Ather Energy Turns Profitable in Q2 FY27: Revenue Surges 63% to ₹1,464 Crore
Ather Energy has achieved a major financial milestone, reporting its first-ever quarterly net profit in Q2 FY2027 (July–September 2026). The Bengaluru-based electric two-wheeler manufacturer recorded a consolidated profit after tax (PAT) of ₹1.26 crore, reversing a net loss of ₹154.07 crore in the corresponding quarter last year.
The turnaround comes on the back of stronger revenue growth, improving operating efficiency and expanding electric scooter sales. Revenue from operations increased 62.9% year-on-year to ₹1,464.24 crore, compared with ₹898.88 crore in Q2 FY2026.
Ather Energy Q2 FY27: Financial Highlights
Financial Metric | Q2 FY27 | Q2 FY26 |
Revenue from operations | ₹1,464.24 Cr | ₹898.88 Cr |
Total income | ₹1,526.95 Cr | ₹940.67 Cr |
Total expenses | ₹1,525.69 Cr | ₹1,094.74 Cr |
Net profit / (loss) | ₹1.26 Cr | −₹154.07 Cr |
From Losses to Profitability
Ather Energy Quarterly Net Profit / Loss
Consolidated PAT, ₹ crore
Quarter | Pat |
Q2 FY26 | -154.07 |
Q1 FY27 | -51.09 |
Q2 FY27 | 1.26 |
Ather's improving bottom line represents a significant shift in its financial trajectory. The company reduced its quarterly loss to ₹51.09 crore during April–June 2026 before registering a small profit in the September quarter.
However, profitability remains at an early stage. Other income of approximately ₹62.7 crore made an important contribution to the positive bottom line. The company's operating revenue alone was still below total expenses, making sustained profitability an important metric to watch in future quarters.
Electric Scooter Sales Rise 42% to 93,211 Units
Ather Energy sold 93,211 electric scooters in Q2 FY27, registering 42% year-on-year volume growth.
The company also reported improving customer demand:
Customer enquiries increased 109% YoY to approximately 10 lakh.
Pre-orders more than doubled to 1.8 lakh units.
Adjusted gross margin improved to 24%, up 160 basis points.
Non-vehicle revenue contributed 15% of operating revenue, compared with 12% a year earlier.
The growing contribution from software subscriptions, charging services, accessories and after-sales operations is particularly important because it reduces the company's dependence on vehicle sales alone.
EBITDA Performance Improves
Ather reported EBITDA of ₹74.2 crore and a margin of 4.9% under the operating measure representing its second consecutive positive quarter on that basis.
Other financial reports cite EBITDA of approximately ₹11.4 crore and a 0.8% margin, reflecting a different calculation. These figures should not be presented interchangeably without specifying the reporting basis.
₹122 Crore Investment to Expand Production Capacity
Ather is preparing to increase manufacturing capacity across its facilities in Tamil Nadu and Maharashtra.
Manufacturing Facility | Existing / Planned Capacity | Expanded Capacity |
Hosur, Tamil Nadu | 4.20 lakh units/year | 4.95 lakh |
Factory 3.0, Maharashtra | 5.00 lakh units/year | 6.50 lakh |
Combined | 9.20 lakh | 11.45 lakh |
The Hosur expansion is targeted for December 2026, while the additional Maharashtra capacity is expected by Q2 FY28. The Maharashtra facility is still under development, so its capacity is not yet fully operational.
Auto Punditz Take
Ather Energy's first quarterly net profit is a significant development for India's electric two-wheeler industry.
The combination of 42% volume growth, improved margins and rising non-vehicle revenue suggests that the company's operating model is becoming more scalable.
However, the ₹1.26 crore quarterly profit remains modest relative to revenue of ₹1,464 crore, translating into a net profit margin of approximately 0.09%.
Moreover, Ather still reported a consolidated net loss of ₹49.83 crore for H1 FY27, although substantially lower than the ₹332.30 crore loss in H1 FY26.
The next few quarters will therefore be crucial in determining whether Ather can deliver sustained net profitability while simultaneously investing in production expansion and expanding its product portfolio.
The larger implication for India's EV industry is that profitable electric two-wheeler manufacturing appears increasingly achievable at scale, although Ather's results do not yet establish that the business has reached consistent, long-term profitability.
