Ather Energy Limited filed its Monitoring Agency Report for the quarter ended March 31, 2026, with the stock exchanges on May 04, 2026, pursuant to Regulation 32 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Regulation 41 of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The report was prepared by CARE Ratings Limited, which serves as the designated Monitoring Agency for the company's IPO proceeds aggregating to Rs. 2626.00 crore. The IPO was a public issue of equity shares conducted from April 28, 2025 to April 30, 2025. The company's promoters are Tarun Sanjay Mehta, Swapnil Babanlal Jain, and Hero Motocorp Limited, and it operates in the Automobiles and Auto Components — Automobiles sector.

IPO Proceeds Utilisation as at March 31, 2026

As at the end of the quarter ended March 31, 2026, cumulative utilisation of IPO proceeds reached Rs. 1008.93 crore, with Rs. 194.98 crore deployed during the quarter alone. A total of Rs. 1617.07 crore remains unutilised. The monitoring agency confirmed that all IPO proceeds were used for objects as stated in the prospectus, all payments were routed through the monitoring agency account, and no deviations from the offer document were observed. There was also no change in the means of finance for the disclosed objects, and no major deviation was noted compared to the previous monitoring agency report dated November 10, 2025.

The table below summarises the progress in utilisation across all objects as at March 31, 2026:

Cost Revisions and Object-wise Commentary

Two line items saw minor revisions in their allocated amounts following a Board of Directors resolution dated February 02, 2026. Issue expenses were revised downward from Rs. 116.60 crore to Rs. 110.00 crore on account of actual issue expenses being lower than originally estimated. The resultant difference was reallocated to general corporate purposes, raising that allocation from Rs. 492.20 crore to Rs. 498.80 crore. All other objects — E2W factory capital expenditure (Rs. 927.20 crore), repayment of borrowings (Rs. 40.00 crore), research and development (Rs. 750.00 crore), and marketing initiatives (Rs. 300.00 crore) — remained unchanged. Total gross proceeds remain at Rs. 2626.00 crore.

Key expenditure details for the quarter are as follows:

• E2W Factory (Maharashtra): Rs. 60.83 crore deployed during the quarter towards civil work, raw materials, paint robots, battery pack assembly lines, overhead conveyor systems, assembly line systems, paint circulation systems, and management consultancy for construction tracking and quality checks.
• Research & Development: Rs. 69.05 crore utilised during the quarter, comprising Rs. 22.01 crore on manpower costs in the R&D department and Rs. 47.04 crore on non-manpower costs including testing and measuring equipment, vehicle lamp testing, and designing services.
• Marketing Initiatives: Rs. 22.52 crore paid to the marketing agency under a service agreement as mentioned in the prospectus.
• General Corporate Purposes: Rs. 42.58 crore utilised during the quarter, comprising Rs. 42.57 crore towards purchase of raw materials and Rs. 0.01 crore towards employee-related expenses and other operating expenses.
• Repayment of Borrowings: Fully utilised; completed as on September 30, 2025.
• Issue Expenses: No utilisation during the quarter.

Factory 3.0 — Implementation Delay and Status

The monitoring agency noted a delay in the capital expenditure object related to the establishment of the E2W factory (Factory 3.0) in Maharashtra. As per the offer document, Rs. 705.50 crore was to be deployed in FY26; actual utilisation stood at Rs. 139.63 crore. The delay is attributed to the receipt of an Environmental Clearance in September 2025, which was not originally required at the time of the prospectus filing dated April 30, 2025. This shifted the construction start from May 2025 to September 2025. Consequently, the expected commencement of production at Factory 3.0 has been revised to October 2026 from the originally envisaged July 2026. As per management, the overall project completion timeline of March 2027 remains intact. As at March 31, 2026, the company has spent 21% (including land cost) of the total project cost and has raised purchase orders worth 67% of the total project cost. Pre-construction government approvals obtained include Consent to Establish, Town and Country Planning Approvals, GST Registration, ESI Registration, and Environmental Clearance (received during Q2FY26).

A delay was also noted in marketing initiatives expenditure, with Rs. 90.44 crore paid against the FY26 target of Rs. 150.00 crore. The company noted that total marketing incurred in FY26 amounted to Rs. 128.03 crore (comprising Rs. 90.44 crore paid and Rs. 37.59 crore payable), representing over 85% of the Rs. 150.00 crore outlined in the offer document. The balance is expected to be utilised in FY27. Similarly, general corporate purposes deployment of Rs. 140.30 crore has been deferred from FY26 to FY27 on account of optimised cash management.

Deployment of Unutilised Proceeds

The unutilised IPO proceeds of Rs. 1617.07 crore as at March 31, 2026 have been deployed across fixed deposits with Axis Bank, Kotak Bank, and IDFC Bank, along with residual balances in the HSBC Bank Monitoring Account and Axis Bank Public Offer Account. The table below presents a summary of the key fixed deposit instruments:

Total earnings on the deployed proceeds, including interest received and interest accrued, amounted to Rs. 91.20 crore, with a total market value of Rs. 1626.13 crore as at the end of the quarter. The monitoring agency confirmed no conflict of interest in its relationship with the issuer while monitoring and reporting the utilisation of IPO proceeds.

Ather Energy Limited has announced the re-appointment of M/s. Protiviti India Member Private Limited as the company's internal auditors for the financial year 2026-27. The decision was made during a board meeting held on April 23, 2026, following recommendations from the Audit Committee.

Board Meeting Details

The Board of Directors convened on April 23, 2026, to deliberate on various matters including the internal auditor appointment. The meeting commenced at 02:30 PM (IST) and concluded at 04:10 PM (IST). The re-appointment was formally approved during this session.

About Protiviti India

Protiviti India Member Private Limited brings substantial expertise to Ather Energy's internal audit function. The firm is positioned as one of the largest independent global consulting firms and operates as a subsidiary of Robert Half International, which is NYSE listed and part of the S&P 500 Index.

The consulting firm specializes in several core areas of expertise:

• Risk Management
• Process Advisory services
• Internal Audits
• ICFR (Internal Control over Financial Reporting)
• Compliance Audits
• SOX compliance
• Technology Consulting
• Business Consulting

Protiviti's Market Presence

Protiviti maintains a significant presence in the Indian market, serving a diverse client base across various sectors. The firm's credentials include:

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company provided detailed information as required under Schedule III Part A of the SEBI Listing Regulations, ensuring full transparency regarding the appointment process.

The re-appointment reflects Ather Energy's commitment to maintaining robust internal audit practices and regulatory compliance. With Protiviti's extensive experience in risk management and process advisory services, the partnership is expected to strengthen the company's internal control framework for the upcoming financial year.