Ather RHP Highlights Financial Turnaround, Rizta Scooter Expands Market Reach

Mumbai: Electric two-wheeler manufacturer Ather Energy has showcased a significant financial turnaround in its Red Herring Prospectus (RHP) filed ahead of its Rs 2,981-crore IPO. The document reveals a steady decline in net losses through the first three quarters of FY25, with losses dropping from Rs 286 crore in Q1 to Rs 110 crore in Q3. The total loss for the nine-month period stood at Rs 578 crore, a 26 per cent year-on-year improvement.

This financial recovery was fueled by multiple internal cost-efficiency measures. These included lower battery cell costs, a richer product mix, and improved margins. The company doubled its adjusted gross margin to 19 per cent and reduced its EBITDA loss by one-third over the same period.

Rizta Scooter Expands Market Reach

Ather’s new family-oriented scooter, the Rizta, has proven pivotal in expanding its footprint beyond its traditional performance-focused 450 series. Launched in early 2024, the Rizta accounted for over a third of the 50,000 units sold in Q4 FY25, according to VAHAN data. This boosted Ather’s domestic market share to 15 per cent, a four-percentage-point jump from the previous quarter.

The company, previously concentrated in South India, is now making inroads into western and northern states. Maharashtra crossed the 10 per cent market share threshold, while Gujarat hit 25 per cent in December, averaging 23-25 per cent for the quarter—up from 5 per cent in July.

Expanding Network and Product Platforms

Ather’s distribution and service infrastructure has also seen rapid growth. The brand now operates 311 experience centres across 218 cities, a notable increase from 178 locations a year ago. Its fast-charging network, known as “Grid,” has surpassed 4,100 touchpoints.

At an IPO roadshow, co-founder Tarun Mehta highlighted that Rizta’s family-focused appeal has unlocked markets in Delhi and Uttar Pradesh, previously unreachable due to the limited appeal of the 450 series.

Looking ahead, the company is developing new product platforms—“EL” for multiple scooter models and “Zenith” for a range of bikes.

IPO to Fund Expansion, R&D, and Marketing

The IPO will comprise a fresh issue worth Rs 2,626 crore and an offer for sale (OFS) of 1.1 crore shares by existing shareholders. At the top price band, the company is valued at Rs 11,956 crore.

Proceeds will be allocated to build a new manufacturing facility in Maharashtra (Rs 927 crore), R&D (Rs 750 crore), marketing (Rs 300 crore), and to reduce debt, marking a bold growth path for Ather as it prepares for a public debut.

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