Ather Energy shares decline as company’s net profit narrows to ₹234 crore: Key things to know from Q4 earnings

The electric two-wheeler maker, which made its debut on stock exchanges this month, said it sold 47,411 two-wheelers during the March quarter as against 35,244 units retailed in the corresponding quarter of FY 24, registering a year-on-year growth of 35%.

During Tuesday's early session, shares of the company were trading at ₹306.05 apiece, falling 1.13% on the National Stock Exchange.

“FY25 has been a year of robust growth, with strong increases in both volume and profitability, year-on-year. On the back of our new product launches, we saw strong volume growth of 42%, and our continued investments in engineering and R&D delivered a strong improvement in margins," Tarun Mehta, Executive Director and CEO at Ather Energy, said in a statement.

Here are key things to know from Q4 earnings:

1. Arther Energy’s income from operations during the quarter grew 29.5% to ₹676.1 crore from ₹523.4 crore a year ago. For 2024-25, Ather Energy posted a net loss of ₹812 crore compared to ₹1,059.70 crore a year ago.

2. Adjusted gross margin for Q4 FY25 stood at 18% as against 9% in the same quarter of the year earlier, while EBITDA was seen at negative 23% in the previous quarter vis-à-vis negative 42% in Q4 FY24.

3. The company expanded its retail footprint by 32% in the March quarter of the previous fiscal year alone and thereby closed the year with 351 experience centres across India. This helped drive deeper market penetration, especially in North and West India, where Rizta, as a convenient scooter form factor, has been gaining share rapidly, Ather said.

4. Adjusted gross margins doubled, growing by approximately 1,000 basis points, and that helped reduce EBITDA losses by approximately 1,300 basis points. Over the preceding year.

5. "Our goal is to ensure a strong presence across the non-South markets as well. With the right form factor, we are very bullish about scaling our product portfolio now," said Ather Energy Chief Financial Officer Sohil Parekh to PTI.

6. Rizta has seen an exceptional response since its deliveries began in the second quarter of FY25, and now it contributes as much as 57% of the Ather stroke volume. At the close of the fiscal year, it became a significant driver of growth in a very short span of time.

7. "We enter this FY26 with a lot of optimism. This optimism is based on the last few quarters with already strong growth based on the 450. The Rizta coming in changed our trajectory of growth starting in July of last year, and it allowed us to consolidate and solidify our position in the south," said Ravneet Phokela, Chief Business Officer at Ather Energy.