Ather Energy vs. Ola Electric: Evaluating the EV IPO Landscape

With Ather Energy finalizing its bank lineup for a ₹3,100 crore IPO in early 2026, the battle for the EV market is moving from the roads to the stock exchange. Ather has long been the "engineering" favorite, focusing on battery safety and vehicle performance. The upcoming listing will provide the capital needed to double their production capacity at the Hosur plant. Comparing Ather to Ola Electric is inevitable for any investor. While Ola has taken the "hyper-growth" and high-volume approach, Ather has maintained a premium positioning. Their revenue per vehicle is significantly higher, and their customer satisfaction scores in the luxury electric scooter segment remain the benchmark for the industry. The IPO valuation is expected to be around $2.5 billion. A key part of the investment thesis is the "Ather Grid," their proprietary charging network. As range anxiety remains a hurdle for EV adoption, owning the charging infrastructure is a powerful vertical integration that provides recurring revenue through subscription models. Challenges include the phase-out of FAME-II subsidies and the entry of traditional giants like Bajaj Auto and Hero MotoCorp (who ironically is an early investor in Ather). The company will need to show a clear path to net profitability within the next 4-6 quarters to satisfy the public market’s increasing demand for cash-flow-positive businesses. For the retail investor, Ather represents a cleaner, more stable entry into the EV story compared to the volatility seen in Ola Electric’s share price. If the pricing is right, this could be the "multi-bagger" of the 2026 tech listings. Keep an eye on the DRHP for details on their new low-cost platform intended to compete in the mass market.