Ather Energy turns profitable in a quarter for the first time: what the Q2 FY27 numbers actually show

The headline result, in context

Ather Energy, the Bengaluru-based electric two-wheeler maker, reported a consolidated net profit of Rs 1.26 crore for the quarter ended 30 September 2026, compared with a loss of Rs 154.07 crore in the same quarter last year and a loss of Rs 51.09 crore in the preceding June quarter. Revenue from operations rose 62.9% year on year to Rs 1,464.24 crore, from Rs 898.88 crore, and total income reached Rs 1,526.95 crore, from Rs 940.67 crore a year earlier.

The size of the profit matters as much as its direction. Total expenses were Rs 1,525.69 crore, so the company cleared its costs by only a small margin in the quarter. Other income of Rs 62.7 crore was also important: operating revenue alone was Rs 61.5 crore lower than total expenses, according to the reporting of the results. A first quarterly profit is therefore a milestone, not yet evidence of a comfortably profitable business.

What drove the improvement

Sales were the main driver. Ather sold 93,211 vehicles in the quarter, up 42% year on year, and its adjusted gross margin improved to 24%, up 160 basis points, which the company attributed to product mix and pricing decisions despite high input costs for materials such as aluminium, copper, lithium and crude-linked plastics. Earnings before interest, tax, depreciation and amortisation reached Rs 74.2 crore, with a margin of 4.9%, against a loss a year earlier and a 0.8% margin in the June quarter, making this its second consecutive EBITDA-positive quarter.

Non-vehicle revenue also grew in importance, rising to 15% of operating revenue from 12% a year earlier. That category includes the AtherStack Pro software package, the Ather Grid charging network, accessories, spares and service, and the company said 94% of customers opted for AtherStack Pro. Customer enquiries more than doubled to around 10 lakh and pre-orders rose to 1.80 lakh, according to the company reporting, while its Hosur plant operated at 98% capacity utilisation during peak production.

Expansion plans, and what is still unproven

Alongside the results, Ather's board approved about Rs 122 crore of capital spending to add a combined 2.25 lakh units of annual capacity. That includes up to Rs 58 crore to add 75,000 units a year at Hosur by December 2026, and Rs 64 crore to add 1.5 lakh units a year at its upcoming Factory 3.0 in Chhatrapati Sambhajinagar by the second quarter of FY28, including Rs 53 crore for a new battery line expected by the third quarter of FY28. The investments are to be financed through debt and internal accruals.

Two cautions remain. First, for the first half of FY27 the company was still loss-making overall, with a consolidated net loss narrowing to Rs 49.83 crore from Rs 332.30 crore a year earlier, so one profitable quarter does not erase the half-year loss. Second, reported share-price moves after results, including a rise of more than 10% on the day, describe market reaction on that day and are not a forecast of future prices; this article gives no investment advice.

Editorial disclosure

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