Ather narrows loss as revenue growth outpaces cost growth
Standalone operating margin improved 18.11 percentage points YoY to -2.72%, but remained 16.15 points below the sector median.
Filed 03 Aug 2026, 15:10 IST · Ather Energy Ltd (ATHERENERG)
Key takeaways
- Standalone operating margin improved 18.11 percentage points year on year to -2.72%, but Ather remained loss-making.
- Revenue grew 88.79% year on year while expenses rose 60.48%, narrowing the net loss to Rs 50.87 cr.
- Ather's operating margin was 16.15 percentage points below the 13.43% median for 65 reported Consumer Discretionary peers.
Price around the results
Revenue growth narrows Ather's standalone loss
Revenue grew 88.79% year on year, faster than expenses at 60.48%, driving an 18.11 percentage-point improvement in operating margin. The faster revenue growth reduced the standalone net loss to Rs 50.87 cr from Rs 178.2 cr a year earlier. Sequentially, revenue rose 3.60% while expenses increased 0.46%, improving operating margin by 3.20 percentage points.
Lower costs helped, but financing costs rose sequentially
Interest expense increased 20.10% quarter on quarter, partly offsetting the operating improvement, while depreciation declined 24.83%. Other income's reported share of pre-tax profit was -84.00%, reflecting that it offset part of the loss rather than supporting positive operating earnings. The tax rate remained 0.00%, so tax did not flatter the quarter's net profit.
Margin recovery continues but still trails peers
Operating margin has improved in every quarter shown, from -25.50% in Q4FY25 to -2.72% in Q1FY27. Despite that six-quarter recovery, Ather's margin was 16.15 percentage points below the 13.43% median across 65 Consumer Discretionary peers that had reported. The company ranked sixth from the bottom on this measure.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,217 cr | ₹1,175 cr | +3.60% | +88.79% |
| Other income | ₹43 cr | ₹39 cr | +9.26% | +50.99% |
| Expenses | ₹1,250 cr | ₹1,244 cr | +0.46% | +60.48% |
| Operating profit | ₹-33 cr | ₹-70 cr | +52.44% | +75.36% |
| Operating margin (%) | -2.72% | -5.92% | — | — |
| Interest | ₹22 cr | ₹18 cr | +20.10% | -10.50% |
| Depreciation | ₹39 cr | ₹52 cr | -24.83% | -19.04% |
| Profit before tax | ₹-51 cr | ₹-100 cr | +49.25% | +71.45% |
| Tax | ₹0 cr | ₹0 cr | — | — |
| Net profit | ₹-51 cr | ₹-100 cr | +49.25% | +71.45% |
| EPS (₹) | ₹-1.33 | ₹-2.62 | +49.24% | +73.40% |
Operating margin of -2.72% compares with a Consumer Discretionary sector median of 13.43% across 65 peers that have reported Q1FY27.
What to watch
- Whether operating margin improves beyond -2.72% in the next quarter.
- Whether expense growth remains below the 88.79% year-on-year revenue growth rate.
- Whether interest expense reverses its 20.10% quarter-on-quarter increase.