges. The company's recent IPO and stock market debut reflected investor caution about its long-term financial sustainability.

Key Points: Ather Energy Widens Losses Despite 29% Revenue Jump in Q4

  • EV maker reports widening quarterly losses
  • Revenue increases despite financial strain
  • IPO receives lukewarm investor response
  • Consistent annual loss trend continues
2 min read

EV maker Ather Energy's net loss widens by 18.5 pc in Q4 FY25

EV maker Ather Energy reports Q4 net loss of Rs 234.40 crore, revenue rises 29% amid ongoing financial challenges

"Never reported a profit since 2013 - Ather Energy Financial Prospectus"

New Delhi, May 12

Electric vehicle (EV) maker Ather Energy on Monday reported a net loss of Rs 234.40 crore in the fourth quarter of last financial year (FY25), widened by 18.5 per cent from Rs 197.8 crore net loss in Q3 (quarter-on-quarter).

Total expenses rose to Rs 922 crore in Q4, 8.7 per cent up on the quarterly basis and 12.6 per cent year-on-year.

The company's revenue from operations went up 29 per cent to Rs 676 crore in Q4, from Rs 523.4 crore in the year-ago period.

Meanwhile, the earnings before interest, taxes, depreciation and amortization (EBITDA) loss stood at Rs 172.50 crore, against a loss of Rs 238.50 crore from a year-ago period.

Ather Energy had made a muted debut on the stock exchanges. The stock was listed at Rs 328 per share on the National Stock Exchange (NSE), which was 2.18 per cent higher than its issue price. On the Bombay Stock Exchange (BSE), it opened at Rs 326.05, marking a 1.57 per cent gain.

The Rs 2,981 crore IPO of Ather Energy had received lukewarm investor interest, getting subscribed 1.43 times during the three-day bidding period from April 28 to 30.

The stock was up 3.11 per cent or Rs 9.35 to close at Rs 309.55 apiece on Monday.

Despite being one of the early players in India’s EV space, Ather has never reported a profit since it was founded in 2013 by Tarun Mehta and Swapnil Jain. The company’s red herring prospectus (RHP) states that it has been making losses every year and there is no certainty about becoming cost-effective or profitable anytime soon.

In the financial year 2023–24, Ather Energy reported a pre-tax loss of Rs 1,059.7 crore. This is a sharp increase from its Rs 864.5 crore loss in FY23 and Rs 344.1 crore in FY22 -- showing a widening gap in its financial performance. At the same time, its revenue in FY24 stood at Rs 1,753.8 crore, slightly lower than the Rs 1,780.9 crore it posted in FY23.

- IANS

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Reader Comments

R
Rahul K.
Ather makes great scooters but these losses are worrying. As an investor, I'm concerned about their path to profitability. The EV market is growing but competition from Ola and others is intense. Hope they can turn things around soon! 🚀
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Priya M.
I own an Ather 450X and absolutely love it! But I agree the financials don't look good. Maybe they expanded too fast? The service centers are excellent though - hope they don't compromise on quality to cut costs.
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Sanjay T.
This is why I didn't subscribe to their IPO. EV companies need massive capital and patience. Ather needs to show better unit economics - revenue growth alone isn't enough when losses keep increasing year after year.
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Ananya R.
People forget Tesla took 18 years to become profitable! Ather is building charging infrastructure and brand trust - these things take time. But yes, they need to control costs better. Maybe focus more on B2B sales?
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Vikram J.
The problem is pricing. ₹1.5 lakh+ is too much for middle-class Indians when petrol scooters cost half. Until battery prices come down, mass adoption won't happen. Government should increase FAME subsidies more.
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Neha P.
Their technology is world-class but Indian market is price sensitive. Maybe they should look at exports to Europe where people pay premium for quality EVs. Also why no cheaper models yet? Not everyone needs 120km range daily.

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