(Reuters) -Indian e-scooter maker Ather Energy reported a narrower loss for the second quarter on Monday, as more stores helped drive sales of models such as the Rizta.
The company posted a loss of 1.54 billion rupees ($17.52 million) for the quarter ended September 30, compared to a loss of 1.97 billion rupees a year ago.
The Bengaluru-based company, which was founded in 2013, has been selling electric scooters since 2018 and has steadily gained market share.
Analysts expect the trend to accelerate with the launch of scooters built on a new platform, targeting consumers beyond its traditional performance-focused base.
Backed by two-wheeler maker Hero MotoCorp, which owns a stake of around 30%, Ather operates over 524 experience centres in the country, a significant increase from the 265 it had in December 2024, prior to its listing on the public market in May this year.
It plans to double its retail footprint to 700 stores by March end.
Ather’s revenue surged 54% on-year to 8.99 billion rupees during the July-to-September quarter, but rising material costs pushed overall expenses about 38% higher.
Its quarterly sales volumes rose 67% to 65,595 units.
Adjusted gross margin expanded to 22%, reflecting a 300 basis points rise on-year, driven by growth in non-core revenue streams including warranty programs and accessories.
These contributed to 12% of total revenue.
Rival Ola Electric reported a narrower quarterly loss last week, helped by a sharp drop in its expenses.
Ather still continues to lag behind rivals like Ola Electric and legacy giants such as Bajaj Auto which benefit from deeper pockets and wider distribution networks.
($1 = 87.8950 Indian rupees)
(Reporting by Meenakshi Maidas, Manvi Pant and Mridula Kumar in Bengaluru; Editing by Mrigank Dhaniwala)
