Ather Energy Limited allotted 3,09,372 equity shares of face value INR 1/- each to eligible employees on May 08, 2026, pursuant to a circular resolution passed by its Board of Directors on the same date. The allotment was made to ESOP holders who exercised their stock options under the Ather Energy ESOP 2025 Plan. The newly issued shares rank pari-passu with the existing equity shares of the company in all respects.

Share Capital Impact

Following this allotment, the paid-up share capital of Ather Energy has been revised upward. The key details of the capital change are presented below:

Allotment Details

The requisite disclosures under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 have been filed by the company. The key parameters of this allotment are as follows:

The intimation was submitted to both the National Stock Exchange of India Ltd and BSE Limited, as required under applicable listing regulations. The disclosure was signed by Puja Aggarwal, Company Secretary and Compliance Officer (Membership No: A49310), on May 08, 2026.

Ather Energy delivered its strongest-ever performance in FY26, driven by record volumes, market share expansion, and significant improvement in financial metrics. The company sold 2,62,942 units during the year, up 69% year-on-year, with Q4 FY26 achieving its highest-ever quarterly volumes of 83,418 units, up 76% YoY. Market share climbed to 18.6% for the year, with South India maintaining leadership at 23.5% in Q4 FY26. The Board of Directors approved the audited financial results for the quarter and full year ended March 31, 2026, at a meeting held on May 04, 2026. In compliance with Regulation 47 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company subsequently published the audited financial results as a newspaper advertisement on May 05, 2026, in Financial Express (English) and Vishwavani (Kannada), as confirmed by Company Secretary and Compliance Officer Puja Aggarwal (Membership No: A49310).

Operational and Financial Performance

For FY26, total income grew 66% to ₹3,823 crore from ₹2,305.22 crore in the previous year, while revenue from operations surged to ₹3,671.76 crore from ₹2,255.01 crore. Adjusted Gross Margin (AGM) jumped 116% YoY to ₹925 crore, with margin improving to 24% of total income, up approximately 500 basis points YoY. EBITDA losses reduced significantly to ₹257 crore from ₹531 crore in FY25, with margin improving to (6.7%) from (23%), reflecting a ~1,630 bps YoY improvement driven by operating leverage and disciplined cost management.

The company's net loss narrowed to ₹517 crore from ₹812 crore in FY25, with loss margin improving to (14%) from (35%). Non-vehicle revenue, comprising software subscriptions, charging, accessories, spares, and service, rose to 13% of total income in FY26, reflecting deeper ecosystem penetration. In Q4 FY26, 93% of customers opted for AtherStack Pro, the highest-ever Pro-Pack attach rate, underscoring strong engagement with the company's software-led ecosystem. Regional attach rates vary, with South India leading — Kerala at approximately 98-99% — followed by Middle India and Rest of India at 81%, reflecting a consistent ramp-up as newer stores and cities mature.

Quarterly Performance Summary

Ather Energy's revenue from operations for Q4 stood at ₹1,174.66 crores, compared to ₹676.08 crores in Q4 of the previous year and ₹953.64 crores in Q3 of the current year. The Adjusted Gross Margin for Q4 FY26 expanded by approximately 700 basis points to 25%, compared to 18% in Q4 FY25. EBITDA margin narrowed to (2.5%) in Q4 FY26, a ~2,080 bps improvement YoY, with EBITDA loss of ₹30 crore. The following table presents the key financial metrics across periods:

Product Strategy and Market Expansion

Rizta, Ather's newer product, emerged as the primary growth engine in FY26, accounting for approximately three-quarters of total sales and driving the company's market share improvement of approximately 1,100 basis points — from around 8% to 18.6% in Q4 FY26. The company doubled its retail network during FY26, ending the year with 700 Experience Centres, up from 351 at the end of FY25, with 75% of new stores opened through existing dealer partners. The service network expanded in tandem to approximately 548 service centres, nearly 2x its FY25 footprint. Middle India — comprising Chhattisgarh, Gujarat, Madhya Pradesh, Odisha, and Maharashtra — saw the fastest growth, with market share rising to 17.3% in Q4 FY26 from approximately 4% at the start of FY25. Rest of India grew to 12.1% in Q4 FY26 from 6.5% in Q4 FY25, while South India expanded from 13% to 23%.

Looking ahead, the company is developing the EL platform, targeting the mass electric two-wheeler segment priced between ₹1 lakh and ₹1.25 lakh — a segment where Ather currently has no presence. The EL platform is designed with a substantially improved cost structure, incorporating steel frames in place of aluminum and a simpler transmission system, reducing dependence on expensive commodities. Variants of EL are also expected in the mass premium and potentially premium segments. Ather also disclosed a new motorcycle platform called Zenith for future motorcycle development, separate from the EL scooter platform. The following table summarises key product and market metrics:

Factory Expansion and Capacity Scale-Up

Ather is currently operating its Hosur facility at 90-95% of its designed capacity of 35,000 units per month, running multiple shifts. To address supply constraints and support the EL platform ramp-up, the company is building Factory 3.0 in Chhatrapati Sambhajinagar (AURIC), its largest facility to date. Phase 1 of the factory is expected to commence trial production before the end of the current calendar year, with full Phase 1 capacity of 42,000 units per month targeted to be operationalised before end of the current financial year. The total planned capacity for the facility is 10 lakh units, with 5 lakh units in Phase 1. The plant will feature higher vertical integration, including battery pack assembly, transmission assembly, painting, electronics assembly, and CED coating in-house, and is located within a vibrant supplier ecosystem in the Aurangabad-Chhatrapati Sambhajinagar region.

Commodity Headwinds and Pricing Response

Supply chain pressures intensified through FY26, with commodity inflation estimated at 40-50% across key inputs. Lithium prices rose from approximately $8 per kilogram to approximately $24 per kilogram, with NMC-related commodities including nickel, manganese, and cobalt also seeing sharp increases. Battery cell costs, which previously represented 15-16% of the bill of materials, have risen as a proportion of total BOM. Aluminum costs have also increased materially, a headwind the company expects to partially mitigate through the EL platform's reduced aluminum content. In response, Ather took a price hike of approximately ₹1,000 to ₹1,500 in Q4 FY26, followed by a blended price hike of approximately ₹2,500 in April, bringing total price increases in the current calendar year to approximately ₹4,000. The company also employed strategic procurement measures including pre-buying, inventory planning, and engineering for alternate technologies such as LFP batteries and light rare earth magnets to manage cost pressures. Management noted that commodity costs are expected to remain volatile and elevated in the short term, with a further price hike under consideration.

Network, Ecosystem, and Brand Developments

Ather's charging ecosystem scaled significantly, with customers now having access to over 6,000 charging points powered by LECCS, making it the largest fast charging network for two-wheelers in India. The LECCS charging protocol has evolved into an industry standard, with more than 20 stakeholders — including OEMs, charge point operators, and suppliers — joining the newly created LEAF consortium, which is positioning LECCS as both a national and international charging standard. On the brand front, internal tracking data indicates awareness increased approximately 100% over the 12 months from December 2024 to December 2025, consideration scores rose 31%, and preference improved 50%. Ather also became the number one searched EV brand across India in Q4 FY26. The company launched the "It's Easy on an Ather" marketing campaign in Q4, highlighting product experiences such as skid control, fast charging, and range prediction accuracy.

Balance Sheet, Cash Flow, and Corporate Developments

Total assets expanded substantially to ₹4,721.51 crores as at March 31, 2026, compared to ₹2,100.61 crores as at March 31, 2025, driven primarily by the IPO proceeds. Total equity rose sharply to ₹2,572.63 crores from ₹492.99 crores. Current borrowings declined to ₹145.65 crores from ₹332.99 crores, indicating partial deleveraging. For FY26, Ather Energy generated net cash from operating activities of ₹31.89 crores, a significant turnaround from net cash used in operating activities of ₹720.70 crores in FY25. The company completed its IPO of 9,28,67,945 equity shares at ₹321 per share, aggregating to ₹2,626.00 crores. As at March 31, 2026, ₹1,008.93 crores of IPO proceeds had been utilised, with ₹1,617.07 crores remaining unutilised.

The Board approved the re-appointment of M/s. Deloitte Haskins & Sells, Chartered Accountants, as Statutory Auditors for a second term of five consecutive years, commencing from FY27 till FY31, subject to shareholder approval. During the year, the Board approved the incorporation of two wholly owned subsidiaries — a Corporate Agent subsidiary to offer insurance policies, and a Hong Kong-based subsidiary to support procurement functions. Additionally, China's export ban on certain heavy rare earth magnets caused supply chain disruptions, leading the company to defer revenue recognition of ₹24.52 crores for the full year on vehicles affected by temporary deviations in the manufacturing process for traction motors. The earnings call transcript for the quarter and full year ended March 31, 2026, is available on the company's website in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.