This article first appeared on GuruFocus .
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Units Sold:68,000 units, up 50% year on year.
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Total Income:INR 995 crore, up 53% year on year.
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Adjusted Gross Margin:INR 251 crore, 25%, a 700 bps improvement year on year.
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EBITDA:Improved by 1,600 bps year on year and 700 bps quarter on quarter, ending at 3% negative.
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Market Share:18.8% pan India, with significant growth in Middle India and South regions.
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Store Locations:600 stores open pan India, aiming for 700 by fiscal year-end.
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Non-Vehicle Revenue:14% of total revenue, highest ever.
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Charging Infrastructure:5,000 charging points as of December 31st.
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Release Date: February 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ather Energy Ltd ( NSE:ATHERENERG ) reported a 50% year-on-year increase in units sold, reaching 68,000 units in Q3.
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Total income for the quarter was nearly INR1,000 crore, marking a 53% year-on-year growth.
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The company achieved a significant improvement in EBITDA, which increased by 1,600 basis points year-on-year.
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Ather Energy Ltd expanded its market share to 18.8% in Q3, with strong performances in regions like Maharashtra and Odisha.
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Non-vehicle revenue, including software sales, contributed 14% to the company's revenue, indicating a diversified income stream.
Negative Points
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The company anticipates potential headwinds in the industry, including commodity price fluctuations and risks to subsidies.
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Despite improvements, the EBITDA margin remains slightly negative at just under 3%.
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There is concern over the impact of commodity inflation, particularly in aluminum and copper, on future costs.
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The company does not benefit from the Production Linked Incentive (PLI) scheme, which could affect pricing strategies compared to competitors.
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Ather Energy Ltd faces challenges in expanding its distribution network, which is crucial for future market penetration.
Q & A Highlights
Q: How does Ather Energy plan to expand its distribution network in the next 2-3 years, and what role will new products play in this expansion? A: Tarun Mehta, CEO, explained that distribution and product portfolio are closely linked. The company plans to expand its distribution network in sync with the launch of new products, such as the EL platform, which is scheduled for later this year. This expansion will allow Ather to enter new markets, particularly in North India, and potentially increase the number of stores to a couple of thousand in the coming years.
Q: What are the main drivers for cost reduction at Ather Energy, and how does the company plan to manage commodity inflation? A: Tarun Mehta highlighted that cost reduction will come from both scale and value engineering. The company sees significant potential in mechanical improvements and manufacturing processes. Despite commodity inflation, Ather expects to manage costs through these efficiencies and believes it will exit the fiscal year in a stronger position.
Q: How does Ather Energy view its pricing power, especially in the context of not having PLI (Production Linked Incentive) benefits? A: Tarun Mehta stated that not having PLI benefits is advantageous in the mid-term as it allows Ather to operate on a clean pricing principle without future disruptions. The company has been disciplined with price hikes and recently announced a INR3,000 increase. Ather uses both base vehicle and software pricing to manage consumer flexibility and maintain pricing discipline.
Q: What is the outlook for non-vehicle revenue at Ather Energy, and how does it compare to traditional ICE companies? A: Tarun Mehta noted that non-vehicle revenue, currently at 14%, is expected to grow as the fleet size increases. While software contributes significantly, other areas like spares and service revenue will compound over time. Ather sees substantial upside potential in non-vehicle revenue, similar to legacy players, over the next 3-4 years.
Q: What is Ather Energy's strategy for international expansion, and what role will the EL platform play? A: Tarun Mehta mentioned that Ather has conducted limited experiments in Nepal and Sri Lanka with encouraging results. The EL platform, with its longer base and potential for bigger wheels, is seen as suitable for international markets. While international expansion is a mid to long-term growth driver, it is not expected to contribute significantly in the next 12 months.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
