Are Ather Energy latest results good or bad?

Ather Energy's latest financial results for the quarter ending September 2025 reveal a company experiencing significant revenue growth alongside ongoing challenges in profitability. The net sales reached ₹898.90 crores, reflecting a robust quarter-on-quarter growth of 39.45% and a year-on-year increase of 54.05%. This marks the highest quarterly revenue in the company's history, driven by enhanced production capacity and growing consumer acceptance of electric two-wheelers.
Despite this impressive revenue growth, Ather Energy continues to face substantial operating losses. The operating profit before depreciation, interest, tax, and other income (PBDIT) was negative ₹132.50 crores, resulting in an operating margin of -14.74%. While this represents the best margin performance in seven quarters, it highlights the company's ongoing struggle to achieve positive cash flows from its core operations. The net loss for the quarter was ₹154.10 crores, which is a reduction from previous losses, indicating a narrowing of losses but still raising concerns about the company's financial sustainability.

The company's financial performance must be viewed in the context of its strategic focus on market share expansion over immediate profitability. With cumulative losses exceeding ₹3,000 crores since inception and cash reserves dwindling, Ather Energy is at a critical juncture. The evaluation of the company has seen an adjustment, reflecting the complexities of its financial situation and operational challenges.

In summary, Ather Energy's latest results illustrate a company with strong revenue momentum but persistent losses, underscoring the ongoing challenges it faces in achieving profitability in a competitive and capital-intensive market.