Ather Energy’s loss widens by 22% to Rs1,060cr

Losses of Ather Energy, a Bengaluru-based electric vehicle company, have widened by 22 per cent, amounting to Rs1,060 crore, while its operating revenue experienced a marginal decline of 1.5 per cent, totaling Rs1,753.8 crore compared to the previous fiscal year.

The dip can be largely attributed to a reduction in government subsidies, which has significantly affected consumer pricing and, subsequently, revenue generation.

The reduction in subsidies led to an increase in retail prices for Ather’s electric two-wheelers (E2Ws), ranging from Rs20,434 to Rs30,285.

As noted by the company, “This contributed to a slight decrease in our revenue from operations.” Such market responses highlight the delicate balance that electric vehicle manufacturers must maintain between production costs, pricing strategies, and external economic factors.

In FY24, Ather Energy’s expenses reached a staggering Rs2,674.2 crore, with a significant portion allocated to the cost of materials consumed, which saw an increase of 2.7 per cent year-on-year to Rs1,579.2 crore.

Competitive market

Furthermore, the company’s employee benefit expenses rose by 10.3 per cent to Rs369.2 crore, reflecting its commitment to scaling operations in a competitive market.

Despite these challenges, Ather Energy recorded a remarkable growth of 335 per cent in operating revenue in FY23, reaching Rs 1,780.9 crore.

The past success underscores the firm’s potential for future growth and resilience in the fast-evolving electric vehicle sector. Notably, in recent developments, Ather secured secured $71 million led by the National Investment and Infrastructure Fund (NIIF), taking its valuation to $1.3 billion and making it a new unicorn.

The funding, along with its IPO plans, aims to bolster research and development and establish a new manufacturing facility, positioning the company for sustained growth and innovation.