Electric scooter maker Ather Energy is shifting gears with a bold ₹2,626 crore IPO plan, betting big on scaling up production, trimming its debt, and sparking fresh innovation. Even though losses still loom, the company’s market traction is giving it enough fuel to ride into the future with confidence.
Investors, though, will have to buckle up tight — Ather’s path forward looks promising but far from a smooth cruise.
Big Dreams on the Back of Bigger Risks
Ather Energy, born in 2013 and now a familiar name on India’s EV streets, is not exactly profitable yet. But that’s not stopping it from thinking big. The IPO will combine a ₹2,626 crore fresh issue with a ₹355 crore offer for sale, setting the stage for a substantial war chest.
One major change: Hero MotoCorp’s stake is set to dip from 38% to about 31% after the listing. Founders Tarun Mehta and Swapnil Jain will also see their holdings shrink slightly. It’s a classic move to free up capital, but not without diluting control a bit.
Ather wants the funds mainly for:
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Setting up a new factory at Chhatrapati Sambhajinagar, Maharashtra
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Boosting R&D for next-gen platforms
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Paying down part of its outstanding debt
This IPO, though, doesn’t come without risks. Despite expanding its footprint to 202 cities with 233 service centers, Ather is still battling heavy competition and ongoing net losses.
Rizta’s Launch Breathes New Life into Sales
Momentum seemed sluggish until recently. Then came ‘Rizta’, Ather’s new family-oriented electric scooter, launched earlier in 2025 — and it’s turning heads.
In just four months from January to April, registered vehicle data showed an 18% spike in Ather’s volumes, touching 47,284 units. Ola Electric, by contrast, saw its numbers drop by a stunning 54% during the same window. Talk about a turnaround!
One small paragraph for flow: It’s the kind of swing that can change an entire company’s fortunes if it holds up.
Even with this bump, the competition is nothing short of brutal. Ola still commands a lion’s share of the electric two-wheeler (E2W) market at 34.1%, compared to Ather’s 10.7% as of December 2024. That gap is wide, and Ather knows it.
Financial Snapshot: Progress, But Still Bleeding Red
Financially, Ather Energy has shown signs of slow healing — but it’s still in the ICU, if we’re being honest.
For the first nine months of FY25:
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Revenue climbed 28% to ₹1,578.9 crore.
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Net loss shrank a bit to ₹577.9 crore.
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Operating (EBITDA) loss eased to ₹370 crore, down from ₹422.9 crore year-over-year.
Still, it’s a lot of red ink. And it means typical valuation metrics like price-to-earnings (P/E) multiples don’t apply. Instead, the IPO pitch leans on the price-to-sales (P/S) ratio, which will stand at a steep 5.7 after the listing, compared to Ola’s 4.2.
Here’s a quick financial snapshot:
| Metric | Ather Energy (9M FY25) | Ola Electric (9M FY25) |
|---|---|---|
| Revenue | ₹1,578.9 crore | Higher (exact figure not mentioned) |
| Net Loss | ₹577.9 crore | ₹1,406 crore |
| Market Share | 10.7% | 34.1% |
| Price-to-Sales Ratio (P/S) | 5.7x | 4.2x |
Seeing those numbers side-by-side, you realize — Ather’s journey is very much a work-in-progress story.
New Factory Dreams and Battle for Scale
The expansion plan is not just ambitious, it’s necessary.
Right now, Ather’s main factory in Hosur, Tamil Nadu can roll out 420,000 electric two-wheelers and about 379,800 battery packs annually. But the new Maharashtra plant will almost double that capacity to one million units. It’s a massive jump.
That’s not just about volume. It’s also about muscle-flexing in a market where margins are wafer-thin and brand loyalty is fragile.
The new facility will support fresh platforms for both scooters and, interestingly, motorcycles — hinting that Ather’s vision isn’t locked into just the scooter segment anymore.
One-sentence paragraph: It’s a smart pivot considering India’s growing appetite for premium electric motorcycles.
But growing capacity doesn’t guarantee growing sales. Consumer sentiment, battery tech improvements, and price wars will all be lurking hurdles. Plus, competitors are not going to sit back and let Ather eat their lunch.
Investor Sentiment: High Risk, Maybe High Reward?
If you’re an investor eyeing this IPO, you’ll need nerves of steel.
Yes, the sales momentum is encouraging. Yes, the Rizta launch has lit a small fire under Ather’s growth numbers. And yes, the second factory can eventually transform its production capability.
But — and it’s a big but — the company still bleeds money. Competition from heavyweights like Ola Electric is fierce. And scaling up so aggressively while trying to turn profitable is a tightrope act.
This IPO might appeal most to investors with a taste for adventure — the kind willing to bet on potential more than present-day numbers.
No one’s handing out guarantees here. But sometimes, in investing, you’ve got to take the bumpy road if you want the view.
