Ather Energy's Financial Turnaround

In a significant financial turnaround, Ather Energy has reported a reduction in its net loss to Rs 178.2 crore in the June quarter, down from Rs 182.9 crore a year earlier. This improvement is attributed to stringent cost control measures and innovative software-led monetization strategies.

Revenue and Volume Growth

The company witnessed an 83% year-on-year increase in revenue, reaching Rs 672.9 crore, with sales volumes nearly doubling to 46,078 units. This surge is largely due to the popularity of its family-focused Rizta scooter and an expanded retail presence.

Improving Margins and Software Revenue

Ather Energy's Ebitda margin saw a remarkable improvement, moving from -36% in FY24 to -16% in the current quarter. CFO Sohil Parekh highlighted the role of value engineering and a strong R&D focus in this achievement. Additionally, the company's paid software suite, AtherStack Pro, has become a significant revenue driver, with an attach rate of nearly 89%.

Expansion and Future Plans

The company has expanded its network by adding 95 new experience centers, now totaling 446. It's also innovating with a compact store format for smaller towns. On the technology front, Ather Energy is adopting lithium iron phosphate (LFP) battery chemistry and preparing to launch its cost-optimized EL platform, aiming to reach more price-sensitive segments.