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.
Release Date: February 02, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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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.
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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: 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.
