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Ather Energy shares climb 14% after quarterly profit and expansion plan
Ather Energy shares climb 14% after quarterly profit and expansion plan
Shares of Ather Energy climbed nearly 14% to ₹1,575 apiece on Monday after the electric two-wheeler maker recorded a consolidated net profit for the September quarter, against a loss a year earlier, and announced plans to expand annual production capacity by 2. 25 lakh units to meet rising demand.
Shares of Ather Energy climbed nearly 14% to ₹1,575 apiece on Monday after the electric two-wheeler maker recorded a consolidated net profit for the September quarter, against a loss a year earlier, and announced plans to expand annual production capacity by 2.25 lakh units to meet rising demand.
The company recorded a consolidated profit after tax (PAT) of ₹1.26 crore in Q2, compared with a loss of ₹154 crore in the year-ago period. Consolidated total income rose 62% y-o-y to ₹1,527 crore, while volumes grew 42% to 93,211 units.
Ather recorded an EBITDA of ₹74.2 crore, marking its second consecutive EBITDA-positive quarter. Its EBITDA margin improved to 4.9% from -9.6% in Q2 FY26, supported by higher volumes, improved product mix and cost discipline. Adjusted gross margin rose 160 basis points y-o-y to 24%, despite elevated commodity costs.
Capacity expansion
The company plans to invest around ₹122 crore to expand capacity across its Hosur facility in Tamil Nadu and its upcoming AURIC plant in Chhatrapati Sambhajinagar, Maharashtra. At Hosur, annual capacity will increase by 75,000 units to 4.95 lakh units by December.
The AURIC facility, which has an initial annual capacity of 5 lakh units, will see a further expansion of 1.5 lakh, expected to come on stream by Q2 FY28.
The expansion will take Ather’s combined installed annual capacity to around 11.4 lakh units by Q2 FY28.
Demand continued to outpace supply during the quarter, with customer enquiries rising 109% y-o-y to about 10 lakh and pre-orders over doubling to 1.8 lakh units. The Hosur facility operated at 98% capacity utilisation during peak production.
“Demand has over doubled year-on-year this quarter, and to meet it, we are further augmenting our production capacity at Hosur and AURIC,” said Tarun Mehta, Co-Founder and CEO of Ather Energy.
Revenue mix
Non-vehicle revenue, including software subscriptions, charging, accessories and services, accounted for 15% of revenue from operations, up from 12% a year earlier. The company also launched Konarc, its first scooter on the new EL platform, expanding its portfolio beyond the performance-focused 450 series and family-oriented Rizta.
India’s electric two-wheeler registrations rose 82% y-o-y to a record 5.98 lakh units in Q2, with penetration reaching 11.2%, according to Vahan data.
F.S.Ferrari--INP
