Ather Energy reported a profit of ₹1.26 crore for the September quarter, recovering from a ₹154 crore loss last year. Revenue rose 63% to ₹1,464 crore, reflecting strong demand. The company also announced a ₹122 crore capital investment to boost manufacturing capacity in Tamil Nadu and Maharashtra by 2028, aiming to scale operations against growing market competition.
Ather Energy, a player in the Indian electric scooter market, has reported a net profit for the second quarter of the 2027 fiscal year. The company posted a net profit of ₹1.26 crore, marking a significant turnaround from the net loss of ₹154 crore recorded in the same period a year ago. This performance highlights a shift in the company's financial standing as it continues to scale its operations.
The company reported revenue from operations at ₹1,464 crore, representing a 63% increase compared to the previous year. A major change is the EBITDA, or earnings before interest, taxes, depreciation, and amortization, which turned positive at ₹11.3 crore. This resulted in an operating margin of 0.77%, a notable recovery from the negative margins seen in earlier quarters.
To support long-term growth, the Ather Energy board has approved a capital spending plan of ₹122 crore. The investment is distributed between the existing manufacturing plant in Hosur, Tamil Nadu, and the upcoming Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra. The Hosur site will receive ₹58 crore to increase annual capacity by 75,000 units, along with a ₹53 crore investment for a new battery assembly line. These upgrades are scheduled for completion by late 2028. Additionally, the company is allocating ₹64 crore to its Maharashtra facility, aiming for a capacity of 6.5 lakh units by the second quarter of fiscal year 2028.
Ather Energy intends to fund these projects through a mix of debt and internal cash accruals. Scaling manufacturing capacity is a strategy to de-risk the supply chain and maintain competitiveness against other electric vehicle manufacturers such as Ola Electric, TVS Motor Company, and Bajaj Auto, who are also increasing their presence in the market.
The stock price climbed 10% to reach ₹1,518 on the National Stock Exchange following the announcement. Investors appear to be responding to the company's ability to achieve profitability while managing its costs.
For investors, the execution of these expansion projects will be a key factor to watch. Large manufacturing investments carry the risk of delays or cost overruns, which could affect the company’s cash flow. Furthermore, the electric scooter sector remains highly competitive, with frequent price adjustments and changing consumer preferences. Whether Ather can sustain these positive profit margins while scaling production will be the primary focus for the coming quarters.