Ather Energy Ltd

Price story Before the numbers, the tape. A stock price moves through four repeating seasons: a flat base (stage 1), an advance (2), a top (3), a decline (4). Where the price sits in that cycle frames everything below.

Ather Energy Ltd trades at ₹1,282, in a confirmed uptrend and 60 weeks into that stage. That is +58.6% against its own 200-day average. It sits at 100% of a 52-week range of ₹499 to ₹1,282. On relative strength it has been ahead of the NIFTY 500 on a trailing-13-week view for 30 straight weeks.

Today the stock is in a confirmed uptrend — week 60 of stage 2, confirmed. At ₹1,282 it trades +58.6% versus its 200-day average and sits at 100% of its 52-week range (₹499–₹1,282).

Against the market, two honest reads. Cumulative: over the last 1.2 years the stock moved +327% while the NIFTY 500 moved +4% — ahead of the index over the full window. Recent form: on a trailing-13-week view the stock has been ahead for 30 straight weeks — the ribbon below is that same metric, week by week.

What would end the trend, mechanically: two Friday closes in a row below the 200-day line. That is the exit rule — no debates.

→ The trend is one thing; the bill is another. Are you paying up for it? Next: how the P/E reads against its own history.

Valuation P/E is the price of ₹1 of annual profit: how many rupees the market pays for each rupee the company earns in a year.

P/E does not price Ather Energy Ltd — earnings are negative, so there is no multiple to rank against its own history. The revenue and margin lines below are where a turn, when it comes, would show first. On sales the market values Ather Energy Ltd at 13.0× its FY26 revenue of ₹3,672 Cr.

With earnings negative, P/E does not price — there is no multiple to rank against its own history. The revenue and margin lines below are where the turn, when it comes, will show first.

Put together: the multiple is unremarkable against its own past, so the story rests on the earnings line underneath it, not the multiple.

→ Cheap or dear rides on the earnings. Are they actually growing? Next: the fundamental stage — where the business sits in its arc, and how growth has compounded.

Stage: No read Every business sits somewhere on a fundamental arc, and this page names the spot before anything else. The last twelve quarters of revenue, profit and EPS growth — plus the return the business earns on its capital — are read as curves: Deteriorating (the curves are falling), Turning around (a trough has just formed and the last few quarters lift off it), Improving (the climb off the trough is sustained), Consistent (steadily positive with healthy returns), Topping out (still high but decelerating from the peak). When the curves genuinely disagree the read is Mixed; too little history is No read. CAGR (compound annual growth rate) is the smooth yearly pace that turns the starting value into the latest one — the fairest way to compare growth across different time spans. Read the columns together: if the 1-year number towers over the 10-year, recent growth is running hotter than the long-run trend. A dash means that window is not held, or the base year was a loss (where a growth rate is not meaningful).

Ather Energy Ltd reads as no read on its fundamental arc. Under eight usable quarters on the growth trio — not enough history for an honest trajectory read. The read is built from 6 quarters across 1 curve, on partial evidence.

Why it matters: with too little history, an honest page says so instead of guessing a trajectory.

One or more growth curves carry a base-effect spike — a large year-on-year move off a near-zero or loss-making comparable quarter. Those spikes are capped before the classifier reads the trajectory, and shown pinned on the chart, so a single distorted quarter does not drive the stage call.

Fewer than eight usable quarters on the growth curves — this page will not guess a trajectory from a stub of history.

→ The stage names the trajectory. Next: the revenue line that produces it, quarter by quarter.

4-Factor Sector Score

59.4/100 — rank 4 of 8 in Auto - 2 & 3 Wheelers · 62% evidence confidence

Ather Energy Ltd scores 59.4 out of 100 against the 8 companies it is compared with in Auto - 2 & 3 Wheelers, ranking 4. Balanced evidence: keep at normal research priority and require another comparable period before raising conviction.

The four contributions add to the total exactly: 26.4 + 6 + 10 + 17 = 59.4. This is the SAME number shown on the sector comparison — it is computed once, for the whole peer set, and read here.

What would change it: The read weakens if profit growth turns negative or margin improvement reverses while sector-relative strength deteriorates.

Revenue Revenue is the top line: everything the company billed its customers in the period.

Ather Energy Ltd reported ₹1,175 Cr of revenue in the Mar 26 quarter, +73.8% year on year. That is the 5th straight quarter of year-on-year growth. Over 6 years it has compounded at 117.2% a year. The last full year, FY26, came in at ₹3,672 Cr. The last four reported quarters add to ₹3,673 Cr.

Ather Energy Ltd reported ₹1,175 Cr of revenue in the Mar 26 quarter, +73.8% year on year. That is the 5th straight quarter of year-on-year growth. Over 6 years it has compounded at 117.2% a year. The last full year, FY26, came in at ₹3,672 Cr. The last four reported quarters add to ₹3,673 Cr.

FY26 revenue came in at ₹3,672 Cr (+62.8% on the year), capping 6 years at 117.2% compound. The latest quarter (Mar 26) printed ₹1,175 Cr, +73.8% year on year — the 5th consecutive quarter of year-over-year growth.

Pace check: the last four quarters averaged +64.3% growth against the decade's 117.2% — the current year is running slower than its own long-run rate.

→ Revenue grew — did margins hold as it scaled? Next: −6.0% this quarter (+19.0 pp YoY).

Operating margin Operating margin is what is left of every ₹100 of sales after running the business, before interest and tax. It is the cleanest read on pricing power and cost control.

Ather Energy Ltd's operating margin is −6.0% in the Mar 26 quarter, +19.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged −523.0% to −11.0%. The current quarter is running above every full year in that window.

Ather Energy Ltd's operating margin is −6.0% in the Mar 26 quarter, +19.0 percentage points against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged −523.0% to −11.0%. The current quarter is running above every full year in that window.

The latest quarter's operating margin is −6.0%, +19.0 pp against the same quarter a year ago. Across 7 fiscal years the operating margin has ranged −523.0%–−11.0%.

Why the margin moved: operating margin went +19.6 pp year on year while gross margin went +6.3 pp — the gain came mostly below the gross line: operating leverage, with costs spread over a bigger revenue base.

→ Margins held — did that reach the bottom line? Next: profit null in the latest quarter.

Net profit Net profit is what survives every cost, interest and tax — the number EPS, dividends and book value all grow from.

Ather Energy Ltd posted a net loss of ₹100 Cr in the Mar 26 quarter. The full FY26 year was a loss of ₹517 Cr. That loss is 8.5% of the quarter's revenue. The same quarter a year earlier lost ₹234 Cr. 9 of the last 9 reported quarters were loss-making.

Ather Energy Ltd posted a net loss of ₹100 Cr in the Mar 26 quarter. The full FY26 year was a loss of ₹517 Cr. That loss is 8.5% of the quarter's revenue. The same quarter a year earlier lost ₹234 Cr. 9 of the last 9 reported quarters were loss-making.

Mar 26 profit was ₹−100 Cr, null year on year. On the full year, FY26 printed ₹−517 Cr (null).

→ Profit rose — but did the cash follow?

Cash flow — the router The P&L says what was earned; the cash-flow statement says what actually arrived. Operating cash flow (CFO) against profit is the cleanest lie detector in the accounts.

Ather Energy Ltd's cash-flow history is too thin to judge how much reported profit converts into cash. In FY26 that was ₹32.0 Cr of operating cash against ₹−517 Cr of profit. After ₹402 Cr of capital spending, ₹−370 Cr was left as free cash. Cash resolution here is annual, because quarterly cash statements are not published.

FY26: operating cash of ₹32.0 Cr against reported profit of ₹−517 Cr, leaving free cash of ₹−370 Cr after ₹402 Cr of capital spending.

Cash-flow readings here are annual — that is the resolution our series carries, so this section moves once a year.

Router verdict: the bigger cash user is investment — capital spending ran 1.8× depreciation over three years, so the next section's job is to check what that build-out is buying.

→ So follow the cash to where it goes. Next: ₹877 Cr of building over 3 years.

Where the cash goes Working capital is the cash tied up between paying suppliers and getting paid: debtor days (customers owe), inventory days (stock waits), and the cash conversion cycle (the whole loop, in days of sales).

Ather Energy Ltd's cash conversion cycle runs −68 days in FY26, down from −43 days in FY21. Capital spending ran ₹877 Cr over the last 3 years. At FY26 sales of ₹3,672 Cr each day of that cycle holds about ₹10.1 Cr, so roughly ₹−684 Cr sits inside the business at any moment.

FY26: debtors at 1 days, inventory at 35 days — roughly 1.2 months of stock waiting to sell; that is where the cash sits while it waits — for a full cycle of −68 days, tighter than FY21's −43.

The full loop: cash goes out to suppliers and production on day 0; stock waits 35 days to sell; customers pay about 1 days after that; and suppliers themselves are paid at 105 days — netting out to the −68-day cycle.

In money terms: at FY26 sales of ₹3,672 Cr, each day of the cycle holds about ₹10.1 Cr — so the −68-day loop keeps roughly ₹−684 Cr sitting inside the business at any moment.

On the investment side: capital spending of ₹877 Cr over the last 3 fiscal years against ₹491 Cr of depreciation — the company is building well ahead of wear-and-tear. Capital work-in-progress stands at ₹340 Cr (FY26) — capacity paid for but not yet earning.

The synthesis: the cash is going into capacity, not disappearing into the cycle — the question becomes whether the new capacity earns.

→ Does all this activity actually earn its cost of capital? Next: ROCE is −20% and the ROIC − WACC spread is −28.9 pp.

Return on capital Return on capital employed (ROCE) is the profit the whole business earns on all the money in it — equity and debt together. It is the single best test of whether growth creates value or just size.

Ather Energy Ltd earns a ROCE of −20% in FY26. That is up from a trough of −95% in FY23. Return on invested capital clears the cost of that capital by −28.9 percentage points, so growth here is not yet paying for the capital it uses. The wiring behind it is −14.1% net margin on 0.78× asset turns.

FY26 ROCE is −20%, recovered from a FY23 trough of −95% — the full ladder below shows the fall and the climb, undoctored.

🚨 Why the return is what it is — the wiring (FY26): −14.1% net margin × 0.78× asset turns × 1.84× balance-sheet leverage ≈ −20.2% on equity. Margin does its share; leverage is a meaningful part of the equation.

The capstone test — ROIC − WACC: −16.9% − 12.0% = a −28.9 pp spread. The 12.0% is a standing assumption for the cost of capital in India, not a per-stock estimate — read the sign and the size of the spread, not the decimals. Negative — growth at these returns destroys value until the returns recover.

→ Returns like these — is the balance sheet borrowing to make them? Next: debt-to-equity is 0.26.

Debt Debt-to-equity says how much of the business is funded by borrowings. Low is the safe corner; the trend matters as much as the level.

Ather Energy Ltd carries total debt of ₹664 Cr against shareholder equity of ₹2,573 Cr as of Mar 26, a debt-to-equity of 0.26 — effectively unlevered. On the annual view that ratio went from 0.88 in FY24 to 0.26 in FY26. The returns elsewhere on this page are therefore earned rather than borrowed.

Mar 26: total debt of ₹664 Cr against shareholder equity of ₹2,573 Cr — a debt-to-equity of 0.26. On the annual view, debt-to-equity went from 0.88 (FY24) to 0.26 (FY26). The returns on this page are earned, not borrowed.

→ Who owns this, and are they adding or leaving? Next: Foreign institutions cut 7.8 points over 4 quarters.

Ownership Who owns the stock, quarter by quarter: promoters (the controlling owners), foreign and domestic institutions, and the public. Steady accumulation by people close to the numbers is a signal; a quiet register is also an answer.

Foreign institutions cut 7.8 points of Ather Energy Ltd over 4 quarters, the biggest move on the register. That takes foreign institutions to 16.2% of the company. Domestic institutions moved +5.3 points over the same window, to 29.3%. The register is read on the four disclosed classes only; nothing is inferred between filings.

The register over the last two years — Foreign institutions: −7.8 points over 4 quarters to 16.2%; Domestic institutions: +5.3 points over 4 quarters to 29.3%; Promoters: −1.4 points over 4 quarters to 40.7%.

Why the register moved: rotation — foreign institutions −7.8 points against domestic institutions +5.3 points over 4 quarters, with promoters −1.4 points — one class of institutions handing the register to the other, not a verdict change by the people closest to the numbers.

→ One last check: does the safety math agree? Next: the balance-sheet safety line.

Safety line The Z-score estimates how far a company sits from balance-sheet distress — above roughly 3 is safe, below roughly 1.8 is the danger zone. It was built for manufacturers, so it is not applied to banks and lenders.

Ather Energy Ltd: the Z-score reads 5.40. A Z-score above roughly 3 reads as safe and below roughly 1.8 as the distress zone, so this sits well clear of distress. It is a distance-to-distress estimate from the balance sheet, not a forecast of failure.

Why it matters: a Z-score of 5.40 sits well clear of the distress zone — the balance sheet is not the risk here.

The safety line in one sentence: the Z-score reads 5.40.

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