Ather Energy Q2 Results: Revenue Up 63%, Small Profit as Ather Adds 2.25 Lakh Units of Capacity

Ather Energy Q2 results came out on October 26, and the headline is a small one in rupee terms but a big one for the story: the electric scooter maker made money. Consolidated profit after tax for the September quarter was ₹1.26 crore, against a loss of ₹154 crore a year earlier, according to the company’s press release filed with NSE.

Revenue did most of the work. CNBC-TV18’s results liveblog put revenue at ₹1,464 crore, up 62.8% from ₹899 crore a year ago. On the company’s own count, consolidated total income was ₹1,527 crore, up 62% year on year.

Ather Energy Q2 results: volumes and margins

Ather sold 93,211 scooters in the quarter, 42% more than a year back. Volumes grew slower than income; the company credits volume growth, pricing actions and a change in product mix for the jump in income.

Margins moved the right way, which is what the Street has been waiting to see from a loss-making EV player. Ather reported EBITDA of ₹74.2 crore and an EBITDA margin of 4.9%, against minus 9.6% a year earlier and 0.8% in the June quarter. That makes it two EBITDA-positive quarters in a row. Adjusted gross margin rose 160 basis points to 24%, even though the company says aluminium, copper, lithium and crude-linked plastics stayed expensive through the quarter.

One thing to keep in mind: CNBC-TV18’s liveblog showed a much lower EBITDA figure of ₹11.3 crore. We have gone with the company’s reported numbers, but readers comparing the two should know they don’t match, and the filings we read don’t reconcile the gap.

Non-vehicle revenue, which covers the AtherStack Pro software pack, the Ather Grid charging network, accessories, spares and service, made up 15% of revenue from operations, up from 12%. Ather said 94% of buyers opted for AtherStack Pro.

Demand is running ahead of the factory

This is the part we found most telling. Ather says enquiries rose 109% to about 10 lakh and pre-orders more than doubled to 1.80 lakh in the quarter. Its Hosur plant ran at 98% capacity utilisation during peak production.

The wider market is moving fast too. Citing Vahan data, the company said electric two-wheeler registrations in India hit a record of about 5.98 lakh units in the quarter, up 82%, and EV penetration in two-wheelers rose to 11.2% from 7.8% a year earlier.

So the board approved more capacity. According to a separate exchange filing, Hosur’s annual capacity goes from 4.2 lakh to 4.95 lakh units, with the addition expected by December 2026. The new plant at AURIC in Chhatrapati Sambhajinagar, planned at 5 lakh units a year, will be taken to 6.5 lakh units, with that extra capacity due in Q2 FY28. Total capex earmarked is about ₹122 crore, funded through a mix of debt and internal accruals. Once both are done, Ather expects combined annual capacity of roughly 11.4 lakh units.

What it means

A ₹1.26 crore profit on ₹1,527 crore of total income is thin, and one bad quarter for commodity prices could flip it back. Still, the direction is clear: margins have climbed for two quarters and demand is outrunning supply. The real test comes when AURIC starts production. Filling a much bigger factory while keeping margins positive is harder than squeezing more out of a full one.

For more results from the same day, see our take on Sona BLW’s Q2 numbers, and if you want a framework for reading a results filing yourself, our guide on how to analyse quarterly results walks through it.

Disclaimer: This article is for information and education only and is not investment advice. Please do your own research or consult a SEBI-registered adviser before making any investment decision.