In a significant boost to its journey toward profitability, Ather Energy has reported a sharp reduction in its quarterly losses for the period ended December 31, 2025 (Q3 FY26). The Bengaluru-based electric two-wheeler pioneer saw its net loss narrow to ₹84.6 crore, a remarkable 57% improvement compared to the ₹197.5 crore loss recorded in the same period last year.
This financial turnaround was propelled by record-breaking vehicle sales and a surging top line, signaling that the company’s efforts to optimize unit economics are yielding tangible results.
Surge in Sales and Revenue
The cornerstone of Ather’s performance this quarter was its unprecedented sales volume. The company delivered 67,851 electric scooters, marking its highest-ever quarterly volume and a 50% year-on-year increase. This growth was largely driven by robust demand during the year-end festive season and the increasing popularity of its family-oriented model, the Rizta.
Parallel to the sales surge, quarterly revenue soared by 53% year-on-year, reaching ₹995.7 crore. While vehicle sales remained the primary revenue driver, non-vehicle revenue which includes software subscriptions (AtherStack Pro), charging services, and accessories showed increasing maturity, accounting for 14% of the total revenue.
Market Expansion and Dominance
Ather Energy’s footprint is no longer confined to its traditional stronghold in South India. While it maintains a commanding 24.4% market share in the South, the company has successfully expanded into “Middle India” and northern regions. Its pan-India market share has now climbed to 18.8%.
To support this growth, Ather aggressively scaled its retail presence, adding 76 new Experience Centres during the quarter. This brings its national network to a total of 600 outlets. Furthermore, its charging infrastructure, the Ather Grid, has expanded to 4,357 fast-charging points, reinforcing the brand’s ecosystem across India, Nepal, and Sri Lanka.
Operational Efficiency and Margins
The narrowing of losses is not merely a byproduct of higher sales but a result of tighter cost controls and improved operational leverage. The company’s EBITDA margin improved by 1,600 basis points year-on-year, landing at (-3%), bringing the firm to the cusp of operational breakeven. Additionally, the adjusted gross margin more than doubled year-on-year to ₹251.3 crore.
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However, the quarter was not without its challenges. Total expenses rose to ₹1,075 crore, primarily due to the rising cost of raw materials, specifically battery packs and components, which account for roughly 69% of the total cost structure. Management also noted minor supply chain headwinds resulting from global magnet export fluctuations.
The Road Ahead
Tarun Mehta, CEO and Co-founder of Ather Energy, expressed confidence in the company’s trajectory. “Q3 has been a strong quarter for us. By focusing on the fundamentals improving unit economics and operating leverage we are seeing a clear path to profitability. The strength of our ecosystem, with 91% of customers opting for our software subscriptions, proves that we are building a sustainable, tech-led business.”
As the electric vehicle (EV) market stabilizes and legacy players like TVS and Bajaj ramp up their offerings, Ather’s ability to reduce losses while hitting record sales suggests it is well-positioned for its next phase of growth. With its market capitalization standing at approximately ₹23,292 crore, the industry is watching closely as Ather nears its goal of becoming a profitable, publicly listed entity.
