Ather Energy, India’s homegrown electric two-wheeler (E2W) pioneer, has announced strong financial and operational numbers for the quarter and year ended 31 March 2025. Ather Energy Q4 FY25 results showcases top-line growth, margin expansion and EBITDA improvement, FY25 has been a big step towards sustainable profitability.
Ather Energy FY25 Performance
Ather Energy FY25 results reported a total income of INR 2,305.2 crore, up 29% from INR 1,789.1 crore in FY24. The company sold 155,394 vehicles in the year, a 42% year-on-year (YoY) growth from 109,577 units in FY24. Adjusted Gross Margin (AGM) almost doubled from 9% to 19%, a big improvement in unit economics and cost control.
EBITDA losses narrowed down from INR (649.4) crore in FY24 to INR (530.7) crore in FY25. EBITDA margin improved by around 1,300 bps from -36% to -23% due to scale, reduced Cost of Goods Sold (COGS) and increasing adoption of value added software offerings.
Ather Energy FY25 loss reduced by 23% to INR 812.3 crore from INR 1,059.7 crore.
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Ather Energy Q4 FY25 Performance
Ather Energy Q4 FY25 results reported a total income of INR 687.8 crore, a 28% YoY growth from INR 535.4 crore in Q4 FY24. Vehicle volumes for the quarter stood at 47,411 units, up from 35,244 units in Q4 of the previous fiscal.
Q4 Adjusted Gross Margin improved to 18% from 9% in Q4 FY24, with 1,900 bps YoY improvement in EBITDA margin. EBITDA loss reduced to INR (172) crore and net loss to INR (234) crore for the quarter, a 17% reduction in quarterly losses.
Product Performance: Rizta Drives Market Expansion
Much of this growth was propelled by the newly launched Ather Rizta, which quickly gained popularity and now accounts for 57% of Ather’s total volumes. Its appeal to mass-market consumers helped Ather significantly expand its reach beyond the southern states.
In FY25, Ather’s market share in the E2W segment rose to 11.4%, with the company holding a leadership position in southern India at 19.7%. Q4 FY25 alone saw a market share of 13.3% nationally and 22.4% in the southern region.
Distribution and Charging Network Expansion
Ather Energy aggressively expanded its footprint, ending FY25 with 351 experience centers across India — a net addition of 143 centers during the year. The company’s charging infrastructure also grew, with 1,128 new points added, bringing the total to 3,611. The Ather Grid and Neighborhood Charging network continue to be key enablers of customer convenience and adoption.
Additionally, the company entered international markets such as Sri Lanka during FY25, signaling its ambition to become a global E2W player.
Digital Ecosystem & Customer Stickiness
Software revenue also emerged as a strong lever. The Atherstack software platform saw an adoption rate of 88% among new buyers, contributing to recurring revenue and higher margins. The Android app garnered a solid 4.4-star rating, indicating high user satisfaction.
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Management Commentary: Looking Ahead
Tarun Mehta, CEO and Executive Director of Ather Energy, said,
“Ather Energy FY25 has been a year of robust growth, with strong increases in both volume and profitability, year-on-year. On the back of our new product launches, we saw strong volume growth of 42%, and our continued investments in engineering and R&D delivered a strong improvement in margins. Adjusted gross margins doubled, growing by approximately 1,000 bps, and that helped reduce EBIDTA losses by approximately 1,300 bps over the preceding year.”
He further highlighted the significance of software sales and aggressive retail expansion, especially in non-southern regions.
Conclusion
Ather Energy Q4 FY25 performance is a strong indicator that the company is entering a new phase in its growth story. With significant improvements in gross margins, declining losses, and accelerating sales volumes, Ather is positioning itself not just as a dominant player in the Indian E2W sector but also as a company with a credible path to profitability.
As India’s EV ecosystem continues to mature, Ather’s focus on vertical integration, R&D, and software differentiation appears to be paying off. FY26 could be the year Ather turns the corner financially — and potentially emerges as a global benchmark for electric two-wheeler companies.