EV SHOCKER! Ather Energy Surges Past Ola Electric in Sales & Profits - The Game Has Changed!

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Updated on 12 Nov 2025, 02:00 pm

Ather Energy has taken a commanding lead over its rival Ola Electric in the second quarter of fiscal year 2026 (Q2 FY26), surpassing it in both sales volume and key financial metrics. Ather reported a substantial 54% year-on-year (YoY) increase in operating revenue, reaching INR 898 Cr, and a 40% sequential jump. This robust growth contrasts sharply with Ola Electric, whose operating revenue declined by 43% YoY to INR 690 Cr.\nFurthermore, Ather Energy demonstrated improved financial health by narrowing its net loss by 22% YoY to INR 154.1 Cr, while Ola Electric posted a larger loss of INR 418 Cr. This turnaround for Ather is attributed to its aggressive expansion of its distribution network, which saw its experience centres double to 524, with a target of 700 by the end of FY26. The launch of its more affordable Rizta scooter has also boosted sales momentum.\nEconomically, Ather is focusing on unit economics, with its adjusted gross margin improving to 22%, up 300 basis points YoY, driven by a 19% reduction in the cost of goods sold per unit. The company is also enhancing non-vehicle revenue streams, which now constitute 12% of its total revenue, primarily through its AtherStack software subscriptions and its extensive charging network. These developments signal Ather's strategic shift from a hardware manufacturer to a technology and service platform provider.\nImpact\nThis news significantly impacts the competitive landscape of the Indian electric two-wheeler market, signaling Ather Energy's stronger market position and potential for future growth. It puts pressure on Ola Electric to revise its strategy and could influence investor sentiment towards the EV sector in India. The continued expansion and focus on profitability by Ather are positive signs for the overall growth and maturity of the Indian EV industry. The rating for the impact on the Indian stock market, specifically the auto/EV sector, is 7/10.\nDifficult Terms:\nYear-on-year (YoY): Comparison of financial metrics over the same period in consecutive years.\nSequentially: Comparison of financial metrics from one period to the immediate next period (e.g., Q2 vs. Q1).\nOperating Revenue: Income generated from a company's primary business activities.\nNet Loss: When a company's expenses exceed its revenue over a period.\nDistribution Expansion: Increasing the reach and availability of products through new sales channels or geographical areas.\nMarket Share: The percentage of total sales in an industry or sector that a particular company has.\nUnit Economics: Analyzing the revenue and costs associated with producing and selling a single unit of a product or service.\nAdjusted Gross Margin: A measure of profitability that reflects revenue minus direct costs of goods sold, excluding certain other expenses.\nBasis Points (bps): A unit of measure used in finance to describe the smallest change in a rate or percentage, where 100 basis points equal 1 percent.\nCost of Goods Sold (COGS): The direct costs attributable to the production or purchase of the goods sold by a company.\nFixed Cost Absorption: Spreading fixed costs over a larger volume of production or sales, thereby reducing the cost per unit.\nEBITDA Margin: Earnings Before Interest, Taxes, Depreciation, and Amortization as a percentage of revenue, indicating operational profitability.\nOperating Leverage: The degree to which a company uses fixed costs in its operations. Higher operating leverage means higher fixed costs and greater volatility in operating income.\nNon-Vehicle Revenue: Income generated from sources other than the sale of the primary product (e.g., software, services).\nAtherStack: Ather Energy's proprietary software platform for its electric scooters.\nAtherStack Pro: A premium subscription tier of AtherStack offering advanced features.\nRecurring Revenue Stream: Revenue that a company expects to receive on a regular, predictable basis.\nBattery-as-a-Service (BaaS): A business model where customers pay for battery usage rather than owning the battery outright.