Here's why Ather Energy share price dropped 3% in trade today; details

Ather Energy share price: Ather Energy shares were under pressure on Friday, September 26, 2025, with the stock dropping up to 2.80 per cent to an intraday low of ₹541.30 per share. 

 

At 1:00 PM, Ather Energy share price was trading 1.80 per cent lower at ₹546.90 per share. In comparison, BSE Sensex was trading 0.38 per cent lower at 80,850.95 levels.

 

Why did Ather Energy stock price drop in trade today?

 

Ather Energy shares slipped in trade after the company disclosed supply chain disruptions following China’s export ban on certain heavy rare earth magnets.

 

The EV maker said the ban has forced its motor suppliers to make temporary adjustments in the manufacturing process for traction motors, leading to deviations from Phased Manufacturing Program (PMP) guidelines. 

 

 

As a result, Ather may be unable to submit demand incentive claims for up to 52,500 vehicles under the government’s PM E-DRIVE scheme, deferring claims worth about ₹26.25 crore until the Ministry of Heavy Industries grants an exemption.

 

The company added that it has already developed a Heavy Rare Earth Free (HREF) motor, received type approval from ARAI, and begun securing PM E-DRIVE eligibility certification for different models. 

 

“We assure you that the Company remains fully committed to the spirit of Make in India and to maintain full compliance with PMP guidelines,” the company said.

 

Last month, Ather Energy announced major product and technology updates at its third Community Day 2025. The EV maker unveiled the all-new EL platform, its first vehicle architecture since the 450, designed for scalability, versatility, and cost efficiency. It also introduced AtherStack 7.0 with voice-enabled interaction, a next-gen fast charger for quicker charging, and upgrades to its existing lineup. 

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Ather Energy IPO listing  

 

Ather Energy made a muted debut on the bourses on May 6, 2025, after its IPO. The stock listed at ₹328 on the NSE, just 2.18 per cent above its issue price of ₹321, while on the BSE it opened at ₹326.05, a 1.57 per cent premium. 

 

Ather Energy Q1 results

 

Ather Energy  began FY26 on a strong footing with robust sales, margin gains, and market share expansion. The company sold 46,078 units in Q1FY26, up 97 per cent year-on-year (Y-o-Y), led by strong demand for the Ather Rizta and the addition of 95 new Experience Centres. 

 

Revenue grew 83 per cent annually to ₹672.9 crore, with non-vehicle streams such as software, accessories, and services contributing 12 per cent of the total.

 

Profitability metrics also showed sharp improvement. Adjusted Gross Margin rose 117 per cent Y-o-Y to ₹154.8 crore, aided by value engineering, a premium product mix, lower battery costs, and rising non-vehicle revenue share. 

 

Gross margin (ex-incentives) expanded to 20 per cent, up ~700 bps Y-o-Y. Ebitda margin improved to -16 per cent, narrowing losses to ₹106 crore, while net loss declined to ₹178.2 crore. Market share climbed to 14.3 per cent nationally (versus 7.6 per cent a year ago), with Ather maintaining dominance in South India at 22.8 per cent and posting strong gains in Middle India at 10.7 per cent. 

 

Ather Energy, founded in 2013 by Tarun Mehta and Swapnil Jain, is an electric vehicle (EV) manufacturer focused on designing and developing its own two-wheelers and core components such as batteries, software, charging infrastructure, and accessories. Its flagship offerings include the Ather 450 series and the Ather Rizta series, targeting different customer segments.