Ather Turns A Corner
Amid concerns of sliding EV two wheeler sales in India, Ather managed to sharply shrink its losses in Q1 FY27, and more importantly, turn EBITDA positive. Bolstered by its fresh ₹2,500 Cr rights issue and fundraise, Ather is now preparing to scale its expansion plans and inch closer to real profitability.
Here is a quick look at Ather’s Q1 FY27 numbers:
- Net loss narrowed 71% YoY to ₹51.1 Cr
- Operating revenue zoomed 89% YoY to ₹1,216.9 Cr
- Total expenses soared 54% YoY to ₹1,310.7 Cr
- EBITDA profit stood at ₹9 Cr versus an EBITDA loss of ₹106 Cr loss a year ago
Volume Surges: The EBITDA turnaround was driven by strong volumes. The EV maker delivered 83,173 electric scooters in Q1, an 81% YoY jump, as customer demand continued to outstrip production capacity. On top of this, rising high-margin non-vehicle revenue from software subscriptions, charging, accessories and after-sales services contributed 14% of operating revenue.
Margin Discipline: Despite commodity cost spikes, Ather expanded its adjusted gross margin by 82% YoY to ₹282 Cr in Q1. The EV maker managed to offset inflationary pressures through calibrated price hikes, supplier negotiations and an improved product mix. These measures unlocked strong operating leverage, helping Ather absorb fixed overheads.
Ather’s Next Stop: To meet demand, Ather is now accelerating its manufacturing expansion. Its new unit in Maharashtra is on track to start production in Q3 FY27 and will add 5 Lakh units of annual capacity. Once fully operational, total capacity will reach 14.2 Lakh per year. In addition, the company plans to roll out a new scooter later this month to widen market share and sharpen manufacturing efficiency.
As the EV maker prepares to pour the recently raised funds to scale its ambitions, here is how Ather fared on the financial front in Q1…
From The Editor’s Desk
🔔 Klassroom IPO Day 2
- The edtech startup’s BSE SME IPO was subscribed 98% on the second day of bidding, receiving bids for 17.22 Lakh shares as against 17.58 Lakh shares on offer.
- Retail investors led from the front, oversubscribing their quota by 1.32X. Qualified institutional buyers and non-institutional investors also picked up pace and subscribed their portions 68% and 67%, respectively.
- Klassroom’s public issue comprises a fresh issue of shares up to 19.89 Lakh shares and an OFS of up to 4.66 Lakh shares. At the upper end of its price band of ₹151-159, Klassroom is looking to raise ₹39 Cr via the IPO at a valuation of ₹146 Cr.
💳 UPI MDR On The Anvil?
- The Centre has proposed new amendments to Section 10A of the Payment and Settlement Systems Act, 2007. The draft rules replace the blanket prohibition on MDR and exempt only certain payment modes, notified by the government, from the charges.
- The proposed rules are expected to be tabled in the Parliament tomorrow. Industry players have welcomed the development, with many hinting that the proposed rules could move the pricing decision of the MDR directly under RBI control.
- This follows Inc42 reporting that the Centre was weighing a targeted reintroduction of MDR. Under the proposal, businesses with an annual turnover of ₹1 Cr to ₹1.5 Cr or more would attract an MDR of 0.05% to 0.07% on UPI transactions above ₹2,000.
💰 Matel Motion Bags ₹130 Cr
- The EV components maker has raised around $13.6 Mn in its Series B round led by UC Impower to scale its manufacturing capacity, advance R&D, accelerate product development, ramp up hiring and broader international footprint.
- Founded in 2017, Matel designs and manufactures synchronous machines and motor controllers for e-mobility, industrial applications and agricultural pumps. It last raised $4 Mn in its Series A round in 2024.
- The homegrown EV component manufacturing ecosystem is witnessing a major boom, driven by government incentives, supply chain localisation efforts and growing consumer demand for green vehicles.
📈 Shiprocket Gears Up For IPO
- The ecommerce enablement unicorn plans to launch its IPO within the next two weeks at a valuation of ₹7,000 Cr. Having already received SEBI nod, Shiprocket now plans to file its updated IPO papers with SEBI in the coming days.
- Meanwhile, LEAP India has also filed its RHP with the markets regulator for a ₹2,480 Cr IPO. The logistics-focused SaaS platform has set a price band of ₹151-₹159 for its issue, which will comprise a fresh issue of shares worth ₹480 Cr and OFS of up to ₹2,000 Cr.
- Joining the IPO bandwagon, battery swapping startup Battery Smart is all set to file its DRHP with SEBI by October. The platform has raised more than $200 Mn to date, and operates a network of more than 1,500 swapping stations across 75+ cities.
🤝 Imarticus Acquires BELLS
- In its first international acquisition, the IPO-bound edtech startup has acquired the Singapore-based upskilling for ₹800 Cr. The combined entity will have more than 1,100 employees and will operate across over 25 offices.
- As part of the deal, Imarticus plans to launch a new BELLS school to offer AI-related courses to help expand its presence in the Southeast Asian market. This is the homegrown startup’s second acquisition in less than a year, after MyCaptain.
- The deal comes as Imarticus is looking to list on the bourses, eyeing a ₹1,000 Cr IPO. Founded in 2012, the startup offers professional education, executive education and corporate training programmes across finance, technology and business.
✈️ MakeMyTrip’s Q1 Show
- The travel tech major’s consolidated net profit plunged 65% YoY to $9.1 Mn in Q1 FY27 despite the Nasdaq-listed company’s revenue growing 6% YoY to $285.6 Mn.
- The OTA attributed its subdued performance to the depreciation of the Indian Rupee against the US dollar and dampened international demand due to the ongoing West Asia conflict. However, strong seasonal demand partially offset these pressures.
- On the operational front, MakeMyTrip’s gross bookings rose 19.9% YoY in constant currency to $2.85 Bn, led by growth across air ticketing, hotels and packages, and bus ticketing.
Inc42 Startup Spotlight
Can FireAI Build An AI-Driven Decision Layer For Brands?
For enterprises, the challenge has never been the lack of data. But turning this data into decisions is still slow, siloed and analyst-dependent. FireAI wants to fix this by connecting fragmented systems and suggesting what to do next, all through simple AI queries.
The Insight Layer: Founded in 2025, FireAI’s platform helps unify multiple data sources, traces performance dips through a causal chain and turns days of manual investigation into a structured analysis within minutes. This insight-led approach has helped the startup land 200+ clients like Bata, IRCTC and Plum.
Under The Hood: FireAI sits on top of existing ERPs, CRMs, accounting tools, databases and marketing platforms, connecting 700+ sources without moving raw data out of customer infrastructure. It uses a multi-agent layer to map business context, relationships and formulas before generating SQL queries via a fine-tuned Llama 3.3 model. This orchestration, not the LLM itself, is the startup’s core moat.
Breaking The Silo: FireAI charges an upfront integration fee plus subscription pricing, avoiding token-based billing. With 80-85% gross margins under its kitty, FireAI claims it is now clocking around ₹9 Cr in monthly recurring revenue. However, the path ahead may not be easy. Competition continues to rise from cloud providers, sales cycles remain long and accuracy remains a key benchmark for the industry.
With much on its plate, can FireAI become the decision layer that helps enterprises turn raw data into insights?
Infographic Of The Day
Electric two-wheeler registrations declined 1.7% month-on-month to 1.91 Lakh units in July, with TVS Motor bucking the broader trend by posting double-digit growth and retaining its leadership in the segment. Here is how the numbers stack up…