Ather Energy Ltd, a prominent electric two-wheeler manufacturer, released its financial results for the January–March quarter of FY25 on Monday, May 12. The company posted a net loss of ₹234 crore, a significant improvement from the ₹283 crore loss in the same quarter last year, reflecting improved operational efficiency and stronger product demand.

Revenue Grows on Rizta Scooter Success

One of the most notable aspects of Ather’s Q4 earnings was the 29% surge in revenue, which reached ₹676 crore, up from ₹523 crore in the corresponding quarter of the previous fiscal year. The growth was driven by solid market reception to its family scooter model 'Rizta', which has quickly become a top-selling EV model for the company.

This revenue spike reflects the rising popularity of electric scooters in India, especially in the family segment. The Rizta model's affordability, reliability, and feature-rich profile have contributed heavily to its success in both metro cities and Tier 2 towns.

Improved EBITDA and Operational Metrics

Ather Energy's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) loss for the quarter stood at ₹172.50 crore, a meaningful reduction from the ₹238.50 crore EBITDA loss reported in the same period last year.

This reduction indicates that cost optimization measures, coupled with improved sales volume, are helping Ather gradually move towards operational profitability. This is especially important as the company prepares for expansion and scaling in FY26.

IPO Performance and Listing Day Movement

The company’s recent Initial Public Offering (IPO) saw mixed responses but still managed to make a positive market debut. Ather was listed at a premium of 2.18% at ₹328 on NSE, and 1.6% premium at ₹326.05 on BSE, compared to the issue price of ₹321 per share.

On the day of the earnings announcement, Ather’s stock rose by 3.11% to close at ₹309.55, showing a positive reaction from investors, despite broader market volatility.

IPO Subscription Data at a Glance

The ₹2,981 crore IPO, open between April 28 and April 30, drew mixed interest across investor segments:

• Retail Investors: 1.78x subscription

• Qualified Institutional Buyers (QIBs): 1.70x

• Non-Institutional Investors (NIIs): 66% (subdued)

• Employee Quota: 5.43x subscription (robust interest)

Despite the tepid response from NIIs, the overall listing was successful, and the strong demand in employee and retail categories pointed to confidence in Ather’s long-term potential.

Use of IPO Proceeds

Ather Energy plans to deploy the IPO proceeds in several strategic areas:

• Setting up a new manufacturing facility in Maharashtra

• Research & Development (R&D) efforts for next-gen electric vehicles

• Repayment of debt

• Brand marketing and customer outreach

• General corporate purposes

This diversification of capital usage is designed to help the company scale production, improve brand recall, and strengthen its position in the competitive EV market.

CEO Tarun Mehta on Future Outlook

Speaking after the earnings release, Ather Energy CEO Tarun Mehta expressed optimism about the company’s near-term growth trajectory. He stated:

“We are bullish on growth, margin, volume, and market share for FY26. We expect the volume growth in FY26 to surpass what we saw in the first nine months of FY25.”

Tarun Mehta also confirmed that Ather Energy’s EBITDA breakeven point and cashflow positive status are expected to align, suggesting that the company may reach profitability sooner than earlier anticipated.

This is a strong vote of confidence in Ather’s financial direction, especially at a time when many electric vehicle start-ups are grappling with high burn rates.

Key Takeaways from Ather Energy Q4 FY25 Results

• Loss Reduction: Net loss narrowed to ₹234 crore from ₹283 crore YoY

• Revenue Growth: Quarterly revenue rose 29% to ₹676 crore due to strong Rizta demand

• IPO Listing: Successfully listed at a premium, with post-listing stock appreciation

• EBITDA Improvement: Reduced loss shows improved cost management and sales execution

• CEO Confidence: Tarun Mehta is bullish on FY26 with expectations of margin and market share gains

• Future Plans: Capital raised will be used for manufacturing expansion, R&D, and marketing

• Investor Sentiment: Stock closed 3.11% higher after earnings, indicating investor optimism

Conclusion

Ather Energy’s Q4 FY25 performance demonstrates that the company is progressively moving towards operational stability, supported by rising product demand, strategic use of capital, and a clear path toward profitability.

The success of the Rizta family scooter, along with a confident and forward-looking management, places Ather in a strong competitive position in India's booming electric mobility sector.

As the company builds its new factory, invests in innovation, and works toward EBITDA breakeven, the coming quarters could potentially unlock significant growth and shareholder value.

The Upcoming IPOs in this week and coming weeks are Integrity Belrise Industries, Integrity Infrabuild Developers, Accretion Pharmaceuticals, Wagons Learning.

The Current active IPO are Virtual Galaxy Infotech.

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