Ather Energy’s ₹2,880–₹2,980 crore IPO includes a fresh issue and an offer for sale. The proceeds will fund expansion, R&D, debt repayment, and charging network growth. Ather aims to strengthen its position in India’s competitive EV market
Company Overview
Establishment Year: 2013
Core Business Focus
Ather Energy Limited is a Bengaluru-based electric vehicle (EV) company founded in 2013 by IIT graduates Tarun Mehta and Swapnil Jain. The company specializes in designing and manufacturing intelligent electric scooters, including models like the Ather 450X, 450S, and the recently launched family-oriented Rizta. Ather also develops its own charging infrastructure, known as Ather Grid, and offers software solutions through its Atherstack platform.
🛠️ Work: What Ather Energy Does
Product Portfolio:
- Electric Scooters: Ather’s lineup includes the 450X, 450S, and the Rizta, catering to various segments of the market.
- Charging Infrastructure: Ather Grid is the company’s proprietary charging network, enhancing the EV ecosystem.
- Software Solutions: Atherstack provides ride-assist features and other software services, contributing to 6% of the company’s revenue.
Manufacturing Capabilities:
- Ather operates manufacturing facilities in Whitefield, Bangalore, and Hosur, Tamil Nadu, with a combined annual capacity of 420,000 units. Currently, these facilities are operating at 39% capacity utilization.
💪 Strengths: What Sets Ather Apart
Technological Innovation:
- Ather’s scooters are known for their high performance and feature-rich design, focusing on technology and user experience.
- The company has developed its own software stack, Atherstack, enhancing the functionality and connectivity of its vehicles.
Brand Positioning:
- Ather is perceived as a premium and aspirational EV brand in India, attracting a tech-savvy customer base.
Vertical Integration:
- With in-house R&D and manufacturing, Ather maintains greater control over quality and innovation, allowing for rapid product development and customization.
⚠️ Risks: Challenges Facing Ather Energy
Financial Performance:
- Ather has consistently reported losses and negative cash flows since its inception. For the nine months ending December 2024, the company posted a net loss of ₹577.9 crore.
Market Competition:
- Despite being an early entrant in the Indian e-scooter market, Ather trails behind larger rivals like Ola Electric, TVS Motor, and Bajaj Auto in terms of sales.
IPO Valuation Concerns:
- Ather’s initial public offering (IPO) valuation was slashed by 44% from its original target, raising concerns about investor confidence and market conditions.
In summary, Ather Energy stands out for its technological innovation, premium brand positioning, and vertical integration. However, the company faces significant challenges, including financial losses, intense market competition, and valuation concerns. Investors and stakeholders should weigh these factors carefully when considering involvement with Ather Energy.
Financial Analysis of Ather Energy Limited (FY2022-FY2024)
| Particulars | FY2022 (₹ crore) | FY2023 (₹ crore) | FY2024 (₹ crore) |
| Revenue | 408.9 | 1780.9 | 1753.8 |
| Profit (Loss) | -344.1 | -864.5 | -1059.7 |
| Total Assets | 818.6 | 1976.8 | 1913.5 |
Revenue
- FY2022: ₹408.9 crore
- FY2023: ₹1780.9 crore
- FY2024: ₹1753.8 crore
Analysis:
Revenue grew sharply from FY2022 to FY2023, indicating strong sales growth. However, in FY2024, revenue slightly declined compared to FY2023, signaling some pressure or stabilization in demand.
Profit (Loss)
- FY2022: ₹-344.1 crore
- FY2023: ₹-864.5 crore
- FY2024: ₹-1059.7 crore
Analysis:
Despite revenue growth, losses have widened every year, mainly due to higher operational costs, expansion efforts, and competitive pricing. Profitability remains a major challenge for Ather.
Total Assets
- FY2022: ₹818.6 crore
- FY2023: ₹1976.8 crore
- FY2024: ₹1913.5 crore
Analysis:
Asset base expanded significantly in FY2023, supporting business expansion and infrastructure growth. In FY2024, assets slightly declined, suggesting a controlled capital expenditure phase or asset revaluation.
✍️ Summary
- Ather Energy has shown strong revenue growth but is struggling with increasing losses.
- The asset base has nearly doubled from FY2022 to FY2023, highlighting significant investments.
- The upcoming IPO aims to address these challenges by funding expansion, product development, and debt repayment.
