Ather Energy has made one giant leap towards their path to profitability by narrowing losses down to Rs 100 crore in Q4FY26. This compared to a loss of Rs 234 crore during the same period last year. However, the real story lies in how close the company has become to the elusive breakeven point.
​Speaking with NDTV Profit, Co-founder and CEO Tarun Mehta claims Ather Energy was essentially at the doorstep of profitability before an unprecedented rise in global commodity prices, which was fueled by the ongoing tension in the Middle East.
​"If the commodities hadn't run off like what they have in the last few months, honestly, I would have felt comfortable [reaching profitability] over the next few months and quarters," Mehta stated.
While he noted the geopolitical situation has "changed the picture" and added more time to the trajectory, he remains bullish on the underlying business model.
"The business is landing up at a much better place because all these price hikes and all the innovation in the business model and the cost structures is yielding long-term benefits while navigating the short-term challenges."
​Despite elevated commodities prices being a key headwind, Ather has managed to improve its margin by 100 basis points in Q4. He attributed this to a mix of value engineering and a disciplined pricing strategy, which included a Rs 1,500 hike in January and a Rs 2,500 hike in April.
​Crucially, Ather has moved to insulate itself from supply chain shocks by diversifying its battery technology.
"Ather was the first large e-two-wheeler brand to diversify to LFP (Lithium Iron Phosphate)... This has given us a massive cushion because the sources of LFP are many," Mehta explained,
The Ather Energy top boss added that the company is actively securing cells from Malaysia and South Korea to bypass the pressure of pure-play China sourcing.
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