Ather Energy surges after record Q2 revenue; trims losses, expands market share

Ather Energy climbed 4.61% to Rs 653.90 after the company reported a strong Q2 FY26 performance with sharp growth in market share, volume, and financials.

On a standalone basis revenue from operations rose 54% year-on-year and 39.45% quarter-on-quarter to Rs 898.9 crore in Q2 FY26. For the quarter ended September 2025, Ather Energy reported total income of Rs 940.7 crore, up 57% year-on-year and 40% quarter-on-quarter, driven by sustained volume growth with stable pricing.

The company's loss after tax reduced to Rs -154.1 crore in Q2 FY26 from Rs -197.2 crore in Q2 FY25 and Rs -178.2 crore in Q1 FY26.

EBITDA performance improved during the quarter, supported by cost discipline. Margins strengthened by over 1,100 bps year-on-year and 600 bps quarter-on-quarter to reach (10%). EBITDA losses narrowed to Rs -90.7 crore in Q2 FY26 as against Rs -124 crore in Q2 FY25.

Total expenditure increased 43% YoY and 32% QoQ to Rs 1,031.4 crore. The cost of materials consumed climbed 46% YoY to Rs 736.4 crore, while employee benefits expenses were up 3.7% YoY to Rs 114 crore. Depreciation remained stable at Rs 42.6 crore, and interest expense declined 32% YoY to Rs 20.8 crore.

Vehicle volumes jumped 67% YoY to 65,595 units, while non-vehicle revenue, comprising software subscriptions, charging services, spares, and accessories, contributed 12% of total income, underscoring Ather's ecosystem-led growth model.

On the market front, Ather's share in India's EV two-wheeler market rose to 17.4%, up from 12.1% in Q2 FY25 and 14.3% in Q1 FY26. The company maintained leadership in South India with a 25% market share, while Middle India emerged as the fastest-growing region at 14.6%, driven by rising adoption in Gujarat, Maharashtra, and Madhya Pradesh.

Tarun Mehta, executive director & CEO, Ather Energy, said, Q2 has been a strong quarter, with steady growth in market share and continued progress on our path to profitability. We saw continued improvement in EBITDA margin with improving operating leverage. Our strategic focus on Middle India has delivered results, with several states scaling up rapidly. The Rest of India has also grown strongly, making our expansion more broad-based. In the South, we continue to lead the market and are seeing a new growth story driven by a denser retail presence across key cities. The response to Rizta and our ongoing retail expansion pan-India have been key contributors to this momentum.

Ather Energy designs and manufactures electric scooters. Its current E2W portfolio consists of the Ather 450 series, focused on performance-oriented customers, and the Ather Rizta, a convenience-first family scooter line launched in 2024.

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