Ather Energy released its Q4 FY26 and full-year FY 2026 results yesterday, and the headline numbers are reassuring as the company remains on the right track.
Let’s see if it should press the accelerator a wee bit more now. First, the numbers.
Full Year Numbers
Ather reported full-year revenues of INR 36,718 million (approximately USD 440 million), a 62.8% jump over FY25 revenues of INR 22,550 million. This was riding on an 82.3% jump in scooter sales from 131,174 units in FY 2025 to 239,129 units in FY 2026. Not considering the revenues from software sales (significant), the impact of BAAS (not significant), metrics we will get to know only when Ather releases the annual report, we can, for now, say that revenue per scooter declined from INR 172k to INR 154k. This is likely because the share of the Rizta has grown significantly, and the lower-end variants of the family scooter start retailing at about INR 117k.
We estimate that the Rizta now accounts for about 75% of Ather sales. The lower-priced Rizta also has better margins than the higher-priced 450 range. As a result, there is an all-around improvement in margins in Ather’s report.
Gross margin is now sitting comfortably above 30%. At 30.75%, these are Ather’s best-ever gross margins, significantly higher than the previous year’s 18.98%.
Net loss for the year narrowed from INR 8,123 million to INR 5,172 million — a 36.3% reduction. This was driven by an improvement in EBITDA margins from (negative)18.65% to (negative)11.12%. The company is still EBITDA negative, but it’s on the right track.
Q4 Numbers
The numbers start looking even better when we look at them for Q4 FY26. The last quarter was Ather’s best as it beat its own metrics set in Q3 FY 26. Revenues from operations came in at INR 11,747 million, up 74% year-on-year. Within the quarter, Gross Margins improved from 23% to 31%.
The quarterly net loss was INR 1,002 million, compared to INR 2,344 million in Q4 FY25 — a 57% reduction.
Most importantly, EBITDA margins in Q4 FY26 were at (negative) 5.92%, a huge improvement from (negative) 25.48% margins a year back, bringing the company closer to becoming EBITDA+.
Ather’s Factory 3.0 Delays and the Use of IPO Proceeds
Ather raised INR 26,260 million in its IPO in May 2025. As of the end of FY 26, the company had utilised INR 10,089 million, leaving INR 16,171 million parked in fixed deposits with commercial banks.
For the company’s upcoming Maharashtra factory in Chhatrapati Sambhaji Nagar, technically the company’s third manufacturing plant, Ather had allocated INR 9,272 million as capex. Out of that, only INR 1,396 million has been utilised. This indicates that the factory is delayed, as reported earlier, and has now been confirmed by Ather in the latest report. SoP at the Chhatrapati Sambhaji Nagar plant will now commence in Oct 2026.
Ather’s Rare Earth Problems and new Hong Kong Subsidiary
In the middle of 2025, Ather and most of the Indian E2W industry faced a shortage of rare earth magnets, the supply chain of which is heavily dependent on China. To secure the supply of magnets, Ather had to make temporary deviations from the Phased Manufacturing Program (PMP) guidelines in the manufacturing process for motors, related to the domestic fitment of magnets. As a result, Ather deferred INR 245.2 million in revenue recognition related to demand incentive claims.
That INR 245 million is not huge in the context of Ather’s revenues. However, it did make the company realise how exposed it is to geopolitics. As part of the results announcement, Ather also informed that it has set up a fully owned subsidiary in Hong Kong. The subsidiary will allow Ather to be closer to its core supply chain base for cells, magnets, and electronic parts.
