Ather Energy has finally managed to achieve a significant financial breakthrough. As a manufacturer of electric two-wheelers. Ather Energy has recorded its first quarter net profit of ₹1.26 crore in the July-September 2026 quarter. Against a net loss of ₹154.07 crore in the corresponding period a year ago.

It has become another milestone for the company that was previously among India's largest loss-making EV manufacturers. Ather Energy has managed to start making profits due to high sales of electric scooters, higher margins, and improved cost management.

Also Read: e-Sprinto G1 Electric Scooter Launched in India at Rs 89,999: The First Consumer Electric Scooter!

Revenue Up 63% Due to High Demand

The operating revenues of Ather Energy have increased 62.9% from Rs 898.88 crore in the year-ago quarter to Rs 1,464.24 crore in Q2 FY27. The total income has amounted to ₹1,526.95 crore in the quarter.

During the quarter, Ather Energy sold 93,211 electric scooters which is an increase of 42% from last year. Demand for the company's product line remained robust with the increase in customer inquiries by 109% to nearly 10 lakh units. The pre-orders have increased 100% to 1.80 lakh units.

Profit After Years of Losses

This ₹1.26 crore profit may be considered negligible. However, it is a big deal for a firm that has been making huge investments in research, manufacturing, charging infrastructure, and retail for several years now.

The EBITDA margin of Ather improved by ₹74.2 crore with an EBITDA margin of 4.9%. This is the second consecutive positive quarter of EBITDA for the firm. The firm made an EBITDA loss of ₹90.8 crore during the same time last year.

Some key reasons for the transformation are:

  • Improvement in scooter volumes and capacity utilisation
  • Improved product mix and pricing
  • Year-on-year improvement in adjusted gross margin by 160 basis points to 24%
  • Revenue from non-vehicles has grown, which includes subscriptions of software, accessories, services, and charging
  • Improved cost control on fixed costs despite rising material costs

The firm is still unprofitable for the first half of FY27. Its net loss has declined to ₹49.83 crore from ₹332.30 crore in the corresponding period last year.

Ather Increases Capacity to Meet Growing Demand

In order to cope up with growing demand, Ather is planning to increase capacity to 2.25 lakh units per year. At its Hosur manufacturing unit and new AURIC facility located in Chhatrapati Sambhajinagar, Maharashtra.

Capacity will be increased at Hosur manufacturing unit to 75,000 units per year. Increasing it from 4.2 lakh units to 4.95 lakh units till December 2026. First phase production at AURIC is expected to start in phases from December 2026. It will have an initial capacity of 5 lakh units per year.

Capacity at AURIC is then expected to be increased by 1.5 lakh units to 6.5 lakh units per year and is expected to be completed in Q2 FY28. Combined capacity of Ather once fully operational is expected to be around 11.4 lakh units per year. The company plans to invest around ₹122 crores on this expansion, of which ₹53 crores will be allocated to the new battery line at Hosur.

ELCTRIK Speaks

The first quarterly profit reported by Ather Energy is not just a financial achievement. But also an indication of the development of the Indian electric two-wheeler industry beyond subsidies and early adopters. The company has managed to prove that high volumes and healthy margins and cost management can lead to profitability. The true challenge lies ahead when the company will have to maintain its performance despite rising costs and stiff competition in the market. As the current demand outstrips supply and expansion plans are being executed. Ather appears to be well-placed for converting its achievements into future success.

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