Ather Energy Reports 50% Revenue Growth But Losses Widen in Q3 FY26

Electric two-wheeler manufacturer, Ather Energy Limited announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showing strong revenue momentum even as losses deepened due to increased operational expenses and supply chain challenges.

For the quarter ended December 31, 2025, Ather Energy posted revenue from operations of ₹9,536 crores, representing a robust 50.2% year-on-year increase from ₹6,349 crores in Q3 FY25 (December 31, 2024).

Total income for the quarter stood at ₹9,957 crores, up 53.1% from Rs 6,501 crores in the corresponding quarter last year. Other income rose sharply to ₹421 crore from ₹152 crore in Q3 FY25.

However, the company's losses narrowed on a quarterly basis while remaining elevated compared to the prior year. Ather reported a loss before tax of ₹796 crores for Q3 FY26, compared to ₹1,978 crores in Q3 FY25, representing a 59.7% reduction in losses year-on-year.

The loss for the quarter stood at ₹846 crores, down 57.2% from ₹1,978 crores in Q3 FY25, showing significant improvement in the company's path to profitability.

Sequentially, the Q3 loss improved substantially from ₹1,541 crores in Q2 FY26 (September 2025), demonstrating a 45.1% quarter-on-quarter reduction in losses.

Nine-Month Performance (April-December 2025)

For the nine months ended December 31, 2025, Ather Energy demonstrated strong revenue growth:

• Revenue from operations: ₹24,971 crores, up 58.3% from ₹15,789 crores in the same period last year
• Total income: ₹26,093 crores, compared to ₹16,174 crores, representing a 61.3% year-on-year growth
• Loss before tax: ₹4,119 crores versus ₹5,779 crores in the previous year, marking a 28.7% reduction in losses
• Loss for the nine-month period: ₹4,169 crores, down from ₹5,779 crores, a 27.9% improvement

Material and Operational Costs

The company's cost of materials consumed increased to ₹7,573 crores in Q3 FY26 from ₹4,935 crores in Q3 FY25, a 53.5% rise. For the nine-month period, material costs jumped 52.8% to ₹19,966 crores from ₹13,069 crores.

Purchase of stock-in-trade stood at ₹302 crores in Q3 FY26, up 4.9% from ₹288 crores year-on-year. For nine months, this increased to ₹778 crores from ₹612 crores, a 27.1% rise.

Employee benefit expenses rose significantly to ₹1,224 crores in Q3 FY26, up 14.7% from ₹1,067 crores in Q3 FY25. For the nine-month period, employee costs increased 10.2% to ₹3,550 crores from ₹3,033 crores.

Finance costs stood at ₹193 crores for the quarter, compared to ₹286 crores in Q3 FY25, showing a 32.5% reduction. For nine months, finance costs decreased 22.2% to ₹642 crores from ₹821 crores.

Depreciation and amortization expenses reached ₹304 crores for Q3 FY26, down 30.4% from ₹437 crores in the year-ago quarter. For the nine-month period, depreciation stood at ₹1,211 crores compared to ₹1,258 crores, a 3.7% decline.

Other expenses increased to ₹1,588 crores in Q3 FY26 from ₹1,379 crores in Q3 FY25, representing a 15.2% increase.

Total expenses for Q3 FY26 stood at ₹10,753 crores, up 26.8% from ₹8,479 crores in Q3 FY25. For the nine-month period, total expenses increased to ₹30,212 crores from ₹21,953 crores, a 37.6% rise.

The company reported exceptional items of ₹50 crores for both Q3 FY26 and the nine-month period. This was primarily related to the impact of new labour codes.

The Government of India notified provisions of new labour codes in November 2025, consolidating 29 existing labour laws. This resulted in an increase in Ather's gratuity liability from past service costs and compensated absences liability by ₹13 crores, which the company has presented as an exceptional item. The company noted this as a non-recurring event.

Supply Chain Disruptions

The company disclosed that China's export ban on certain categories of heavy rare earth magnets disrupted global supply chains, impacting its operations. Ather's motor suppliers had to make temporary adjustments to manufacturing processes for traction motors, specifically regarding domestic magnet fitment.

This disruption led the company to defer submission of demand incentive claims under the PLI (Production Linked Incentive) scheme. Ather has deferred revenue recognition of ₹35 crores for the quarter and ₹76 crores for the nine-month period on vehicles sold during this timeframe.

The company's basic and diluted loss per share (face value of ₹1 each) stood at ₹2.22 for Q3 FY26, representing a significant 72.1% improvement from ₹7.95 in Q3 FY25.

For the nine-month period, the loss per share was ₹11.40, compared to ₹23.26 in the corresponding period last year, showing a 51.0% improvement.

The company's paid-up equity share capital stood at ₹382 crores as of December 31, 2025, compared to ₹380 crores in the previous quarter and ₹31 crores in December 2024. Other equity stood at ₹4,639 crores.

The company incorporated a wholly-owned subsidiary in Hong Kong to support the company's critical procurement functions and enhance supply chain resilience within the Asia-Pacific (APAC) region.

Comprehensive Income

Total other comprehensive income/(loss) for Q3 FY26 stood at ₹10 crores, compared to ₹2 crores in Q3 FY25. For the nine-month period, the comprehensive loss was ₹16 crores versus ₹17 crores in the prior year.

Total comprehensive loss for the quarter was ₹836 crores, down 57.3% from ₹1,976 crores in Q3 FY25. For the nine-month period, total comprehensive loss stood at ₹4,185 crores, compared to ₹5,796 crores, representing a 27.8% improvement.

For comparison, Ather Energy reported revenue from operations of ₹22,550 crores for the full year ended March 31, 2025, with a loss of ₹8,123 crores. The company's nine-month FY26 performance already exceeds its full-year FY25 revenue, indicating accelerated growth momentum.

The sequential improvement in losses, combined with strong revenue growth, suggests the company is making progress toward its profitability goals despite facing headwinds from supply chain disruptions and regulatory changes.