Ather Energy announced robust Q3 FY26 results, highlighted by a 50% year-over-year increase in unit sales, reaching 68,000 vehicles. Total income neared INR 1,000 crores, a 53% increase. The company saw adjusted gross margin improvements of 111% year-over-year, achieving 18.8% market share. Ather is expanding distribution with a goal of 700 stores by fiscal year-end and remains focused on leveraging software and non-vehicle revenues.
Key Financial Highlights
Ather Energy reported substantial growth in its Q3 FY26 performance:
- Unit Sales: Increased by 50% year-over-year to 68,000 units.
- Total Income: Approaching INR 1,000 crores, up by 53%.
- Adjusted Gross Margin: Improved by 111% year-over-year and 19% quarter-over-quarter, reaching INR 251 crores.
- Market Share: Achieved 18.8% pan-India market share.
Operational Successes
The company achieved significant milestones in Q3 FY26:
- Crossed 5 lakh cumulative units sold.
- Rizta sales crossed 2 lakh units.
- Exceeded 30,000 unit registrations and sales in October, a record month.
- Expanded distribution network to 600 stores and on track to reach 700 by fiscal year-end.
Strategic Focus and Future Plans
Ather Energy is focusing on several strategic initiatives:
- Middle India Growth: Increased market share in middle India from 14.6% to 17.4%.
- EL Platform Launch: Scheduled for later this year to lower entry price points.
- Non-Vehicle Revenue: Increased to 14% of total revenue in Q3 with strong margins, driven by ProPack software sales and features like Find My Scooter and AutoHold.
- Charging Infrastructure: Operates 5,000 charging points as of December 31.
Commodity and Market Outlook
Ather Energy acknowledges potential headwinds from commodities and subsidies and is focused on cost management. The company emphasizes the importance of EL to de-risk commodity pressures. The company also notes that December and January saw market growth in sales up 30-40% and 20-30% respectively.
Software and ProPack Performance
Software continues to be a key differentiator. 91% attach rate for software products was achieved. The company sees a 10%-20% long-term potential in cost structures and is focusing on manufacturing engineering for further cost reductions.
Source: BSE
