Ather Energy‘s net loss more than halved to ₹84.6 crore in the third quarter of FY26, driven by record two-wheeler sales and its highest-ever quarterly revenue. The loss also narrowed sequentially from ₹157 crore in Q2FY26.
The Bengaluru-based electric vehicle maker reported a 53% year-on-year jump in total revenue to ₹996 crore in the third quarter. Vehicle deliveries rose 50% to 67,851 units in Q3FY25, lifting Ather’s market share in India’s electric two-wheeler segment to 18.8%, from 12.3% a year earlier.
Non-vehicle revenue, comprising sales of Ather Stack software, spare parts and service income, accounted for 14% of total revenue during the quarter.
EBITDA margin
Ather’s EBITDA margin improved sharply by 1,600 basis points year-on-year to -3%, from -19% a year ago, driven largely by cost rationalisation. “The primary driver for us in the last couple of quarters has been operating leverage, which is really been driven on the back of expanding demand, particularly expanding demand for Ather Rizta,” Tarun Mehta, Executive Director & CEO, Ather Energy, said during the earnings call.
The company crossed the five-lakh cumulative sales milestone in Q3, with the family scooter Rizta alone contributing over 2 lakh units in less than two years since launch.
Total expenses rose 27% year-on-year to ₹1,075 crore, led by a 53% increase in raw material costs to ₹757 crore amid commodity price pressures. Mehta said the auto industry, particularly the electric vehicle segment, continues to face headwinds from commodity price volatility. “To better manage those, we have been working hard over the last few quarters and we’ve been very disciplined with our fixed costs,” he said.
Adjusted gross margin
Despite the rise in costs, margins improved. Adjusted gross margin more than doubled year-on-year to ₹251 crore in Q3FY26, while adjusted gross margin as a percentage expanded by 700 basis points to 25%. The improvement was supported by tighter control over production costs, with cost of goods sold per unit declining to ₹110,982 in 9MFY26 from ₹120,777 at the end of FY25.
Mehta said Ather’s upcoming next-generation EL platform would further reduce bill-of-materials costs. “It’s a lower cost architecture for us, which is something we can then use to lower our entry price points without losing our strong margin expectation. So, we are going to use that,” he said. The EL platform, slated for launch later this year, will underpin low-cost family scooters and electric motorcycles. Production will begin at the Hosur plant before being scaled up at Aurangabad Industrial City in Maharashtra.
Mehta, however, acknowledged that the launch of lower-priced vehicles on the EL platform could lead to some cannibalisation of the Ather Rizta models. “It also depend on the exact positioning of the first EL product and its pricing. EL has underlying better cost structures. So any customer who ends up choosing EL over Rizta on their own pre bill actually it helps us make more money out of it.”
During the quarter, Ather added 76 new Experience Centres (ECs), taking its national network to 600. South India remained the strongest market with 261 ECs, followed by Middle India with 202 and the rest of India with 137. “Once EL (platform vehicles) comes in, it will start another wave of future store opening. I do believe that a couple thousand stores in the next few years is a pretty healthy ask with the expanding portfolio,” Mehta said.
Shares of Ather Energy closed 3% lower at ₹610 on the NSE.