Ather Energy reported robust financial results for the second quarter, aligning with prior estimates. Revenue surged by 54% year-on-year to ₹890 crore, buoyed by a 67% year-on-year and 42% quarter-on-quarter increase in volume. The EBITDA loss was reduced to ₹130 crore, with an EBITDA margin of -14.7%, compared to -21% in the preceding quarter and -24% in the second quarter of FY25. This improvement was attributed to better scale and cost optimization efforts.
The gross margin (excluding incentives) rose to 17.3%, up from 16.5% in the first quarter and 10% in FY25, reflecting benefits from the transition to lithium iron phosphate (LFP) batteries and operational leverage.
Despite facing short-term supply chain challenges and a slight delay of 2-3 months in the launch of AURIC due to regulatory issues, the rollout of the electric vehicle platform remains on schedule using the existing facility in Hosur. Ather’s premium market positioning, coupled with high-margin non-vehicle revenue—which accounts for 12%—and the forthcoming mass e-two-wheeler (e-2W) platform, are anticipated to leverage India’s shift towards electric two-wheelers (2Ws). Analysts expect this trajectory could yield a return of tenfold over the next decade.
Estimates and target price remain largely unchanged, maintaining a “Buy” rating with a target price of ₹925. This valuation corresponds to 7x the estimated enterprise value/sales for September 2027, akin to EIM’s implied 7.5x enterprise value/sales for Royal Enfield during its high growth period from 2013 to 2017, with potential peak valuations reaching 10x.
Published on November 12, 2025.
