Ather Energy posted its first-ever EBITDA profit in Q1 FY27, narrowing net losses by 71% as operating revenue nearly doubled. The EV maker delivered 83,173 scooters, an 81% jump year-on-year, while Klassroom's BSE SME IPO hit 98% subscription on Day 2 and the Centre moved closer to reintroducing UPI merchant charges.
Here's what moved in Indian startups and fintech policy this week.
Ather's Q1 turnaround: the numbers
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Ather's Q1 FY27 results stand out in a quarter where EV two-wheeler registrations actually slipped 1.7% month-on-month to 1.91 lakh units in July. The company's EBITDA swung from a ₹106 Cr loss a year ago to a ₹9 Cr profit.
Net loss narrowed to ₹51.1 Cr from ₹176 Cr in Q1 FY26. Total expenses rose 54% to ₹1,310.7 Cr, but revenue growth outpaced spending. The adjusted gross margin expanded 82% to ₹282 Cr.
Volume did the heavy lifting. Customer demand outstripped production capacity, pushing deliveries to 83,173 units. Non-vehicle revenue from software subscriptions, charging, accessories, and after-sales services contributed 14% of operating revenue. That's high-margin income the company didn't have at scale two years ago.
Ather offset commodity cost spikes through calibrated price hikes, supplier negotiations, and an improved product mix. The company recently closed a ₹2,500 Cr rights issue and fundraise. A new manufacturing unit in Maharashtra is on track to start production in Q3 FY27, adding 5 lakh units of annual capacity. Once operational, total capacity will reach 14.2 lakh units per year.
A new scooter model is expected later this month.
Klassroom IPO nears full subscription
The edtech startup's BSE SME IPO was subscribed 98% on Day 2, with bids for 17.22 lakh shares against 17.58 lakh on offer. Retail investors oversubscribed their quota 1.32x. Qualified institutional buyers and non-institutional investors subscribed 68% and 67% of their portions respectively.
The issue comprises a fresh issue of up to 19.89 lakh shares and an offer for sale of up to 4.66 lakh shares. At the upper price band of ₹159, Klassroom targets ₹39 Cr at a ₹146 Cr valuation.
UPI MDR amendments head to Parliament
The Centre has proposed amendments to Section 10A of the Payment and Settlement Systems Act, 2007. The draft rules replace the blanket prohibition on merchant discount rate (MDR) and exempt only certain payment modes, notified by the government, from charges.
The rules are expected to be tabled in Parliament by August 5.
Under the proposal, businesses with annual turnover of ₹1 Cr to ₹1.5 Cr or more would attract an MDR of 0.05% to 0.07% on UPI transactions above ₹2,000. Industry players have welcomed the move. Several indicate the proposed rules could shift MDR pricing decisions directly under RBI control.
Logicity's Take
UPI's zero-MDR regime made it ubiquitous, but payment providers have long argued the model is unsustainable. A 0.05-0.07% charge on transactions above ₹2,000 is modest enough to avoid killing adoption, but it reopens the revenue question for fintech payment processors. For CFOs at high-volume merchants, this is a line item to model into FY28 projections.
Matel Motion raises ₹130 Cr for EV components
EV components maker Matel Motion raised $13.6 Mn (roughly ₹130 Cr) in a Series B round led by UC Impower. The company will use the funds to scale manufacturing, advance R&D, accelerate product development, ramp up hiring, and expand internationally.
Founded in 2017, Matel designs and manufactures synchronous machines and motor controllers for e-mobility, industrial applications, and agricultural pumps. The company last raised $4 Mn in its 2024 Series A.
Shiprocket, LEAP India, Battery Smart line up IPOs
Shiprocket, the ecommerce logistics unicorn, plans to launch its IPO within two weeks at a ₹7,000 Cr valuation. The company has SEBI approval and will file updated papers shortly.
LEAP India has filed its red herring prospectus for a ₹2,480 Cr IPO. The logistics-focused SaaS platform set a price band of ₹151-₹159. The issue comprises a fresh issue of ₹480 Cr and an OFS of up to ₹2,000 Cr.
Battery Smart, the battery swapping startup, will file its DRHP with SEBI by October. The company has raised more than $200 Mn to date and operates over 1,500 swapping stations across 75+ cities.
More context on recent IPO filings and startup dealmaking
Imarticus acquires Singapore's BELLS for ₹800 Cr
IPO-bound edtech startup Imarticus completed its first international acquisition, buying Singapore-based upskilling platform BELLS for ₹800 Cr. The combined entity will have more than 1,100 employees.
The deal marks a shift for Indian edtech companies. After a brutal funding winter and widespread cost cuts, the survivors are now acquiring to grow internationally rather than burning cash on domestic customer acquisition.
What this week signals
Ather's EBITDA flip matters because it arrived during a soft month for EV registrations. The company outgrew the market by controlling costs and building recurring revenue streams. For investors watching Indian EV plays, the question shifts from "can they scale?" to "can they hold margin as competition intensifies?"
The IPO pipeline is getting crowded. Shiprocket at ₹7,000 Cr, LEAP India at ₹2,480 Cr, Battery Smart filing by October. These are the companies that raised heavily in 2021-22 and now need to show public-market investors a path to profitability. The pricing they get will set benchmarks for late-stage private rounds through 2027.
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Source: Inc42 Media / Team Inc42
Manaal Khan
Tech & Innovation Writer
Produced with AI assistance and reviewed by the Logicity editorial team. Learn more in our Editorial Policy.
