Ola Electric rival Ather Energy’s loss narrows to Rs 178.2 crore in Q1 FY26; revenue rises 79%

Ather Energy, a Bengaluru-based listed electric vehicle maker that competes with Ola Electric, has reported robust first-quarter earnings for FY26, propelled by a surge in vehicle sales and a growing contribution from non-vehicle revenues.

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The company posted an 83% year-on-year rise in total income to Rs 672.9 crore, driven by the rise in sales of its family scooter series, Rizta, and continued retail expansion. Revenue from operations jumped by 79% year-on-year to Rs 644.6 crore from Rs 360.5 crore.

It sold 46,078 electric scooters in the quarter ended June 30, marking a 97% year-on-year jump. Rizta, launched in April 2024 as a convenience-first alternative to Ather’s performance-centric 450 series, played a key role in expanding the firm’s appeal beyond its core urban consumer base.

Adjusted gross margin for the quarter stood at Rs 154.8 crore, up 117% year-on-year. Excluding incentives, gross margin improved to 20%, a gain of approximately 700 basis points from the year-ago period. The improvement was attributed to a more premium product mix, R&D-led value engineering, and a favorable commodity environment, especially for battery cell inputs.

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EBITDA margin improved by 1,700 basis points year-on-year, narrowing the EBITDA loss to Rs 106 crore. Net loss for the quarter came in at Rs 178.2 crore, compared to Rs 182.9 crore a year earlier, despite a 54.3% increase in overall expenses to Rs 851.1 crore. Employee benefit expenses rose 37% YoY to Rs 118.6 crore.

Non-vehicle revenues, derived from services, software, and accessories, contributed 12% of total income, offering a higher-margin supplement to vehicle sales. AtherStack Pro, the company’s subscription-based software suite, saw strong uptake, reflecting growing demand for software-enabled riding experiences.

The company also reported significant network expansion, adding 95 new Experience Centres (ECs) in Q1, following 86 additions in Q4 FY25. Ather now operates 446 ECs across India, under multiple retail formats tailored for diverse city tiers. It also expanded its fast-charging network, Ather Grid, to 4,032 points across India, Nepal, and Sri Lanka.

Tarun Mehta, Executive Director and CEO at Ather Energy, said, "We have had a phenomenal start to this financial year, led by Rizta’s success and a strong expansion of our retail footprint. We were No.1 by market share in South India this quarter and are now scaling up quickly across Middle India, which has ramped up faster than expected. Over the next quarters, there will be a larger footprint expansion in the Northern markets. This quarter saw significant growth in our margins, demonstrating our strong focus on profitability. Even as we expand pan-India, our ASP has held steady, and our market share continues to grow."

Ather’s national market share increased to 14.3% in Q1 FY26, up from 7.6% a year earlier. The company retained its leadership in South India with a 22.8% share, and saw a 2.6x year-on-year growth in Middle India to 10.7%.

The company went public in May 2025, becoming the first mainboard listing of FY26. Its IPO was priced at Rs 321 per share and raised Rs 2,981 crore, including Rs 1,340 crore from anchor investors.

As of July, Ather held a 16.3% share of the electric two-wheeler market, according to data from the Vahan portal, placing it just behind Ola Electric, which led with 17.9%.