Ather narrows Q4 loss as operating margin improves for fourth quarter
Revenue grew +73.74% YoY against +46.64% expense growth, but the standalone loss still stood at Rs 100.23 cr.
Filed 04 May 2026, 11:10 IST · Ather Energy Ltd (ATHERENERG)
Key takeaways
- Standalone net loss narrowed 57.24% YoY to Rs 100.23 cr as revenue grew +73.74%, faster than expenses at +46.64%.
- Operating margin improved by 1.63 percentage points QoQ to -5.92%, marking its fourth straight quarterly improvement.
- The stock fell 0.09% on results day, versus a 5.45% median absolute move after its previous four results.
Price around the results
Revenue growth narrowed the standalone loss
Ather's standalone revenue rose +73.74% YoY and +23.18% QoQ, while expenses grew more slowly at +46.64% and +21.32%, respectively. That reduced the net loss 57.24% YoY, although the loss widened 18.48% QoQ to Rs 100.23 cr. EPS was Rs -2.62, compared with Rs -2.22 in Q3FY26 and Rs -9.00 in Q4FY25.
Operating improvement came despite higher depreciation
Operating margin improved by 19.58 percentage points YoY and 1.63 percentage points QoQ because revenue grew faster than expenses. Interest expense fell 36.98% YoY and 6.94% QoQ, partly offsetting depreciation growth of 14.60% YoY and 70.39% QoQ. Other income represented -39.02% of pre-tax profit because pre-tax profit was negative, while the 0.00% tax rate was unchanged from both comparison quarters and did not flatter the year-on-year improvement.
Margin improved for a fourth straight quarter but remains below peers
Operating margin has improved from -25.50% in Q4FY25 to -20.83%, -14.74%, -7.55% and -5.92% across the next four quarters. Among 93 Consumer Discretionary companies that have reported, Ather's margin was 20.73 percentage points below the 14.81% sector median and ranked sixth from the bottom.
Management points to wider distribution and planned capacity
The presentation said Ather had expanded its national presence to 700 stores, with existing dealers driving about 75% of expansion. Management said diversified procurement and inventory positioning protected gross margins, while higher memory costs pressured dashboard and connectivity bills of material. Management also said Factory 3.0 will have total annual capacity of 10 lakh units, with Phase-I commencing in Q3 FY27.
Initial market reaction was muted against a mixed history
The stock fell 0.09% on the results date after opening 1.19% higher, then gained 3.70% after five sessions and 6.76% after 30 sessions. Its previous four results produced two rises and two falls, with a median absolute move of 5.45%, making the immediate reaction unusually small but the later move within the range of its recent history.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,175 cr | ₹954 cr | +23.18% | +73.74% |
| Other income | ₹39 cr | ₹37 cr | +5.42% | +234.27% |
| Expenses | ₹1,244 cr | ₹1,026 cr | +21.32% | +46.64% |
| Operating profit | ₹-70 cr | ₹-72 cr | +3.36% | +59.64% |
| Operating margin (%) | -5.92% | -7.55% | — | — |
| Interest | ₹18 cr | ₹19 cr | -6.94% | -36.98% |
| Depreciation | ₹52 cr | ₹30 cr | +70.39% | +14.60% |
| Profit before tax | ₹-100 cr | ₹-85 cr | -18.48% | +57.24% |
| Tax | ₹0 cr | ₹0 cr | — | — |
| Net profit | ₹-100 cr | ₹-85 cr | -18.48% | +57.24% |
| EPS (₹) | ₹-2.62 | ₹-2.22 | -18.02% | +70.89% |
Operating margin of -5.92% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.09% | -0.60% |
| Next session | +0.32% | — |
| 5 sessions | +3.70% | +4.46% |
| 15 sessions | -1.44% | — |
| 30 sessions | +6.76% | — |
Volume on the results session was 0.62× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Factory 3.0 will have total annual capacity of 10 lakh units, with Phase-I commencing in Q3 FY27.
- Ather expanded its national presence to 700 stores, with existing dealers driving about 75% of EC expansion.
New initiatives
- Ather used diversified procurement and inventory positioning to protect gross margins.
Problems & risks
- Ather reported pressure on dashboard and connectivity bill of materials from higher memory costs.
What to watch
- Whether operating margin improves from -5.92% while depreciation growth moderates from +70.39% QoQ.
- Whether Factory 3.0's Phase-I commencement remains scheduled for Q3 FY27 against the stated 10 lakh-unit total annual capacity.
- Whether store expansion continues beyond 700 while existing dealers contribute about 75% of expansion.