Ather Energy Q1 FY27 Results (NSE: ATHERENERG)
Signal: Loss narrowed
The read
Q1FY27 marks an inflection point: Ather turned EBITDA-positive for the first time, with revenue surging 89% YoY and losses narrowing by 71%. Operating leverage from fixed cost containment (employee costs flat YoY) and lower depreciation drove the improvement. However, gross margin compressed sequentially and the company remains net-loss making. Post-quarter QIP of ₹1,300 Cr and proposed preferential issue strengthen the balance sheet for further growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,216.92 Cr | 88.8% | 3.6% |
| EBIT | ₹-29.51 Cr | 80.9% | |
| Net profit | ₹-51.09 Cr | 71.3% | |
| EPS | ₹-1.33 | 74.6% | |
| EBIT margin | 0.8% |
P&L walk
Revenue scaled 89% YoY, driving EBITDA positive for the first time; net loss cut by over two-thirds despite sequential gross margin compression.
Key positives
- Revenue grew 88.8% YoY to ₹1,217 Cr, driven by strong demand for EV two-wheelers.
- EBITDA turned positive at ₹9.5 Cr (0.8% margin) vs negative ₹106 Cr in Q1FY26, a ₹115 Cr improvement.
- Net loss narrowed 71% YoY to ₹51 Cr from ₹178 Cr, with operating leverage from flat employee costs and lower depreciation.
- Employee cost as % of revenue halved to 9.7% from 18.4% YoY.
Key concerns
- Gross margin compressed sequentially to 19.7% from 22.9% in Q4FY26, indicating potential input cost pressure or mix shift.
- Company still loss-making at PAT level; reliance on other income (₹43 Cr) to offset operating losses.
- No volume or average selling price disclosure in this filing, making unit economics opaque.
Research and educational content only. Not investment advice.