The National Investment and Infrastructure Fund (NIIF), a government-backed entity, has announced its intention to sell a significant stake in Ather Energy , the Bengaluru-based electric two-wheeler manufacturer. This move comes as Ather Energy continues to strengthen its position in the competitive electric vehicle market.

Stake Sale Details

NIIF has offered to sell 89 lakh shares, representing a 2.34% equity stake in Ather Energy. The proposed sale is valued at Rs 551.80 crore, with shares priced at Rs 620 each. This price represents a 1.4% discount to Ather Energy's closing price on Wednesday.

HSBC Securities and Axis Capital have been appointed to manage this transaction.

NIIF's Current Holdings

Prior to this offer, NIIF held a 4.67% stake in Ather Energy, valued at approximately Rs 1,118 crore as of September. Additionally, NIIF's affiliate, the India Japan Fund, owns a 5.91% stake in the company.

Ather Energy's Market Performance

Ather Energy has been making significant strides in the electric two-wheeler market:

• Achieved the third position in the market with a 17.2% share in September, up from 14.3% the previous year
• Quarterly loss narrowed to Rs 154 crore from Rs 197 crore
• Revenue increased by 54% to Rs 900 crore

Stock Performance

Ather Energy's shares closed 4.7% lower at Rs 629 on the BSE. However, it's worth noting that the stock has gained 108% since its debut on the stock market in May.

Upcoming Investor Meetings

According to the latest LODR data, Ather Energy's management team is scheduled to meet with various institutional investors and analysts in Mumbai from November 17 to 19. These meetings will be based on publicly available information, and no unpublished price-sensitive information will be shared.

This stake sale by NIIF and Ather Energy's recent market performance highlight the dynamic nature of the electric vehicle sector in India. As the industry continues to evolve, investors and market watchers will be keenly observing Ather Energy's growth trajectory and strategic moves in the competitive landscape.

Ather Energy , a leading electric two-wheeler manufacturer in India, has reported robust financial results, demonstrating significant growth in market share, sales volume, and operational efficiency.

Key Financial Highlights

• Ather Energy achieved 67% year-over-year growth in unit sales, reaching 66,000 units.
• The company captured a 17.4% market share, up from 12.1% in the previous year.
• EBITDA margins improved by 1,100 basis points year-over-year through scale and cost optimization efforts.
• Total income surged to ₹940.70 crore, marking a 57% year-on-year increase and a 40% quarter-on-quarter growth.
• Adjusted Gross Margin improved to 22%, up by approximately 300 basis points year-on-year.
• Loss after tax stood at ₹154.10 crore for the quarter.

Market Performance

Ather Energy significantly strengthened its position in the Indian electric two-wheeler market:

• The company maintained its leadership in South India with a 25% market share.
• Middle India emerged as the fastest-growing region, with market share rising to 14.6% from 8.8% year-on-year.

Operational Expansion

The company continued its aggressive retail expansion strategy:

• Added 78 new Experience Centres during the quarter, bringing the total to 524 across India.
• Plans to expand its network to 700 touchpoints by FY26.
• Expanded presence in both established metro markets and emerging tier-2 and tier-3 cities.

Product and Technology Developments

Ather Energy introduced several enhancements to its product ecosystem:

• Rolled out AtherStack 7.0, introducing new software features to improve riding experience and connectivity.
• Expanded the Ather Grid network to 4,322 fast-charging points across India, Nepal, and Sri Lanka.

Management Commentary

Tarun Mehta, Executive Director & CEO of Ather Energy, stated, "Q2 has been a strong quarter, with steady growth in market share and continued progress on our path to profitability. We saw continued improvement in EBITDA margin with improving operating leverage. Our strategic focus on Middle India has delivered results, with several states scaling up rapidly."

Regulatory Note

The company disclosed that due to China's export ban on certain heavy rare earth magnets, there were temporary adjustments in the manufacturing process for traction motors. This may affect Ather's ability to submit demand incentive claims under the PM E-DRIVE scheme, leading to a deferral of revenue recognition to the extent of ₹19.20 crore for specific vehicles sold during the quarter.

Ather Energy's results demonstrate the company's strong execution in expanding its market presence while improving operational efficiency. The significant growth in market share across various regions, particularly in Middle India, highlights the increasing adoption of electric two-wheelers and Ather's competitive positioning in the market.