Ather Energy, which recently filed for its initial public offering (IPO), has seen its losses escalate over the years, research from Yes Securities showed. The brokerage also analysed the financial metrics of its competitor Ola Electric to compare their performances.

What Happened: Ather recorded a loss of ₹887.3 crores in FY24 against ₹863.9 crores in FY23. An analysis of the financial metrics of Ola Electric and Ather Energy from FY22 to FY24 shows that although Ather was better positioned initially, its performance has been volatile over the years whereas Ola reduced its losses.

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Yes Securities’ research showed that Ather Energy’s loss for FY22 stood at 84% of its sales, which reduced to 48.5% in FY23 but shot up again to 60.6% in the following year.

On the other hand, Ola Electric recorded a loss which was a whopping 210% of its sales in FY22 but has been on a downward slope, coming in at 56% and 31.6% in the following years. In the latest quarter, the Bhavish Aggarwal-led firm’s loss translated to 21% of its total sales.

In FY24, Ather Energy lost ₹96,946 per vehicle it sold, whereas Ola Electric recorded a loss of ₹48,068 for each unit sold. That's when Ola's sales volume was more than three times its competitor's. Ola sold over 3 lakh vehicles in the period whereas Ather’s sales stood at a little over 1 lakh.

Here's a table showing the net loss per unit for Ather Energy and Ola Electric:

Last week, Ather Energy filed for its IPO as competitor Ola Electric marked a month on the exchanges. The Bengaluru-based firm will sell new shares worth ₹3,100 crore, the company said in its draft red herring prospectus. The IPO will include an offer for the sale of 2.2 crore shares by investors and promoters.

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