Ather Energy SHOCKS Investors! Loss SLASHED, Revenue SOARS 54% - Is This India's EV Champion?

Ather Energy has demonstrated robust financial and operational performance in the second quarter of FY26. The electric scooter manufacturer reported a net loss of ₹154 crore, marking a substantial 22% reduction from the ₹197 crore loss in the same period last year. This improvement in profitability is coupled with a strong revenue growth of 54%, reaching ₹898.9 crore compared to ₹583.5 crore in Q2 FY25. The company's market share now stands at 17.4%, with sales of 65,595 units during the quarter. Ather Energy has successfully expanded its footprint across various regions. Its stronghold, South India, saw market share increase to 25% from 19.1% year-on-year. The West Asia region emerged as the fastest-growing, climbing to 14.6% driven by states like Gujarat, Madhya Pradesh, and Maharashtra, attributed to expanded retail presence and consumer demand. The Rest of India also showed significant growth, reaching 10% market share, with notable gains in Jammu & Kashmir, Punjab, and Rajasthan. Tarun Mehta, Executive Director & CEO of Ather Energy, highlighted the quarter's success, stating continued market share growth and progress towards profitability, supported by improving EBITDA margins and operating leverage. He also emphasized the positive impact of their strategy on "Middle India" and the broad-based nature of their expansion. Retail expansion remains a key focus, with Ather adding 78 new Experience Centres during Q2 FY26, bringing the total network to 524 centres across India. The company also mentioned the positive response to its Rizta model contributing to this momentum. **Impact**: This news has a positive impact on investor sentiment towards the electric vehicle sector in India. Improved financial metrics and market share gains for Ather Energy suggest strong growth potential in the premium electric two-wheeler segment, potentially attracting more investment into the company and the sector. The expansion of its retail network signifies increased accessibility and customer reach, which are crucial for sustained growth. Rating: 7/10. **Difficult Terms**: * **EBITDA margin**: Earnings Before Interest, Taxes, Depreciation, and Amortization margin is a profitability metric that measures a company's operating performance before accounting for financing costs, taxes, and non-cash expenses. * **Operating leverage**: A measure of how a company's fixed costs affect its operating income. High operating leverage means small changes in sales can lead to large changes in operating income. * **Middle India**: Refers to the tier-2 and tier-3 cities and towns, often distinct from major metropolitan areas, that represent a significant and growing consumer market. * **Stronghold market**: A region where a company has a dominant or leading market position and strong brand recognition. * **Rizta**: Refers to Ather Energy's electric scooter model. * **Experience Centres (ECs)**: Retail showrooms or outlets where customers can view, test ride, and purchase Ather's electric scooters, and also get after-sales service.