Ather Energy Q1 2026 Earnings Call Highlights: Record Growth and Strategic Expansion

Ather Energy Ltd reported record growth in Q1 2026, with units sold up 100% YoY to 46,000, total income up 83% to?672 crores, and market share increasing from 7.6% to 14.3% YoY. The company added 95 stores, bringing the total to 446, and expanded its charging infrastructure to 4,000 points. However, it faced challenges due to the export ban on heavy rare earth magnets from China and reported a negative EBITDA margin of -16%.

Ather Energy Ltd reported significant growth in its first quarter of the fiscal year 2026, with units sold increasing by 100% year-on-year (YoY) to 46,000 units [2]. The company's total income surged 83% to ₹672.9 crore, while market share expanded from 7.6% to 14.3% YoY [2]. The company added 95 new stores, bringing the total to 446, and expanded its charging infrastructure to 4,000 points across India, Nepal, and Sri Lanka [2].

Despite these impressive gains, Ather Energy faced challenges due to the export ban on heavy rare earth magnets from China, which had previously posed a significant risk to its operations. The company reported a negative EBITDA margin of -16% for the quarter [2]. The company has shifted its focus to using light rare earth magnets, which are less susceptible to production risks [2].

The company's retail expansion has been instrumental in driving its growth. Ather added 95 new Experience Centres (ECs) during Q1, expanding its national footprint to 446 ECs [2]. This has enhanced accessibility and lowered breakeven volumes, ultimately improving operational efficiency [2]. The company's national market share nearly doubled to 14.3% during the period under review [2].

Non-vehicle revenue, comprising software, accessories, and services, contributed 12% of total income, benefitting from higher margins [2]. Ather's charging network also saw major growth, expanding to 4,032 points across India, Nepal, and Sri Lanka, up from 3,611 in the previous quarter [2].

Domestic brokerage firm HDFC Securities has revised Ather's valuation upward, applying a 4.0x EV/sales multiple (from 3.5x earlier), and set a target price of ₹475, maintaining a 'buy' rating on the stock [2].

References:
[1] https://www.business-standard.com/companies/quarterly-results/ather-energy-q1-results-loss-narrows-to-178-cr-on-higher-rizta-demand-125080400712_1.html
[2] https://economictimes.indiatimes.com/markets/stocks/news/ather-energy-shares-tumble-5-even-as-q1-net-loss-narrows-2yoy-should-you-buy/articleshow/123111307.cms