Ather Energy Turns Profitable in Q2 FY27 as Revenue Jumps 63%

Electric two-wheeler manufacturer Ather Energy on Monday reported a consolidated net profit of Rs 1.26 crore for the second quarter of FY27, reversing a loss of Rs 154.07 crore in the corresponding period last year, supported by higher sales volumes, pricing actions and an improved product mix.

Revenue from operations rose 62.9% year on year to Rs 1,464.24 crore in the September quarter from Rs 898.88 crore a year earlier. Total income, including other income, increased 62.3% to Rs 1,526.95 crore from Rs 940.67 crore.

The company's total expenses increased 39.4% to Rs 1,525.69 crore from Rs 1,094.74 crore in the year-ago period, growing at a slower pace than revenue. Electric scooter sales volumes rose 42% year on year to 93,211 units during the quarter.

Ather reported earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 74.2 crore, compared with an EBITDA loss of approximately Rs 90.8 crore a year earlier. Its reported EBITDA margin improved by around 1,450 basis points to 4.9% from a negative 9.6%, marking the second consecutive quarter of positive EBITDA.

Raw material costs remained elevated during the quarter. The cost of materials consumed increased 59.8% year on year to Rs 1,176.57 crore from Rs 736.39 crore. Employee benefit expenses rose 5.9% to Rs 120.69 crore, while other expenses declined 8.2% to Rs 172.04 crore.

Finance costs increased to Rs 26.04 crore from Rs 20.79 crore, while depreciation and amortisation expenses rose to Rs 46.87 crore from Rs 42.52 crore.

Despite higher input costs for aluminium, copper, lithium and crude-linked plastics, the company's adjusted gross margin improved by 160 basis points year on year to 24%. Ather attributed the improvement to pricing decisions, product mix and other cost measures.

Non-vehicle revenue, comprising software subscriptions, charging services, accessories, spare parts and servicing, increased to 15% of revenue from operations from 12% a year earlier. The company said 94% of customers opted for its AtherStack Pro software package.

Demand also strengthened during the quarter, with customer enquiries rising 109% year on year to approximately 10 lakh, while pre-orders more than doubled to 1.80 lakh. The company said demand exceeded available production capacity, with its Hosur facility operating at 98% capacity utilisation during peak production in the quarter.

"We delivered a strong quarter, with robust topline growth and a positive bottomline, despite surging commodity prices and supply chain disruptions," said Tarun Mehta, Co-founder and CEO of Ather Energy.

To meet growing demand, the company announced plans to increase annual production capacity across its Hosur and AURIC facilities, with an investment of approximately Rs 122 crore.

The annual capacity at Hosur will increase from 4.2 lakh units to 4.95 lakh units by December 2026. Its upcoming AURIC facility in Chhatrapati Sambhajinagar is scheduled to begin commercial production in phases from December 2026, with an initial annual capacity of 5 lakh units.

The company also plans to expand AURIC's annual capacity to 6.5 lakh units, with the additional capacity expected to become operational by the second quarter of FY28. Together, the expansions will take Ather's installed annual capacity to approximately 11.4 lakh units.

For the first half of FY27, Ather's consolidated net loss narrowed to Rs 49.83 crore from Rs 332.30 crore in the corresponding period last year, while revenue from operations increased to Rs 2,681.16 crore from Rs 1,543.46 crore.