Electric two-wheeler manufacturer Ather Energy has appointed 12 investment banks to raise ₹2,500 crore. The funds will support manufacturing expansion, including a new plant, and research efforts. This follows a strong FY26 where the company reported a 63% revenue jump and narrowing losses.
Electric two-wheeler maker Ather Energy is preparing to raise up to ₹2,500 crore through a mix of fundraising methods. The company has finalized a large syndicate of 12 investment banks, including HSBC Securities, Axis Capital, Nomura, and Goldman Sachs, to manage the process. The proposed plan includes ₹1,500 crore to be raised via a Qualified Institutional Placement (QIP) and the remaining ₹1,000 crore through other routes like preferential or rights issues.
Financial Context and Growth
The company is looking to raise capital following a period of rapid growth in FY26. Ather Energy reported revenue of ₹3,672 crore, representing a 63% increase compared to the previous year. The company also showed progress in reducing its financial losses, which narrowed to ₹517 crore from ₹812 crore in FY25. Improving operational efficiency also helped, with EBITDA margins narrowing to negative 7% compared to negative 23% in the prior year.
During the fiscal year, Ather Energy recorded annual sales of over 1.56 lakh units, achieving a market share of 18.6%. The momentum continued into the final quarter of the fiscal year, where the company delivered 83,418 vehicles, marking a 76% increase compared to the same period the year before.
Capital Allocation and Strategic Plans
Ather Energy intends to use the capital to fuel its next phase of growth. A primary focus is the expansion of its manufacturing footprint, notably the development of Factory 3.0 in Chhatrapati Sambhajinagar. The company also plans to allocate funds toward research and development and the strengthening of its sales and service network across India to cater to the growing demand for electric vehicles.
Sector Dynamics and Investor Monitorables
The electric two-wheeler segment in India is becoming increasingly competitive, with established players and new entrants vying for market share. Investors may track how efficiently the company utilizes the new capital to scale its production capacity at Factory 3.0. A key monitorable will be the company’s ability to sustain its revenue growth while continuing to narrow its losses and move toward profitability. The success of the QIP will depend on investor sentiment and broader market conditions at the time of launch, which is expected to occur in the coming weeks.