Ather Energy Ltd
Ather Energy Ltd
Consumer DiscretionaryIncorporated in 2013, Ather Energy ltd is an Indian electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems[1]
Ather Energy has unanimous analyst buy ratings (10/10) and strong TTM sales growth of 63%, but the stock trades at 14.4x book value with deeply negative ROE of -84% over 3 years and no path to profitability yet. At a market cap of Rs 36,880 Cr with a negative PE of -71.8, the risk-reward is balanced but skewed toward caution for new entrants.
Key Fundamentals
MidcapBikesAutomobilesTechnical Indicators
Key Insights
Strengths
1- Company is expected to give good quarter
Weaknesses
4- Stock is trading at 14.7 times its book value
- Company has low interest coverage ratio.
- Company has a low return on equity of -84.0% over last 3 years.
- Working capital days have increased from -25.5 days to 115 days
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 3d agoAther Energy has unanimous analyst buy ratings (10/10) and strong TTM sales growth of 63%, but the stock trades at 14.4x book value with deeply negative ROE of -84% over 3 years and no path to profitability yet. At a market cap of Rs 36,880 Cr with a negative PE of -71.8, the risk-reward is balanced but skewed toward caution for new entrants.
- Unanimous analyst consensus with 100% buy ratings (10 out of 10 analysts recommend buy)
- TTM revenue growth of 63% indicates strong demand momentum for electric two-wheelers
- 5-year compounded sales CAGR of 115% demonstrates exceptional top-line scaling from a low base
- Stock has delivered 203% returns over 1 year, reflecting strong market confidence in the EV thesis
- Losses narrowing with TTM profit improvement of 37% and last year ROE improving to -33% from 3-year average of -84%
- Company is expected to deliver a good upcoming quarter, suggesting near-term positive catalyst
- Operating in a secular EV adoption tailwind in India with government subsidies (FAME/PM E-Drive) supporting demand
- Stock trades at 14.4x price-to-book value, which is extremely expensive for a loss-making company
- 3-year average ROE of -84% and 5-year average of -102% indicate sustained capital destruction
- Negative PE ratio of -71.8 confirms the company remains unprofitable with no earnings to value
- Working capital days deteriorated sharply from -25.5 days to 115 days, indicating cash conversion cycle stress
- Low interest coverage ratio suggests debt servicing burden relative to operating income
- Zero dividend yield with no visibility on when shareholder returns could begin
- Market cap of Rs 36,880 Cr for a loss-making company implies significant future growth is already priced in
- 3-year compounded profit growth of only 12% despite 27% sales growth suggests margin compression
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 14h ago- Battery costs up 30-50% Jun 13
Lithium prices remain 2-2.5x historical levels, with battery cell costs rising 30-50% in recent quarters due to commodity inflation and supply-chain challenges.
- TVS & Bajaj hold 45% market Jun 13
TVS Motor (24.4% share, 3.41 lakh units) and Bajaj Auto (20.6%, 2.89 lakh units) together control nearly 45% of India's electric two-wheeler market with deeper pockets and ICE cost advantages.
- Still loss-making at ₹79.6 cr Jun 13
Ather reported a net loss of ₹79.6 crore in Q4 FY26, though improved from ₹197.8 crore loss in Q4 FY25. EBITDA margin remains negative at approximately -2%.
- Fixed cost structure risk Jun 8
About three-fourths of costs below gross margin are fundamentally fixed in nature, creating margin pressure if volume growth stalls amid elevated commodity costs.
- ₹2,500 cr fundraise from July Jun 13
Board approved raising up to ₹2,500 crore via QIPs (₹1,500 cr) and other equity instruments (₹1,000 cr), with process expected to launch as early as July 2026. Company is in talks with at least three investment banks.
- Factory 3.0 by Oct 2026 Jun 13
Largest plant in Chhatrapati Sambhajinagar with 1 million annual unit capacity at full scale; Phase 1 (500,000 units) to commission by end of CY2026, commercial ops by October 2026, taking total capacity to 14.20 lakh units by March 2027.
- Market share 4X to 18.6% Jun 8
Market share grew from 4.1% in June 2024 quarter to 17.3-18.6% in March 2026 quarter, an ~1,100 bps improvement. Volume growth of 82.34% is the strongest among top three players.
- Stock surges 82% from Jan low Jun 8
Shares hit ₹1,068.80 high on BSE, up 82% from January low of ₹588.65 and 240% in one year, significantly outperforming BSE Sensex's 4% decline.
- CLSA targets ₹1,450, 57% upside May 29
CLSA initiated coverage with 'Outperform' rating and ₹1,450 target (57% upside), valuing Ather at 40x FY32 normalized EPS. Blue-sky valuation goes up to ₹1,630.
- Revenue up 50% YoY in Q4 Jun 9
Q4 FY26 revenue from operations rose 50.2% YoY to ₹953.6 crore; FY26 full-year revenue grew 63% on volume growth aided by retail footprint doubling from 351 to 700 stores.
- Rizta crosses 3 lakh sales Jun 8
Family scooter Rizta crossed 3 lakh unit sales within two years of launch, adding the last 1 lakh units in just five months. Market share in northern states grew over 3X.
- 90%+ software attach rate May 29
Paid software adoption exceeds 90% with non-vehicle revenue contributing 13-14% of sales at meaningfully higher margins than vehicle sales, per CLSA.
- Virtual investor meet Jun 24 Jun 17
Ather Energy will hold a virtual investor and analyst meet on June 24, 2026, with discussions relying on publicly available information.
- Promoter declares no encumbrance Jun 16
Promoter Swapnil Babanlal Jain declared no encumbrance on shares for FY26 under SEBI regulations. Hero MotoCorp also confirmed no encumbrance on 11.51 crore shares.
- HSBC conference attendance Jun 19 Jun 16
Ather Energy will attend the HSBC 10th Annual Asia Credit Conference in Singapore on June 19, 2026.
- Insurance subsidiary incorporated May 28
Ather incorporated Ather Insurance Limited on May 27, 2026 as a wholly owned subsidiary to act as a corporate agent for insurance policies.
TL;DR: Ather Energy is executing an aggressive growth playbook — market share has quadrupled to ~18.6%, revenue grew 50%+ in Q4, losses are narrowing sharply, and the stock has rallied 82% from January lows. The ₹2,500 crore fundraise and Factory 3.0 (1 million unit capacity) position it for the next leg of scale. Key risks are elevated battery costs (up 30-50%), entrenched competition from TVS/Bajaj controlling 45% of the market, and continued losses. The trend is clearly improving with strong operating leverage ahead, but execution on the new factory and margin path to breakeven by FY28 will be the critical watchpoints.
Quarterly Results
| Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|
| Sales | 523 | 360 | 584 | 635 | 676 | 645 | 899 | 954 | 1,175 |
| Expenses | 762 | 489 | 723 | 776 | 848 | 779 | 1,031 | 1,026 | 1,244 |
| Operating Profit | -238 | -128 | -139 | -141 | -172 | -134 | -132 | -72 | -70 |
| OPM % | -46% | -36% | -24% | -22% | -25% | -21% | -15% | -8% | -6% |
| Other Income | 12 | 8 | 15 | 15 | 12 | 28 | 42 | 37 | 39 |
| Interest | 19 | 23 | 31 | 29 | 29 | 24 | 21 | 19 | 18 |
| Depreciation | 38 | 40 | 43 | 44 | 45 | 48 | 43 | 30 | 52 |
| PBT | -283 | -183 | -197 | -198 | -234 | -178 | -154 | -85 | -100 |
| Tax % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Profit | -283 | -183 | -197 | -198 | -234 | -178 | -154 | -85 | -100 |
| EPS in Rs | -24,721 | -61.17 | -64.01 | -64.21 | -8.06 | -4.78 | -4.05 | -2.22 | -2.62 |
Profit & Loss
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Sales | 35 | 80 | 408 | 1,781 | 1,754 | 2,255 | 3,672 |
| Expenses | 220 | 257 | 668 | 2,488 | 2,438 | 2,836 | 4,080 |
| Operating Profit | -185 | -177 | -260 | -708 | -685 | -581 | -408 |
| OPM % | -523% | -222% | -64% | -40% | -39% | -26% | -11% |
| Other Income | 14 | 7 | 4 | 21 | -139 | 50 | 146 |
| Interest | 24 | 28 | 40 | 65 | 89 | 111 | 82 |
| Depreciation | 25 | 35 | 48 | 113 | 147 | 171 | 173 |
| PBT | -220 | -233 | -344 | -864 | -1,060 | -812 | -517 |
| Tax % | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Profit | -220 | -233 | -344 | -864 | -1,060 | -812 | -517 |
| EPS in Rs | -20,119 | -21,345 | -30,079 | -75,436 | -92,469 | -27.95 | -13.51 |
| Div. Payout % | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
Balance Sheet
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Equity Capital | 0.02 | 0.02 | 0.02 | 0.02 | 0 | 29 | 38 |
| Reserves | 250 | 376 | 224 | 614 | 545 | 464 | 2,534 |
| Borrowings | 132 | 219 | 365 | 485 | 478 | 619 | 664 |
| Other Liabilities | 137 | 146 | 229 | 878 | 890 | 988 | 1,485 |
| Total Liabilities | 518 | 741 | 819 | 1,977 | 1,914 | 2,101 | 4,722 |
| Fixed Assets | 178 | 307 | 335 | 544 | 459 | 616 | 865 |
| CWIP | 104 | 47 | 93 | 37 | 71 | 122 | 103 |
| Investments | 39 | 92 | 37 | 286 | 292 | 41 | 552 |
| Other Assets | 198 | 295 | 354 | 1,109 | 1,092 | 1,322 | 3,202 |
| Total Assets | 518 | 741 | 819 | 1,977 | 1,914 | 2,101 | 4,722 |
Cash Flow
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Operating | -182 | -140 | -226 | -871 | -268 | -721 | 32 |
| Investing | -123 | -172 | 51 | -135 | 58 | -100 | -2,527 |
| Financing | 313 | 296 | 228 | 1,317 | 633 | 703 | 2,497 |
| Net Cash Flow | 8 | -16 | 52 | 311 | 423 | -118 | 2 |
| Free Cash Flow | -298 | -227 | -297 | -1,001 | -383 | -1,060 | -474 |
| CFO/OP | 98 | 79 | 87 | 123 | 39 | 124 | -8 |
Ratios
| Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|
| Debtor Days | 0 | 0 | 1 | 0 | 0 | 2 | 1 |
| Inventory Days | 79 | 226 | 57 | 59 | 26 | 48 | 35 |
| Days Payable | 47 | 269 | 113 | 88 | 90 | 109 | 105 |
| Cash Conversion Cycle | 32 | -43 | -56 | -29 | -64 | -60 | -68 |
| Working Capital Days | -225 | -425 | -203 | -36 | -122 | -69 | 115 |
| ROCE % | — | -42% | -51% | -95% | -75% | -66% | -20% |
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Company Information
Incorporated in 2013, Ather Energy ltd is an Indian electric two-wheeler (E2W) company engaged in the design, development, and in-house assembly of electric scooters, battery packs, charging infrastructure, and supporting software systems[1]