Ather Energy sizzles on Q2 profit turnaround
Revenue from operations rose 62.90% year on year to Rs 1,464.24 crore from Rs 898.88 crore.
EBITDA stood at Rs 74.17 crore, compared with a loss of Rs 90.76 crore in Q2 FY26. The EBITDA margin improved to 4.9% from negative 9.6% a year earlier, marking the company's second consecutive EBITDA-positive quarter. Adjusted gross margin increased 160 basis points year on year to 24%.
Profit before tax stood at Rs 1.26 crore in Q2 FY27, compared with a loss of Rs 154.07 crore in Q2 FY26.
Total expenditure increased 39.64% year on year to Rs 1,499.65 crore from Rs 1,073.95 crore. Raw material consumption rose 59.78% YoY to Rs 1,176.57 crore. Employee expenses increased 5.91% to Rs 120.69 crore, while interest costs climbed 25.25% to Rs 26.04 crore. Depreciation rose 10.23% YoY to Rs 46.87 crore.
Ather Energy sold 93,211 electric two-wheelers during the quarter, up 42% year on year from around 66,000 units. Customer enquiries increased 109% to about 10 lakh, while pre-orders more than doubled to 1.80 lakh units.
The company plans to increase annual production capacity at its Hosur facility by 75,000 units, taking it to 4.95 lakh units by December 2026. It also plans to expand annual capacity at its AURIC facility by 1.5 lakh units to 6.5 lakh units, with the additional capacity expected to begin production by Q2 FY28. The expansions will take Ather's combined installed annual capacity to approximately 11.4 lakh units. The company plans to invest around Rs 122 crore in the capacity enhancements.
Non-vehicle revenue, including income from software subscriptions, charging, accessories, spares and services, accounted for 15% of revenue from operations, compared with 12% a year earlier. The company said 94% of customers opted for AtherStack Pro.
Ather Energy co-founder and CEO Tarun Mehta said demand had more than doubled year on year during the quarter. He added that the company was expanding production capacity at Hosur and AURIC to meet rising demand, while its new Konarc scooter would help it reach a wider customer base.
Ather Energy is an Indian electric two-wheeler manufacturer. The company designs and manufactures electric scooters, with its portfolio comprising the 450 series, Rizta and Konarc. It also operates Ather Grid, a fast-charging network, and offers software services, accessories, spare parts and after-sales support.
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