IPO-Bound Ather Trims Loss By Over 25% In First Nine Months Of FY25

SUMMARY

The EV major has cut the size of its IPO, which will be open for public bidding from April 28 to April 30

Ather’s revenue from operations zoomed 28.32% to INR 1,578.9 Cr in the three quarters of FY25 from INR 1,230.4 Cr in the same period last year

Meanwhile, total expenses rose 11.7% to INR 2,195.3 Cr during the period under review from INR 1,855.5 Cr in the nine months ended December 2023

IPO-bound EV major Ather Energy managed to reduce its net loss for the nine-months ended December 2024 by 25.56% to INR 577.9 Cr from INR 776.4 Cr in the year-ago period.

The company disclosed the financials for the first three quarters of FY25 in its red herring prospectus filed with SEBI today. The EV major has cut the size of its IPO, which will be open for public bidding from April 28 to April 30.

Ather’s revenue from operations zoomed 28.32% to INR 1,578.9 Cr in the three quarters of FY25 from INR 1,230.4 Cr in the same period last year, as it witnessed a 45% year-on-year growth in its EV sales to 1.08 Lakh units.

Meanwhile, EBITDA loss improved to INR 370 Cr during the period under review from INR 422.9 Cr a year ago.

Founded in 2013 by Tarun Mehta and Swapnil Jain, Ather is one of the leading Indian two-wheeler EV manufacturers. It also manufactures its own battery packs and operates its charging network.

Where Did Ather Spend?

Ather’s total expenses rose 11.7% to INR 2,195.3 Cr during the period under review from INR 1,855.5 Cr in the nine-months ended December 2023.

Cost of Materials Consumed: This was the biggest expense for the company, rising 15.41% to INR 1,306.9 Cr from INR 1,132.3 Cr in the year-ago period.

Employee Benefit Expenses: The EV major spent INR 303.3 Cr on employee expenses in the first nine months of FY25, an increase of 41% from INR 215.1 Cr in the corresponding period last year.

R&D Expenses: Ather’s expenditure under this head increased to INR 238.8 Cr during the period from INR 163.7 Cr in the year-ago period.

Customer Complaints Up 2.5X

The number of customer complaints related to its EVs surged 2.5X to 2,383 between April 1 and December 1, 2024 from 926 in the year-ago period.

Of these, 68 and 63 complaints were battery-related issues for the nine-month period ended 2024 and 2023, respectively.

In full financial years 2024, 2023, and 2022, the complaints stood at 1,341, 1,631, and 115, respectively.

“We have established a standard procedure to effectively process and handle customer complaints. We monitor trends in customer complaints and turnaround times for complaint resolutions,” the company informed in its RHP.