Ather Energy Returns to Profitability in Q2 on Strong Sales Growth

Electric two-wheeler manufacturer Ather Energy reported a consolidated net profit of Rs 1.26 crore for the second quarter of fiscal year 2027, marking a turnaround from a net loss of Rs 154 crore during the same period last year. The company cited increased operational efficiency and higher sales volume as primary drivers for the quarterly performance.

Key Performance Highlights

• Profit turnaround: The company shifted from a Rs 154 crore loss in the year-ago quarter to a Rs 1.26 crore profit.
• Revenue growth: Operational revenue climbed 63% year-on-year to Rs 1,464.24 crore.
• Sales volume: Ather sold 93,211 vehicles during the quarter, representing a 42% increase from the previous year.
• Production expansion: The company plans to increase annual capacity to 4.95 lakh units at its Hosur plant by December 2026.
• New facility: A second manufacturing site in Maharashtra is scheduled to begin commercial production in December 2026.

Revenue and Operational Performance

Ather Energy reported total income, including other sources, at Rs 1,526.95 crore, a 62% increase over the previous year. The company achieved positive EBITDA for the quarter, with consolidated adjusted gross margins rising 160 basis points to 24%. This improvement occurred despite rising input costs for materials such as aluminium, copper, lithium, and crude-linked plastics. Management attributed the margin gains to strategic pricing decisions and changes in the product mix.

Non-vehicle revenue, which includes services, spare parts, charging infrastructure, and subscriptions, grew to 15% of total operational revenue, up from 12% in the prior year. Additionally, 94% of customers subscribed to AtherStack Pro.

Capacity and Future Outlook

Demand for electric vehicles continues to outpace current manufacturing capabilities. Enquiries for the quarter rose 109% year-on-year to 10 lakh, while pre-orders more than doubled to 1.8 lakh. The Hosur facility in Tamil Nadu operated at 98% capacity utilization during peak production times.