Ather Energy Posts Quarterly Profit of 1.26 Crore Rupees After 154.07 Crore Loss
Key Facts
Ather Energy posted consolidated net profit of 1.26 crore rupees in the quarter from July to September 2026, compared with a loss of 154.07 crore rupees in the same period a year earlier, according to results reported by India Today on October 26. The return to profitability came as revenue from operations rose 62.9% year on year to 1,464.24 crore rupees, from 898.88 crore rupees. Wholesale sales increased 42% to 93,211 units, from 65,595 units a year earlier. But net profit remained modest relative to revenue, while the company recorded a broader turnaround in operating performance. Earnings before interest, taxes, depreciation and amortization were 74.17 crore rupees, compared with a loss of 90.76 crore rupees in the year-earlier quarter.
The EBITDA margin improved to 5% from negative 10% a year earlier, and Chief Executive Tarun Mehta said the margin rose from negative 9.6% in the second quarter of FY26 to positive 4.9% in the second quarter of FY27, an increase of 1,450 basis points year on year. Mehta added that the company recorded positive operating profit for the first time even after excluding other income. The company attributed the margin improvement mainly to product mix and pricing decisions, despite higher input costs. The average selling price per vehicle rose to 1,33,507 rupees from 1,20,183 rupees in the year-earlier period, while adjusted gross margin increased to 24% from 22%. Mehta said the company’s priority for now was not to maximize net profit, but to grow revenue and improve sales volume.
Demand indicators released by the company point to mounting pressure on available capacity: customer inquiries rose 109% year on year to about 10 lakh in the second quarter of FY27, and pre-orders increased 108% to about 1.8 lakh. The Hosur plant in Tamil Nadu operated at 98% capacity utilization during the quarter, and the company estimated unrealized sales at about 18,000 to 20,000 units a month. These figures reflect demand exceeding what current capacity can meet, based on the company’s estimate of unrealized sales. Management said Ather would add annual capacity of 75,000 units at Hosur in December 2026. It also plans to add 1.5 lakh units a year at its Chhatrapati Sambhajinagar plant in the second quarter of FY28, with installed capacity expected to reach 1.14 million units a year by that quarter.
Alongside the capacity expansion, Ather plans a phased rollout of the KONARC model, targeting the launch of the base SR1 version in the fourth quarter of FY27, followed by higher-spec versions. Management said it does not plan further price increases over the next few quarters and expects commodity prices to remain broadly stable in the third quarter of FY27. Against a backdrop of market expansion, electric vehicles accounted for 11.6% of India’s motorcycle and scooter market in September 2026, their highest level. But Ather’s market share was 15.1% in the second quarter of FY27, compared with 17.2% a year earlier, despite growth in sales volume. The company’s shares rose 10% after the results were announced on October 26, according to India Today.