India’s electric two-wheeler manufacturer Ather Energy reported a reduced quarterly loss in Q1 FY25, supported by nearly doubling its sales volume. Despite growing revenues, the company faces headwinds from China’s rare earth magnet export ban, which may temporarily affect supplies in Q2. Ather is exploring alternatives while maintaining strong momentum in non-vehicle revenues and improving margins.
India-based electric two-wheeler manufacturer Ather Energy posted a narrowed quarterly loss for Q1 FY25, supported by strong demand momentum and expanded non-vehicle revenue streams. The company reported a net loss of ₹1.78 billion (USD 20.3 million) for the quarter ended June 30, an improvement from ₹1.83 billion a year ago.
Total revenue surged 78.8% year-on-year to ₹6.45 billion, driven by sales of 46,078 units—nearly doubling from the same period last year. The company’s gross margin also improved, rising to 23% from 19% a year ago. This was largely supported by increased revenue from services and accessories, such as warranty extensions and its proprietary “Halo” helmet range.
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However, Ather flagged potential short-term risks arising from China’s export ban on rare earth magnets, which are critical to EV motor components. CEO Tarun Mehta stated that the company anticipates a “week-long business impact” during the second quarter due to a temporary supply disruption. Ather aims to mitigate the impact by using existing inventory and sourcing light rare earth magnet alternatives that remain outside the scope of the ban.
China currently accounts for nearly 90% of the global rare earth magnet supply, making the policy shift significant for global manufacturers reliant on these critical components. Ather’s proactive stance in diversifying material inputs indicates strategic risk management amid evolving geopolitical trade conditions.
Despite intensifying competition from larger players in India’s electric vehicle segment, Ather continues to expand its presence. The company entered the market in 2018 and has since focused on high-performance electric scooters, including its flagship Rizta model.
Backed by strong investor confidence, Ather’s shares surged as much as 19.4% during intraday trading on Monday, closing 14% higher at ₹414.65 on the back of its earnings release.
As India accelerates its EV adoption targets, Ather’s performance reflects the broader market’s transition challenges and growth potential. Its strategy to boost non-vehicle revenue and secure supply chain resilience may help stabilize margins in the quarters ahead.
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