Ather Energy narrowed its net loss to ₹154 crore in the second quarter of FY26, compared with ₹197.2 crore in the same period last year, supported by high vehicle sales and highest quarterly revenue.
The Bengaluru-based electric vehicle maker’s total revenue rose 57% year-on-year to ₹941 crore in the July–September quarter, driven by higher sales volume of its Rizta and 450 range of e-scooters. On a sequential basis, the electric two-wheeler maker’s net loss improved from ₹178.2 crore and revenue of ₹673 crore in Q1FY26.
The company delivered 65,595 units during the quarter, marking a 67% year-on-year increase from 39,305 units in Q2 FY25 and a 42% sequential rise from 46,078 units in Q1 FY26. Ather Energy’s market share in India’s electric two-wheeler segment climbed to 17.4% in Q2 FY26, up from 12.1% a year ago.
Total expenses increased 37% year-on-year to ₹1,094 crore, led by a 46% rise in raw material costs to ₹736 crore. Despite higher costs, margins improved steadily. Adjusted gross margin stood at ₹210.6 crore in Q2 FY26, up 84% year-on-year, which the company attributed to “value engineering, rich product mix, and rising non-vehicle revenue contributions primarily led by software subscriptions.”
Adjusted gross margin improved to 22% in Q2 FY26, an increase of 300 basis points over the previous year. Non-vehicle revenue—mainly from Ather’s ecosystem offerings such as software subscriptions, charging, accessories, spares, and service—accounted for 12% of total income.
“Q2 has been a strong quarter, with steady growth in market share and continued progress on our path to profitability,” said Tarun Mehta, Executive Director & CEO, Ather Energy, in the company’s Q2 FY26 earnings release. He added that the company’s strategic focus on Middle India has delivered results, with several states scaling up rapidly.
The company’s EBITDA loss narrowed to ₹90.7 crore in Q2 FY26 from ₹134 crore in the previous quarter. EBITDA margins improved by 1,100 basis points year-on-year and 600 basis points quarter-on-quarter to reach -10%.
Ather maintained its leadership in South India, with market share rising to 25% in Q2 FY26 from 19.1% a year earlier. Its share in Middle India nearly doubled to 14.6% from 8.8% year-on-year, driven by strong growth in states such as Gujarat, Madhya Pradesh, and Maharashtra, supported by an expanding retail network.
“The response to Rizta and our ongoing retail expansion pan-India have been key contributors to this momentum,” Mehta said.
The company added 173 new experience centres in the first half of FY26 and 78 during the second quarter, taking its total retail footprint to 524 stores across the country.
Shares of Ather Energy closed 5% lower at ₹624 on NSE.
Ather postpones commencement of Factory 3.0 to October 2026
Ather Energy has postponed the expected commencement date of its ₹2,000 crore Factory 3.0 in Chhatrapati Sambhajinagar (Aurangabad), Maharashtra, to October 2026 from the earlier planned timeline of July 2026. “The company has received the Environment Clearance approval in September 2025 which was originally not required as per prospectus dated April 30, 2025. This has shifted the expected date for commencement of production in Factory 3.0,” the company said in an exchange filing.
Ather currently operates two vehicle assembly lines and three battery pack lines at its Hosur facility in Tamil Nadu, with a combined installed capacity of 0.42 million electric two-wheelers (E2Ws) and 0.38 million battery packs per year. Once both phases of Factory 3.0 are completed, the company’s total installed capacity across all plants will rise to 1.42 million E2Ws annually.