Ather Energy has achieved a major financial milestone by reporting its first-ever quarterly net profit in the second quarter of FY2026-27. The Bengaluru-based electric two-wheeler manufacturer posted a net profit of ₹1.26 crore for the July–September quarter, marking a significant turnaround from the ₹154.07 crore loss recorded during the same period last year. Strong sales growth, improved product pricing and better operational efficiency contributed to the company’s improved financial performance.
The development positions Ather Energy among the leading electric two-wheeler manufacturers in India to achieve quarterly profitability, highlighting the growing importance of sustainable business models in the country’s rapidly expanding electric vehicle (EV) market.
Revenue Increases 63% as Electric Scooter Sales Grow
Ather Energy recorded revenue from operations of ₹1,464.24 crore in Q2 FY27, representing a year-on-year increase of approximately 63% compared with ₹898.88 crore in the corresponding quarter of FY26. The company’s total income reached ₹1,526.95 crore, reflecting strong business growth.
Electric scooter sales increased by 42% to 93,211 units during the quarter, supported by rising consumer demand and an expanding customer base. The company also increased its average monthly supplies to approximately 33,000 units, compared with 28,000 units in the preceding quarter.
The improvement in sales volumes has strengthened Ather’s position in India’s electric scooter market. The company continues to compete with established manufacturers, including TVS Motor and Bajaj Auto, alongside other electric two-wheeler brands.
Improved Margins Support Profitability
Ather Energy’s financial turnaround has been supported by improving operating margins and greater cost efficiency. The company’s EBITDA margin reached approximately 4.9% in Q2 FY27, compared with a negative 9.6% in the same quarter last year.
The improvement indicates that the company is becoming more efficient at converting revenue into operating earnings. Better product mix, pricing decisions and increasing production volumes have contributed to the progress.
However, the company remains cautious about the sustainability of its profitability. Rising prices of essential materials, including aluminium, copper, plastics and memory chips, continue to create cost pressures across the automotive industry.
Ather Energy CEO and co-founder Tarun Mehta has emphasised that increasing revenue and improving sales volumes remain important priorities as the company works to strengthen its financial performance.
Manufacturing Capacity Expansion Plans
To meet rising demand, Ather Energy is expanding its manufacturing capabilities across India. The company has approved an increase in annual production capacity at its Hosur facility in Tamil Nadu from 420,000 units to 495,000 units.
Additionally, its upcoming manufacturing facility in Chhatrapati Sambhajinagar, Maharashtra, is planned to increase its annual capacity from 500,000 units to 650,000 units.
Following these expansions, Ather Energy expects its total annual production capacity to exceed one million electric scooters. The expanded manufacturing infrastructure is intended to support higher sales volumes, improve product availability and strengthen the company’s ability to serve India’s growing EV market.
The company’s current product portfolio includes the Ather 450 series, the family-oriented Rizta electric scooter and the newer Konarc model, launched in August 2026.
Ather Energy’s Growth Outlook
Ather Energy’s first quarterly profit represents an important step in its journey towards financial sustainability. The company is now focusing on expanding production, strengthening its market presence and meeting growing demand for electric scooters.
Nevertheless, maintaining profitability will depend on several factors, including raw material prices, manufacturing efficiency, consumer affordability and competition in India’s electric two-wheeler segment.
With rising electric mobility adoption and continued investment in production infrastructure, Ather Energy’s latest financial results highlight the potential for Indian EV manufacturers to combine business growth with improved financial performance.
