Ather Energy544397Capex expansion plan

CARE Ratings monitoring report: no deviation in IPO proceeds use; Factory 3.0 production start moved to December 2026

Ather Energy has shared CARE Ratings' Monitoring Agency Report for the quarter ended September 30, 2026, on use of its IPO proceeds.

By ScoutQuest · Mon 26 Oct 2026, 11:02 PM IST · 2 min read

87%Purchase orders raised as share of total project cost

Purchase orders raised as share of total project cost: 87%.

Project Cost Spent: 47% of total project cost spent (including land)
Purchase Orders Placed: purchase orders for 87% placed
Production Start Timeline: Factory 3.0 first-phase production start pushed again — now December 2026, from October 2026

Ather Energy has submitted the Monitoring Agency Report prepared by CARE Ratings for the quarter ended September 30, 2026.
The agency monitors, on a periodic basis, whether the money raised through the IPO of Rs. 2626.00 crore is being used for the purposes stated in the offer document.
The report also covers utilisation in relation to the company's Qualified Institutions Placement and Preferential Issue.

The prospectus had provided for Rs. 705.50 crore of spending on Factory 3.0 in FY26, which could not be utilised.
Reason given: Environment Clearance approval came in September 2025, although it was originally not required as per the prospectus dated April 30, 2025.
That shifted the expected start of first-phase production to October 2026, against the original timeline of July 2026.
Labour and fuel shortage, both on-site and at suppliers' end, caused by the Middle-East crisis, has now pushed the expected start of production to December 2026.

The company has spent 47% (including land cost) of the total project cost.
Purchase orders worth 87% of the total project cost have already been raised as on September 30, 2026.
Management states that the initial completion timeline for the entire project of March 2027 remains intact.
No cost overrun is anticipated, according to management, because of adequate contingency provisions.

Pre-construction approvals obtained for the E2W factory in Maharashtra include Consent to Establish, Town and Country Planning Approvals, GST Registration and ESI Registration.
Environmental Clearance has also been received during Q2FY26.
Other routine approvals such as Consent to Operate and the factory licence are expected in due course of time.

All technical requirements are sourced in-house; no third-party agreements exist for technical assistance or collaboration.
No favourable or unfavourable events affecting the viability of the objects are reported.
The agency states it does not perform an audit and does not independently verify the information or certifications it receives.

The report confirms that the money is going where it was said it would go; the agency records no deviation in objects or in the amount utilised.
The watch point is the timeline: the start of production at Factory 3.0 has been pushed from October 2026 to December 2026, the second such shift described in the report.
Offsetting that, spending and ordering are well advanced, with 47% of project cost spent and 87% committed through purchase orders, and management sees the March 2027 completion date and cost budget holding.

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