Ather Energy concluded FY ’26 as a breakthrough year, driven by the successful launch of its Rizta scooter and a targeted expansion into ‘Middle India’. The company achieved an 80% increase in volumes compared to two years ago, with Q4 alone delivering 83,000 units. Ather also doubled its retail footprint to 700 stores, while significantly improving margins and narrowing EBITDA losses to -2%, positioning itself for future growth via the upcoming EL platform.
Financial and Operational Breakthrough
FY ’26 proved to be a transformative year for Ather Energy, with overall volumes rising by 66%. A primary catalyst for this growth was the Rizta scooter, which now accounts for nearly three-quarters of total sales. The company successfully improved its market share, climbing from 8% to 18.6% by the end of Q4. Margin improvement was equally impressive, with the Annual Gross Margin (AGM) rising from 19% to 24% (with subsidies), and from 12% to 21% (without subsidies), fueled by a 9% reduction in COGS.
Strategic Market Expansion
Ather’s targeted approach in ‘Middle India’—comprising Chhattisgarh, Gujarat, Madhya Pradesh, Odisha, and Maharashtra—yielded exceptional results, with market share in the region surging to 17.3%. Nationally, the store count doubled from 351 to 700 by March 2026. Notably, 75% of these new stores were opened with existing partners, indicating strong dealer unit economics. Furthermore, the company solidified its charging ecosystem, with over 6,000 fast-charging points now utilizing the LECCS standard.
Future Growth Drivers: The EL Platform
Looking ahead, Ather is prioritizing the commercialization of its EL scooter platform, designed to target the mass-market INR 1 lakh to INR 1.25 lakh segment. The platform aims to reduce dependency on high-cost commodities like aluminum. Supporting this expansion, the company’s Factory 3.0 in Chhatrapati Sambhajinagar is under development. Phase 1 is expected to commence trial productions by the end of the calendar year, providing an additional 42,000 units of monthly capacity.
Supply Chain and Outlook
Despite facing headwinds from commodity inflation—specifically in lithium-ion battery costs—Ather successfully utilized strategic sourcing and VAVE (Value Analysis and Value Engineering) to mitigate impact. While the company noted potential short-term margin pressures due to market volatility, management remains confident in its long-term cost structures. Ather has also seen a significant 93% attach rate for its Pro-Pack, which has become a key differentiator for both the product experience and the company’s financial performance.
Source: BSE
