(FE)
Electric two-wheeler (E2W) maker Ather Energy narrowed its net losses to Rs 234.4 crore in the fourth quarter of FY25, compared to Rs 283.3 crore in the same period last year. However, the losses widened sequentially from Rs 197.8 crore in Q3FY25.
Revenue from operations of the Bengaluru-based EV firm rose 29% year-on-year to Rs 676 crore in Q4FY25, driven by strong demand for the company’s top-selling ‘Rizta’ brand of family electric scooters.
For the full year, net loss stood at Rs 812.3 crore in FY25, down from Rs 1,059.7 crore in FY24. Annual revenue from operations grew 29% to Rs 2,255 crore in FY25. The adjusted gross margin more than doubled to 19% in FY25, with the company generating Rs 428 crore in adjusted gross margin—2.7 times higher than FY24.
The improvement in adjusted gross margin also boosted the company’s Ebitda margin, which improved by 1300 basis points to -23% in FY25 from -42% in FY24.
Tarun Mehta, executive director and CEO at Ather Energy, attributed the reduction in losses and margin improvement to the company’s strong focus on software sales and a R&D-led COGS (Cost of Goods Sold) reduction strategy.
“Our COGS per unit was down from Rs 148,900 to Rs 120,700 in FY25, a reduction of 19% over the course,” Mehta said, addressing the company’s first quarterly earnings call since listing on May 6. He added that the COGS reduction was partly due to the launch of Rizta, cooling down of lithium cell prices and contribution from engineering R&D.
Mehta added that its ‘Atherstack’ software sales offered strong growth and margin improvement, with revenue from software accounting for 6% of total revenue in FY25.
Ather Energy sold 47,411 units in Q4FY25 compared to 35,244 units in Q4FY24. Total vehicle sales rose 42% year-on-year to 155,394 units in FY25.
Mehta said work on the EL Platform, a new low-cost scooter platform, is progressing strongly and once completed, will drive strong market growth in the medium term.
“For now, Rizta will continue to drive a lot of success for us. It is already the majority of our sales today,” he added.
The company added 143 stores across the country in FY25, taking its total network to 351 retail stores. Mehta said 86 stores were added in the fourth quarter alone and that company has the capacity to add two stores per day.
