Ather Energy Limited Q1 FY2027 Results
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Overview
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Detailed Analysis
Sentiment
Mixed
Executive Summary
Ather Energy FY2026: Revenue ₹3,671.76 Cr (vs ₹2,255.01 Cr YoY), Loss ₹(517.17) Cr (vs ₹(812.28) Cr YoY)
Ather Energy reported FY2026 revenue of ₹3,671.76 Cr, up from ₹2,255.01 Cr in FY2025 while the company remained loss-making with a FY2026 loss of ₹(517.17) Cr versus ₹(812.28) Cr a year ago. Total expenses were ₹4,335.21 Cr in FY2026, partly offset by other income of ₹151.32 Cr leading to a narrower loss; cash and cash equivalents stood at ₹111.94 Cr. The company raised equity via its IPO and parked sizeable proceeds in bank deposits and liquid investments while continuing capex for a new E2W factory. Management signals continued investment in manufacturing and R&D while the balance sheet...Revenue (FY2026)Page 16
₹3,671.76 Crvs ₹2,255.01 Cr in FY2025
Total income (FY2026)Page 16
₹3,823.08 Crvs ₹2,305.22 Cr in FY2025
Total expenses (FY2026)Page 16
₹4,335.21 Crvs ₹3,117.50 Cr in FY2025
Loss for the year (FY2026)Page 45
-₹517.17 Crvs ₹
Cash & cash equivalents (Mar 31, 2026)Page 15
₹111.94 Crvs ₹69.80 Cr as at Mar 31, 2025
Investments (mutual funds) (Mar 31, 2026)Page 39
₹552.01 Crvs ₹41.00 Cr as at Mar 31, 2025
Capital expenditure (cash outflow FY2026)Page 18
-₹506.07 Crvs ₹
Key Highlights
8
Revenue expanded to ₹3,671.76 Cr in FY2026 from ₹2,255.01 Cr in FY2025, driven by higher sales of finished products and services.
Loss narrowed to ₹(517.17) Cr in FY2026 from ₹(812.28) Cr in FY2025, reflecting higher other income and operating leverage despite rising expenses.
The company recorded total expenses of ₹4,335.21 Cr in FY2026, up from ₹3,117.50 Cr in FY2025, with notable increases across cost of material and other operating spends.
Ather parked IPO proceeds and term funds
Cash flow capex of ₹506.07 Cr was invested in property, plant & equipment and intangible assets in FY2026, up from ₹339.00 Cr in FY2025, consistent with factory and R&D build‑out.
Investments in mutual funds at fair value (FVTPL) increased to ₹552.01 Cr as at Mar 31, 2026 from ₹41.00 Cr, reflecting temporary deployment of surplus IPO proceeds into liquid funds.
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Key Highlights
8
Revenue expanded to ₹3,671.76 Cr in FY2026 from ₹2,255.01 Cr in FY2025, driven by higher sales of finished products and services.
Loss narrowed to ₹(517.17) Cr in FY2026 from ₹(812.28) Cr in FY2025, reflecting higher other income and operating leverage despite rising expenses.
The company recorded total expenses of ₹4,335.21 Cr in FY2026, up from ₹3,117.50 Cr in FY2025, with notable increases across cost of material and other operating spends.
Ather parked IPO proceeds and term funds
Cash flow capex of ₹506.07 Cr was invested in property, plant & equipment and intangible assets in FY2026, up from ₹339.00 Cr in FY2025, consistent with factory and R&D build‑out.
Investments in mutual funds at fair value (FVTPL) increased to ₹552.01 Cr as at Mar 31, 2026 from ₹41.00 Cr, reflecting temporary deployment of surplus IPO proceeds into liquid funds.
Warranty provision remained sizeable at a closing balance of ₹146.17 Cr as at Mar 31, 2026 (₹142.00 Cr at Mar 31, 2025), indicating ongoing post‑sales liability.
Company increased intangible assets under development to ₹237.57 Cr as at Mar 31, 2026 from ₹116.27 Cr, showing continued R&D / product development investment.
Guidance & Outlook
5
Management has allocated capital expenditure for establishment of an E2W factory in Maharashtra, signalling sustained manufacturing expansion plans.
A significant portion of IPO proceeds remains unutilised and temporarily invested: ₹1,615.00 Cr is temporarily in fixed deposits as at Mar 31, 2026, available for planned capex and initiatives.
Fresh equity raised via IPO added ₹2,617.82 Cr to securities premium during FY2026, strengthening equity and reducing leverage risk going forward.
Auditor notes and management assessments did not identify a material uncertainty about the company’s ability to meet liabilities within one year from the balance sheet date.
Company continues to invest in product development as shown by charge capitalised to intangible assets and ongoing additions to intangible assets under development, supporting medium‑term product roadmap.
Risks & Concerns
6
A large GST dispute remains
₹76.33 Cr relates to IGST FY2022-23 (₹70.34 Cr unpaid), posing contingent liability and potential cash outflow risk.
“FY 2022-23 76.33 70.34” — page 12
The company has unrecognised deferred tax assets of ₹1,276.88 Cr (mainly carry‑forward losses and unabsorbed depreciation), indicating uncertainty over future taxable profits to realise these assets.
Cash losses persist
Finance costs remain elevated at ₹82.20 Cr in FY2026, which will pressure margins if revenue growth slows or interest rates rise.
Supply‑chain disruption (rare earth magnets export ban) led management to defer recognition of incentives of ₹24.52 Cr, evidencing external regulatory/supply risks affecting incentives and revenue timing.
Warranty provision and refund liabilities (including off‑board charger refunds) and deposits held by IFCI create contingent cash obligations (deposit of ₹9.81 Cr noted against refund liabilities).
AI-generated analysis. May contain inaccuracies — verify against original sources.