Is Ather Energy a better investment option compared to Ola Electric Mobility?

Synopsis:
Ather Energy Limited’s Q1 FY26 revenue rose 78.81% YoY, while net loss narrowed both YoY and QoQ, showing signs of improved financial performance and growth.

Ather Energy recently caught investor attention by hitting a 20 percent upper circuit, raising the question,  is it a better investment option than Ola Electric Mobility? In this article, we compare both companies based on their Q1 FY26 results, financial performance, analyst views, and overall business outlook to help investors make an informed choice.

With a market capitalization of Rs. 14,870.45 crores, the shares of Ather Energy Limited hit a 20 percent upper circuit of Rs. 416.70 per share on Thursday, up from its previous closing price of Rs. 347.25 per share. Since then, the stock has retreated and is currently trading at Rs. 399.25 per equity share. 

Q1 FY26 Result Walkthrough:

Coming into the quarterly results of Ather Energy Limited, the company’s consolidated revenue from operations increased by 78.81 percent YOY, from Rs. 360.5 crore in Q1 FY25 to Rs. 644.6 crore in Q1 FY26, and decreased by 4.66 percent QoQ from Rs. 676.1 crore in Q4 FY25.

Ather Energy Limited’s consolidated net loss reduced from Rs. 182.9 crore in Q1 FY25 compared to Rs. 178.2 crore in Q1 FY26. It also declined from Rs. 234.4 crore in Q4 FY25, reflecting a continued improvement in financial performance.

Similarly, Ola Electric Mobility Limited’s consolidated revenue from operations decreased by 49.64 percent YOY, from Rs. 1,644 crore in Q1 FY25 to Rs. 828 crore in Q1 FY26, and increased by 35.52 percent QoQ from Rs. 611 crore in Q4 FY25.

Ola Electric Mobility Limited generated 99.64 percent of its revenue from the automotive segment and 0.36 percent from cell sales in Q4 FY25.

Ola Electric Mobility Limited’s consolidated net loss increased from Rs. 347 crore in Q1 FY25 compared to Rs. 428 crore in Q1 FY26. However, it significantly improved from Rs. 870 crore in Q4 FY25, indicating a continued recovery in financial performance.

Financial Highlights:

Ather Energy Limited’s revenue has increased from Rs. 1,754 crore in FY24 to Rs. 2,255 crore in FY25, which is a growth of 28.56 percent. The net loss of the company has reduced from Rs. 1,060 crore in FY24 to Rs. 812 crore in FY25.

Correspondingly, Ola Electric Mobility Limited’s revenue has decreased from Rs. 5,010 crore in FY24 to Rs. 4,514 crore in FY25, which is a drop of 9.90 percent. The net loss of the company has increased from Rs. 1,584 crore in FY24 to Rs. 2,276 crore in FY25.

Analyst Viewpoint:

Ather Energy has received a positive outlook from brokerages like Nomura and HSBC. Both have given it a ‘buy’ rating, with price targets of Rs. 458 and Rs. 450, respectively. They expect strong growth in the electric two-wheeler market, which could boost Ather’s profits and value over time.

Likewise, Brokerages gave mixed reactions to Ola Electric’s Q1 results. BofA Securities kept an “Underperform” rating with an Rs. 45 target, noting weak growth but better-than-expected margins. Goldman Sachs raised its target to Rs. 63, appreciating efforts to improve cash flow, though it wants more clarity on sales and EBITDA margin.

Kotak Securities kept a “Sell” call with an Rs. 30 target. While losses narrowed and sales improved, weak demand and tough competition remain key concerns going forward.

Company Overview:

Ather Energy Limited was founded in 2013 and is a Bengaluru-based electric vehicle manufacturer specializing in smart and premium electric scooters. The company develops vehicles, battery packs, and proprietary software and operates India’s extensive EV charging network, Ather Grid. 

Similarly, Ola Electric Mobility Limited was founded in 2017 by Bhavish Aggarwal and headquartered in Bengaluru. The company designs and manufactures electric two-wheelers, including the Ola S1 scooter series and core EV components. The company operates the large-scale “Futurefactory” in Tamil Nadu and leads India’s two-wheeler electric vehicle market.

Written By – Nikhil Naik

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