Are Ather Energy Ltd latest results good or bad?

Ather Energy Ltd's latest financial results for Q3 FY26 reflect a complex operational landscape. The company reported net sales of ₹953.60 crores, which represents a year-on-year growth of 50.20% and a sequential increase of 6.09%. This robust revenue growth indicates strong demand for Ather's electric scooters, particularly the Ather 450 series, and highlights the company's expanding distribution network across Indian cities. Despite this positive revenue momentum, Ather Energy continues to face significant challenges. The company recorded a net loss of ₹84.60 crores, although this figure shows a notable improvement of 45.10% from the previous quarter's loss of ₹154.10 crores. The improvement in the net loss is accompanied by a reduction in the PAT margin, which improved to -8.87% from -17.14% in the prior quarter, suggesting better absorption of fixed costs as revenues scale. The operating margin, excluding other income, also demonstrated marked improvement, narrowing to -7.55% from -14.74% in Q2 FY26, marking the best performance since the company's inception. This operational enhancement indicates that Ather Energy is gradually moving closer to operational break-even, although profitability remains a distant goal. However, the company’s financial sustainability is under scrutiny due to cumulative losses exceeding ₹800 crores in FY25 and ongoing negative cash flows, which amounted to ₹720 crores in the same fiscal year. The financial metrics reveal a concerning return on equity of 0.0%, and the capital-intensive nature of the business necessitates continued capital infusions to support operations. In summary, Ather Energy Ltd's latest results illustrate a company making strides in revenue growth and operational efficiency, yet still grappling with substantial losses and cash burn. The company saw an adjustment in its evaluation, reflecting the ongoing challenges and potential for future growth within the competitive electric vehicle market.