Ather Vs Ola Electric: How Financials Of The Two-Wheeler EV Makers Stack Up

Ather Energy Ltd. has doubled its adjusted gross margin and reduced loss since the Bengaluru-based EV maker first filed its IPO papers, so much so that its financials are now comparable to those of crosstown rival and India’s former No. 1 electric two-wheeler maker Ola Electric Mobility Ltd.

In the nine months ended Dec. 31, 2024, the Rizta maker reduced its loss to Rs 577.9 crore, as against Rs 776.4 crore in the year-ago period, according to its red-herring prospectus. Over the same time, adjusted gross margin improved to 19% from 9%.

In comparison, Ola Electric’s loss widened to Rs 1,406 crore in 9MFY25 as against Rs 1,168 crore in 9MFY24, according to an exchange filing on Feb. 7, 2025. Its adjusted gross margin stood at 20.4% versus 18.6% in the year-ago period.

But Ola Electric scores on the revenue front, thanks to much higher sales.

In the nine months through Dec. 31, 2024, revenue of the Roadster maker rose 14.39% year-on-year to Rs 3,903 crore. Ather Energy, however, grew much faster at 28.32% to register a topline of Rs 1,578.9 crore. Ola Electric continues to outpace Ather Energy on sales—three Ola scooters were sold for every one by Ather in 9M FY25.

Still, the road to profitability appears hazy for both.

Ather Energy has made significant strides in cost reduction—bill of materials has reduced by a third, as has warranty costs—but the company’s management is non-committal on giving a timeline to achieve profitability, even on an operational basis. 

“On the business side, we have kept a very disciplined and focused eye on profitable growth,” Tarun Mehta, co-founder and chief executive at Ather Energy, told NDTV Profit during an interaction in the run-up to the IPO. “I think markets don’t like growth that comes at the expense of profitability. It does not mean that you have to be profitable today, but you have to be on the journey to profitability…not just ‘show me the path’ but also ‘move on that path’, while growing the topline.”  

Towards that end, Ather Energy has an ace up its sleeve—the Ather Propack. The value add-on contributed 6% to the company’s topline at an Ebitda margin of 53-56%. That, along with lower BOM and warranty costs, propped up adjusted gross margin even as hardware subsidy waned.

Ola Electric, over the same time, has faltered on its promise of profitability, in the face of malaise in various aspects of its business. The company, led by founder billionaire Bhavish Aggarwal, is facing intense scrutiny over how it operates its stores and sells its scooters, not to mention its well-documented service problem.

The company has managed to save costs to the tune of Rs 90 crore per month, but that’s come on the back of layoffs that have become a weekly feature at its Koramangala headquarters. Still, the company has promised an Ebitda breakeven in the first quarter of fiscal 2026.

As on Dec. 31, Ola Electric had an Ebitda margin of -28.8% versus Ather Energy’s -23%. The latter begins life as a listed company on May 6. The race to profitability will be keenly watched thereon.