Ather Energy Turns EBITDA Positive in Q1 FY2027; Revenue Surges 89% to ₹1,217 Crore
- Team Autopunditz
- 3 hours ago
- 4 min read
Ather Energy reported a sharp improvement in its financial performance during the first quarter of FY2027, supported by record electric scooter deliveries, strong demand for the Rizta and improving operating leverage.
The Bengaluru-based electric two-wheeler manufacturer recorded revenue from operations of ₹1,216.9 crore during the quarter ended June 30, 2026. This represents an increase of nearly 89 percent compared with ₹644.6 crore reported during the corresponding quarter of the previous financial year.
Total income increased by 87.2 percent year-on-year to approximately ₹1,260 crore, compared with ₹673 crore in Q1 FY2026.
Ather Energy Q1 FY2027 Financial Highlights
Particulars | Q1 FY2027 | Q1 FY2026 | YoY Change |
Revenue from operations | ₹1,216.9 crore | ₹644.6 crore | +88.8% |
Total income | ₹1,259.7 crore | ₹672.9 crore | +87.2% |
Net loss | ₹51.1 crore | ₹178.2 crore | Loss narrowed 71% |
EBITDA | ₹9 crore | Loss of ₹106 crore | Turned positive |
EBITDA margin | 0.8% | -15.7% | Improved by 16.5 percentage points |
Electric scooter deliveries | 83,173 units | 46,078 units | +80.5% |
Net Loss Narrows 71 Percent
Ather Energy’s consolidated net loss narrowed substantially to ₹51.1 crore during Q1 FY2027, from ₹178.2 crore in the year-ago quarter.
The reduction in losses was supported by higher vehicle volumes, improved capacity utilisation, calibrated price increases and a growing contribution from the company’s non-vehicle businesses.
These include software subscriptions, charging services, accessories, spare parts and after-sales services.
Non-vehicle businesses contributed approximately 14 percent of Ather’s revenue from operations during the quarter, compared with 13 percent a year earlier.
Ather Turns EBITDA Positive
One of the most significant developments during the quarter was Ather Energy turning EBITDA positive for the first time.
The company reported consolidated EBITDA of approximately ₹9 crore, compared with an EBITDA loss of ₹106 crore in Q1 FY2026.
Consequently, the EBITDA margin improved to 0.8 percent from negative 15.7 percent in the corresponding quarter last year—an improvement of around 1,650 basis points.
The adjusted gross margin increased to approximately ₹282 crore despite rising input costs, including higher prices for copper, aluminium, lithium and crude oil-linked materials such as plastics and polymers.
Ather said it managed the commodity cost pressure through product-mix optimisation, price increases, value engineering initiatives and supplier negotiations.
Scooter Deliveries Rise 81 Percent
Ather Energy delivered 83,173 electric scooters during the quarter, representing growth of 80.5 percent over the 46,078 units delivered during Q1 FY2026.
Demand continued to be driven by the Ather Rizta, the company’s family-oriented electric scooter. The Rizta has helped Ather expand beyond its traditional performance-focused customer base associated with the 450 series.
The company also continued expanding its retail and charging network across Tier-II and Tier-III markets, supporting higher sales volumes and better operating leverage.
Ather said customer enquiries increased by approximately 95 percent to 7.07 lakh during the quarter, while pre-orders rose by 158 percent to around 1.5 lakh.
The company indicated that demand continued to exceed available production capacity.
Electric Two-Wheeler Market Expands Rapidly
India’s electric two-wheeler registrations increased by approximately 68 percent year-on-year to around 5.25 lakh units during the quarter, according to VAHAN registration data cited by the company.
Electric two-wheeler penetration crossed the 10 percent level for the first time in June 2026, reflecting accelerating consumer adoption of battery-powered scooters and motorcycles.
However, competition remains intense, with Ather competing against established manufacturers including TVS Motor and Bajaj Auto, along with EV-focused players such as Ola Electric.
Factory 3.0 Production to Begin in Q3 FY2027
To meet rising demand, Ather Energy is developing its new manufacturing facility—Factory 3.0—at the AURIC industrial city in Chhatrapati Sambhaji Nagar, Maharashtra.
The first phase of the facility remains on schedule to begin production during the third quarter of FY2027.
Once operational, the first phase is expected to provide an annual manufacturing capacity of approximately five lakh electric two-wheelers.
The additional capacity will be important for Ather as the company seeks to reduce supply constraints and expand its presence across northern, central and western India.
New EL Platform Scooter Coming on August 29
Ather Energy is also preparing to unveil the first production scooter based on its new EL electric vehicle platform on August 29, 2026.
The scalable platform is expected to underpin a new generation of more affordable and mass-market electric scooters.
The upcoming product could allow Ather to compete more aggressively in the high-volume electric scooter segment while sharing components and technology across multiple future models.
Auto Punditz Take
Ather Energy’s Q1 FY2027 results indicate that the company is beginning to benefit from scale.
The combination of an 81 percent increase in vehicle deliveries, nearly 89 percent revenue growth and the company’s first positive quarterly EBITDA represents a major improvement over the previous year.
Ather’s ability to maintain positive operating profitability will now depend on production expansion, commodity cost management and the market response to its upcoming EL-platform products.
With Factory 3.0 scheduled to commence operations during FY2027 and demand reportedly exceeding current production capacity, the company appears positioned for another year of strong volume growth.
However, intense pricing competition within India’s electric two-wheeler market could continue to place pressure on vehicle margins.