Ather Energy narrows Q4 losses on the back of Rizta sales, signals a sharper path to profitability

Recently-listed EV maker Ather Energy Ltd. reported that its losses have narrowed in the March quarter, helped mainly by a strong consumer demand for its family two-wheeler 'Rizta,' even as the company's public debut drew a mixed response from investors.

Bengaluru-headquartered Ather Energy posted a net loss of ₹234 crore for the three months ended March 31, compared to a loss of ₹283 crore in the same period a year earlier.

Revenue for the same period climbed 29% year-on-year (YoY) to ₹676 crore, driven by higher sales volumes of its popular family-focused models. In the corresponding quarter last year, revenue stood at ₹523 crore.

Ather’s EBITDA loss also improved, shrinking to ₹172.5 crore from ₹238.5 crore a year earlier, reflecting better operating margins and control over costs as the EV maker scales up its production.

The earnings were announced Monday, May 12, a few days after the company made its stock market debut. Shares were listed at a modest premium to the IPO price of ₹321—opening at ₹328 on the NSE and ₹326.05 on the BSE, representing gains of 2.18% and 1.6%, respectively. The stock closed 3.11% higher at ₹309.55 after the results announcement.

The ₹2,981 crore IPO, which was open to the public from April 28 to April 30, saw a muted response across most investor categories. Retail investors subscribed 1.78 times their quota, while demand from qualified institutional buyers stood at 1.70 times. What was underwhelming was the portion dedicated to the non-institutional investors, staying at 66%. On the other hand, the portion dedicated for employees, saw a record 5.43 times oversubscription.

During the IPO period, Ather had said that the proceeds from the public offering would go towards a series of objectives which the company envisages, including a new manufacturing facility in the state of Maharashtra, ongoing research and development into the e-mobility sector, repayment of debt and other corporate expenses.

Ather is not the only two-wheeler EV maker to go public. Earlier, its closest competitor, Ola Electric had gone public. As per Ather, it wants to grow on the back of family-centric products, aiming for deeper market participation and narrowing its losses altogether.

As per the company, the March quarter financials is a step towards achieving that goal and improving its path towards profitability.

Shares of the company settled at 3.11% higher on Monday, with its share price closing at ₹309.55.