While disclosing a significant improvement in its financial performance for the December quarter, EV major Ather Energy’s management is expecting to see significant headwind in the near future due to volatile commodity and component markets. “We are preparing for the worst. It’s hard to say how this will evolve, but we think there’s a few percentage points of risk for the rest of the year,” Ather’s CEOTarun Mehta said in the post earnings call. The company’s manufacturing costs primarily arise from the key raw materials and components — silver, copper, aluminum, electronic components, among others — it procures. Costs of materials required for manufacturing its products accounted for about 70% of its total expenses for Q3 FY26. The management’s concern mirrors the sharp volatility seen in key raw materials in recent months. Until January 29, silver prices had surged 319% YoY in rupee terms, while gold was up 118%. Even after a steep correction on January 30—around 11% in silver and 4.3% in gold—silver was still up 268% YoY and gold 108% YoY. Against this backdrop, cofounder Tarun Mehta noted that while battery inputs such as lithium-ion cells remain relatively manageable, near-term cost pressures are more acute on the vehicle… Read MoreInc42 Media
