Major Enther Energy with two electric wheels hopes to continue improving its booths of Ebita, driven by the growing volumes of its new scooter model, Ritza, according to the co -founder and CEO Tarun Mehta.
“With Ritza contributing to a large part of the company’s sales, the company now has the ability to add more retail stores,” said Mehta. The company is betting on expanding its retail footprint along with the growth of its product portfolio to strengthen its path to profitability.
The strong impulse of Ather’s volume has already begun to reflect in his financial performance. The adjusted gross margin of the company improved abruptly 9 percent in the six months finished on December 31, 2023, to 19 percent in the same period in 2024. Simultaneously, Ather reduced his booth loss of Ebitda to 23 %, compared to 34 percent in the previous year.
Strategic cost initiatives
The EV manufacturer is also implementing strategic cost initiatives to support greater margin expansion. It is in traditional NMC battery transition to LFP batteries (cheaper iron phosphate), and changing to a platform the one with the lowest cost for its scooters movements that, according to Mehta, helps reinforce profitability over the medium term.
With a favorable unitary economy, an increasing sales base and a growth pipe, ATher is aggressively positioned to compete in the electric two -growing electricity market in India.
With the IPO that came to the market on Monday, Ather will be the second two -wheeled company to become public after Ola Electric. The company plans to raise approximately ₹ 2,626 million rupees through a new issue of shares. The problem also includes sacrifice for the sale of existing promoters and shareholders. In addition to the allocation to the new manufacturing center and R&D initiatives, ₹ 300 million rupees will be used for marketing initiatives and ₹ 40 million rupees for debt reimbursement.
Until Friday, the company raised ₹ 1,340 million rupees of anchor investors Corporation and innovation and union opportunities.
(With supplies from Nethra Sailesh internal from the business line)
Posted on April 26, 2025