Ather Energy reported a sharp reduction in net loss to ₹51.1 crore for the June quarter, supported by an 87% jump in revenue. The electric two-wheeler maker reached a positive EBITDA of ₹9 crore, driven by strong scooter sales and growth in high-margin services like software subscriptions.
Ather Energy has reported a strong financial recovery for the first quarter of the 2026-27 fiscal year, reflecting the growing adoption of electric vehicles in India. The company narrowed its consolidated net loss to ₹51.1 crore, down from ₹178.2 crore during the same period last year. This 71% reduction in losses comes alongside a substantial 87.2% year-on-year increase in total income, which reached ₹1,260 crore.
Operational Efficiency and Service Growth
A key highlight for the quarter was the company turning EBITDA positive, recording a profit of ₹9 crore compared to a loss of ₹106 crore in the previous year's first quarter. This improvement was supported by a 1,650 basis point rise in EBITDA margins, which reached 0.8%. The growth was fueled by the delivery of 83,173 electric scooters, an 80.5% increase year-on-year. Beyond vehicle sales, the company is diversifying its income streams. Revenue from software subscriptions, charging infrastructure, and after-sales support now contributes 14% to the total operational revenue, which helps improve overall profitability despite the ongoing volatility in raw material prices like lithium and copper.
Expansion and Market Context
The electric two-wheeler sector in India is experiencing rapid expansion, with industry-wide registrations reaching approximately 5.25 lakh units in the recent quarter. Ather Energy noted that EV penetration has crossed the 10% mark, signaling a broader shift in consumer preference. To capitalize on this demand, the company is progressing with its 'Factory 3.0' project in Chhatrapati Sambhaji Nagar, which is expected to begin operations by the third quarter of this fiscal year. This facility is planned to add an annual capacity of five lakh units, addressing concerns about production capacity struggling to keep pace with order volumes.
Monitoring Future Triggers
While the company has shown clear progress in margin management and volume growth, investors should track several factors as the year unfolds. The upcoming launch of the 'EL' platform scooter, scheduled for August 29, will be a key event to watch for its impact on product mix and market share. Furthermore, the company's ability to maintain these margins will depend on its success in managing input cost inflation through supply chain negotiations and production engineering. The final performance will also be influenced by how effectively the company executes the scale-up of its new manufacturing facility to meet the rising backlog of customer orders.