Hey there, EV fans! Buckle up because Ather Energy, one of India’s leading electric two-wheeler brands, is making some serious noise in the electric vehicle (EV) space. The Bengaluru-based company just shared its financial results for the first nine months of FY25, and let me tell you, the numbers are electrifying! Ather Energy has slashed its net losses by an impressive 25.56% and boosted its revenue significantly. Plus, there’s big IPO news—Ather Energy has cut the size of its upcoming public offering, which is set to light up the market soon. Curious? Let’s dive into the details and see what Ather Energy is up to!
A Glimpse at Ather Energy’s FY25 Performance
Ather Energy is revving up for its stock market debut, and it’s looking sharper than ever. According to its red herring prospectus (RHP) filed with SEBI, Ather Energy reported a net loss of INR 577.9 Cr for the nine months ending December 2024, down from INR 776.4 Cr in the same period of FY24. That’s a solid 25.56% reduction in losses! On top of that, Ather Energy has cut the size of its IPO, which will be open for public bidding from April 28 to April 30, 2025. This strategic move has sparked a lot of buzz, and it’s clear Ather Energy is positioning itself as a major player in India’s booming EV market.
The company’s focus on premium electric scooters, like the Ather 450X and the newly launched Ather Rizta, is paying off. Ather Energy’s ability to grow its revenue while trimming losses shows it’s got a solid game plan as it prepares to go public. With the IPO just around the corner, all eyes are on Ather Energy to see how it charges forward.
Ather Energy Slashes IPO Size: What’s the Strategy?
So, why has Ather Energy decided to scale back its IPO? The company is now aiming to raise INR 2,626 Cr through a fresh issue of shares, a notable reduction from its earlier target of over INR 3,100 Cr. This decision comes amid global market volatility, with concerns like U.S. tariff policies shaking up stock markets worldwide. By trimming its IPO size, Ather Energy is playing it smart, opting for a leaner and more realistic fundraising goal.
The IPO also includes an offer-for-sale (OFS) of 1.1 Cr shares, down from an initial plan of 2.2 Cr shares. Big investors like GIC, Tiger Global, and Ather Energy’s co-founders, Tarun Mehta and Swapnil Jain, are offloading parts of their stakes. This scaled-back approach suggests Ather Energy is aiming for a pre-money valuation of around INR 9,900–10,000 Cr, a step down from the earlier INR 14,000 Cr target. Post-money, Ather Energy could still hit a valuation of over INR 12,000 Cr, making it a hot prospect in the EV sector.
By cutting the IPO size, Ather Energy is showing confidence in its growth story while keeping things grounded for investors. It’s a savvy move that balances ambition with caution, ensuring Ather Energy stands out in a competitive market.
Revenue Surge and Loss Reduction: Ather’s Financial Glow-Up
Ather Energy’s financials are nothing short of impressive. The company’s revenue from operations skyrocketed by 28.32% to INR 1,578.9 Cr in the first nine months of FY25, up from INR 1,230.4 Cr in the same period last year. This growth is fueled by strong sales of Ather Energy’s flagship models, including the Ather 450X, 450S, and the family-friendly Ather Rizta, which has been a hit since its launch. Despite challenges like reduced government subsidies under the FAME-II scheme, Ather Energy’s premium pricing and expanding charging network are driving its success.
The real kicker? Ather Energy slashed its net loss by over 25%, bringing it down to INR 577.9 Cr from INR 776.4 Cr. This improvement highlights Ather Energy’s focus on cost management and operational efficiency. The company sold 109,577 units in FY24, and with the Ather Rizta gaining traction, FY25 sales are expected to climb even higher. Ather Energy’s ability to boost revenue while cutting losses is a strong signal to investors that it’s on the right track as it gears up for its IPO.
Rising Expenses, But Ather Energy Stays Smart
It’s not all smooth riding, though. Ather Energy’s total expenses rose by 11.7% to INR 2,195.3 Cr in the first nine months of FY25, compared to INR 1,855.5 Cr in the same period of FY24. This uptick is driven by increased spending on raw materials, employee benefits, and research and development (R&D). In FY24, Ather Energy invested INR 236.5 Cr in R&D, and it’s likely pumping even more into innovating new models and expanding its network of over 1,700 fast-charging stations.
Here’s the good news: Ather Energy’s expense growth is much slower than its revenue growth, which shows the company is getting smarter about its spending. By keeping costs in check, Ather Energy is demonstrating to investors that it’s serious about profitability, even as it navigates a competitive EV market. The fact that Ather Energy has cut the size of its IPO also suggests it’s prioritizing efficiency over aggressive expansion, a move that could pay off in the long run.
What Lies Ahead for Ather Energy?
Ather Energy is at a turning point. With its IPO set to launch on April 25, 2025, and public bidding from April 28 to April 30, the company is ready to make a splash. Ather Energy has cut the size of its IPO, but its ambitions are still sky-high. The proceeds from the IPO will fund a new manufacturing plant in Maharashtra, set to boost Ather Energy’s production capacity to 1.42 million electric two-wheelers annually by 2027. The company also plans to scale its charging network to 5,000 stations by the end of 2025, making it one of the largest EV charging infrastructures in India.
On the product front, Ather Energy’s lineup is a crowd-pleaser. The Ather 450X and 450S cater to performance enthusiasts, while the Ather Rizta is winning over families with its practical design. Ather Energy is also exploring the electric motorcycle segment, though that’s a few years away. With a market share of around 11% in India’s electric two-wheeler market, Ather Energy is the fourth-largest player, trailing Ola Electric, TVS Motor, and Bajaj Auto.
Challenges like subsidy cuts, intense competition, and reliance on its Hosur manufacturing facilities remain, but Ather Energy’s focus on innovation and cost control gives it an edge. The company has guided that it expects to achieve EBITDA positivity by FY27, a goal that seems within reach given its FY25 performance. Ather Energy’s strategic moves, including cutting the size of its IPO, position it as a strong contender in India’s EV revolution.
Final Thoughts: Ather’s Bright EV Future
Ather Energy is charging toward an exciting future, and its FY25 performance proves it’s got the juice to compete in India’s fast-growing EV market. By boosting revenue, slashing losses, and smartly scaling back its IPO, Ather Energy is showing it’s ready to play the long game. The upcoming IPO is a chance for investors to get in on the action, and with Ather Energy’s focus on innovation and expansion, it’s definitely one to watch.
What do you think about Ather Energy’s IPO plans and its FY25 results? Ready for Ather Energy IPO? Are you excited about its growth, or do you think the competition will be tough? Drop your thoughts in the comments, and let’s keep the conversation buzzing! Stay tuned for more updates as Ather Energy’s IPO journey unfolds.
