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, underscoring strong engagement with the company's software-led ecosystem.

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:

Network Expansion and Ecosystem Growth

Ather doubled its retail network during FY26, ending the year with 700 Experience Centres, up from 351 at the end of FY25. The service network expanded in tandem to approximately 548 service centres in FY26, nearly 2x its FY25 footprint. 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. Middle India saw the fastest growth, with market share rising to 17.3% in Q4 FY26 from 9.5% a year ago, while Rest of India grew to 12.1% in Q4 FY26 from 6.5% in Q4 FY25.

Balance Sheet and Cash Flow Highlights

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.

Corporate Developments and Outlook

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 for the quarter and full year ended March 31, 2026, was held on May 04, 2026, and the audio recording is available on the company's website in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Looking ahead, the company has flagged that commodity costs are expected to remain volatile and elevated in the short-term due to ongoing geopolitical factors, posing a potential headwind to margin management.

Nomura has initiated a Buy rating on Ather Energy with a target price of ₹1,120, highlighting robust growth visibility as the primary driver of its bullish stance on the electric two-wheeler manufacturer. The brokerage's positive outlook is anchored in the company's EL platform launch and an aggressive network expansion strategy, which together are expected to strengthen Ather Energy's competitive positioning in the rapidly evolving electric mobility landscape.

Strong Demand Dynamics and Growth Catalysts

Nomura notes that demand for Ather Energy's products is currently outpacing supply, a dynamic that underscores the brand's growing consumer acceptance and market traction. The brokerage further identifies rising fuel prices as an additional upside catalyst, which could accelerate the shift toward electric two-wheelers and directly benefit Ather Energy's volumes. These demand-side tailwinds, combined with the structural growth opportunity in India's electric vehicle segment, form the foundation of Nomura's constructive view.

The following table summarizes the key parameters of Nomura's rating and outlook on Ather Energy:

Near-Term Margin Pressure Acknowledged

While Nomura's overall stance remains positive, the brokerage acknowledges near-term EBITDA margin pressure, with the metric estimated at approximately -5.90% in 4QFY26. This margin headwind is viewed as a transient challenge rather than a structural concern, as the company continues to invest in scaling its platform and expanding its distribution footprint. Nomura's decision to maintain Ather Energy as its top pick in the two-wheeler segment reflects confidence that the medium-to-long-term growth trajectory outweighs near-term profitability constraints.

Top Pick Status in Two-Wheeler Segment

By designating Ather Energy as its top pick within the two-wheeler category, Nomura signals a high-conviction view on the company's ability to capitalize on India's electric mobility transition. The combination of a new product platform, expanding network reach, favorable demand-supply dynamics, and macro tailwinds from fuel price trends collectively support this positioning. The target price of ₹1,120 reflects Nomura's assessment of the company's growth potential as these catalysts play out.