Ather Energy has turned profitable for the first time, reporting a positive PAT for Q2 FY27. The EV maker saw wholesale volumes climb 42% YoY to 93,000 units, while EBITDA margins surged to 4.9%. The company also announced aggressive capacity expansion plans, targeting an annual capacity of 11.4 lakh units by Q2 FY28 to meet rising demand.
Ather Energy Reports Maiden Quarterly Profit
Ather Energy achieved a significant milestone in Q2 FY27, reporting its first-ever quarterly net profit. Wholesale volumes for the period stood at 93,000 units, reflecting a 42% year-on-year increase compared to 65,000 units in the same quarter last year.
Reader Takeaway: First positive PAT and improved margins drive growth, though managing capacity and commodity costs remains critical.
What just happened
Ather Energy has successfully transitioned to profitability this quarter. The company recorded an EBITDA margin of 4.9%, marking a significant 1,450 basis point improvement from the -9.6% margin reported in Q2 FY26. Total inquiries surpassed 10 lakh, signaling strong retail appetite for the brand's products.
Capacity Expansion and Strategy
The Board has approved an accelerated capacity expansion roadmap. The company is adding 6,000 units per month to its Hosur plant and expects the AURIC Phase 1 facility to contribute an additional 12,000 units per month by Q2 FY28. These moves aim to push total annual installed capacity to 11.4 lakh units, up from the previously planned 9.2 lakh units.
Margins and Revenue
Despite ongoing inflationary pressures in commodities like aluminum, copper, and plastics, the company achieved a 5.3% gross margin improvement over Q4 FY26. Management successfully utilized price hikes and strategic SKU management to buffer these costs. Non-vehicle revenue, driven by the AtherStack Pro software suite, now accounts for 15% of the total revenue.
Risks to watch
Supply constraints remain a primary hurdle, with management noting that they are currently unable to meet the full scale of market demand. While commodity prices have stabilized, they remain elevated, presenting a risk if volatility returns. Future success hinges on the timely execution of the proposed capacity ramp-ups.
What to track next
Investors should monitor the rollout of the Konarc model, which is currently being prioritized in northern markets. Additionally, the company plans to restart its dealer network expansion in the coming months, which will be a key indicator for sustaining sales velocity.