Top 5 tech and startup stories of the day

Ather Energy reduced its losses in the March quarter, boosted by higher sales and improved profitability. This and more in today’s ETtech Top 5.

Also in the letter:
■ Swiggy, Zomato growth pangs
■ Stigma against AI users
■ Scroll ban for teens
Ather Energy loss narrows to Rs 234 crore in Q4 as revenue rises
Tarun Mehta, CEO, Ather Energy

Electric two-wheeler maker Ather Energy narrowed its Q4 FY25 net loss by 17% year-on-year to Rs 234.4 crore, driven by higher scooter sales and improved margins.

Key numbers:

• Operating revenue rose 29% YoY to Rs 676 crore.
• Total expenses increased 12.6% YoY to Rs 922.2 crore.
• Adjusted gross margin expanded by ~900 bps to 18%.
• Vehicle sales rose 35% to nearly 47,400 units in Q4.
• FY25 revenue stood at Rs 2,255 crore, up from Rs 1,753.8 crore in FY24.
• Full-year net loss narrowed 23.3%.
• Ather added 143 stores during FY25, taking its total network to 351 outlets.

Growth levers: On an earnings call, CEO Tarun Mehta said Ather’s broader product range and wider distribution would enable the company to scale efficiently and achieve profitability faster than peers, thanks to its capital-light model.

Muted listing: Ather became FY26’s first mainboard listing on May 6, debuting at Rs 328 on the NSE—a 2.18% premium. On the BSE, shares opened at Rs 326.05, up 1.57%.

Competitive landscape: With EV adoption rising, competition has intensified. Ather held a 14.3% share of India’s electric two-wheeler market in April 2025, trailing TVS Motor, Ola Electric, and Bajaj Auto, according to Vahan data.

Ather Energy shares closed at Rs 309.55, up 3.29% on Monday.

Also Read: Ather IPO: Flipkart founders’ early bet pays off as investors double gains despite muted debut
Defence, drone startups roll up sleeves to boost production

Homegrown defence and drone startups are witnessing a surge in demand as rising tensions with Pakistan push the Indian military to expand its arsenal.

Driving the news:

• Startups argue that India must scale up by tapping into its manufacturing and engineering strengths rather than depending on foreign suppliers.
• Experts point to Israel, where conflict-driven innovation has fuelled robust defence exports. While India has lacked a similar sense of urgency, they stress the importance of collaboration when national sovereignty is at stake.

Setting context:

• Industry stakeholders noted that the current geopolitical tensions have exposed the inefficiency of using expensive missiles to counter low-cost drone threats.
• They propose identifying five key manufacturers and linking them with upstream suppliers to address capacity constraints.
• Experts also called on banks to provide working capital against confirmed defence orders.

Qcomm race gets tough for Zomato, Swiggy; search for profits continues

Competition is intensifying for quick commerce leaders Blinkit and Instamart, as both new entrants and existing players ramp up efforts, according to recent post-earnings commentary from management and analysts.

Bigger footprint, smaller profits: Eternal and Swiggy expanded their store networks aggressively during the March quarter.

• Blinkit posted its highest-ever quarterly net addition, 294 new stores.
• Instamart crossed the 1,000-store milestone, adding 316 stores.

These bold expansions are taking a visible toll on the companies’ financials.

Blinkit’s margin woes: Blinkit CEO Albinder Dhindsa acknowledged that heightened competition has slowed the company’s margin improvement, which came in below expectations. Brokerage firm Motilal Oswal pushed its profitability forecast further out, now expecting Blinkit to break even only by FY27.

Also Read: ETtech Q&A | Replicating Blinkit’s quick commerce moves won’t ensure success: CEO Albinder Dhindsa

Instamart burning cash: Swiggy CEO Sriharsha Majety claimed Instamart’s Ebitda losses have peaked, but analysts remain cautious about the platform’s continued high cash burn. To illustrate: for every Rs 100 in gross order value (GOV), Blinkit lost Rs 2, while Instamart lost a staggering Rs 18.

Also Read: Race to deliver fast intensifies: quick commerce firms burning Rs 1,500 crore a month
Workers using AI tools seen as less competent: Study

Employees who rely on AI tools such as ChatGPT, Gemini or Copilot are often perceived as less competent, intelligent and hardworking than their peers, according to a new study from Duke University.

Driving the news: The study highlights a persistent social bias that may slow broader adoption of AI in the workplace despite its proven productivity benefits. Researchers conducted four online experiments involving 4,400 participants to explore how others view AI-assisted workers.

Study findings:

• In the first experiment, participants imagined using AI for tasks and expected colleagues to see them as lazy, incompetent or easily replaceable.
• The second experiment revealed that co-workers using AI were perceived as less competent, confident and independent.
• In the third, hiring managers rated candidates who used AI less favourably, though this bias lessened when the managers had personal experience with AI themselves.
• The final experiment found that when AI use was clearly appropriate and boosted productivity, negative perceptions dropped significantly.

Also Read: AI job loss: 40% of roles at risk, experts warn
ETtech Explainer: Amid online harm fears, nations push social media ban for under-16s

New Zealand prime minister Christopher Luxon has announced that his government will consider banning under-16s from social media. If approved, the law could be enacted before the 2026 election.

What’s happening: This move is part of a growing global trend, with several countries introducing laws to protect children online.

• India’s Digital Personal Data Protection (DPDP) Act prohibits data collection, tracking, and targeted advertising for children under 18 and mandates verified parental consent for platform access.
• Australia now bars under-16s from creating accounts on platforms like Facebook, Instagram, Snapchat, and TikTok.
• The EU’s Digital Services Act stopped targeted advertising for anyone aged 17 or younger.
• Other countries, including the UK, Canada and several US states, are also considering similar restrictions.