Revenue surges, losses shrink, and manufacturing expansion positions the EV maker for its next phase of growth.
Ather Energy delivered one of its strongest quarterly performances in Q1 FY27, significantly improving profitability while maintaining robust growth across revenue, deliveries, and manufacturing expansion. The electric two-wheeler manufacturer reported a 71% year-on-year decline in net loss to ₹51.1 crore, alongside its first-ever positive EBITDA, marking an important milestone in its journey toward sustainable profitability.
The company’s operating revenue surged 89% year-on-year to ₹1,216.9 crore, while total income, including other income, reached ₹1,259.7 crore. Although total expenses increased to ₹1,310.7 crore due to higher business activity and input costs, Ather’s operating performance improved substantially, with EBITDA turning positive at ₹9 crore, compared to an EBITDA loss of ₹106 crore in the corresponding quarter last year.
Ather attributed the improvement to strong sales volumes, calibrated price increases, and growing contributions from high-margin non-vehicle businesses. Revenue from software subscriptions, charging services, accessories, spare parts, and after-sales services accounted for 14% of operating revenue, highlighting the company’s expanding mobility ecosystem beyond vehicle sales.
Customer demand remained strong throughout the quarter. Ather delivered 83,173 electric scooters, representing 81% year-on-year growth, while customer enquiries increased 95% to 7.07 lakh and pre-orders jumped 158% to 1.5 lakh units. The company stated that demand continues to outpace current production capacity.
Despite rising costs for commodities such as copper, aluminium, lithium, and crude-linked materials, Ather improved its adjusted gross margin through strategic pricing, supplier negotiations, value engineering, and a stronger product mix.
The company is also preparing for its next growth phase through manufacturing expansion. The first phase of Factory 3.0 at AURIC, Chhatrapati Sambhaji Nagar, remains on track to begin production in Q3 FY27, adding 5 lakh units of annual manufacturing capacity. Once both phases are operational, Ather’s total installed production capacity will increase to 14.2 lakh electric two-wheelers annually.
Further strengthening its long-term strategy, Ather recently raised more than ₹2,500 crore through a Qualified Institutional Placement (QIP) and a preferential allotment. The capital will support manufacturing expansion, accelerate development of the next-generation EL platform, strengthen research and development, and expand its retail and charging infrastructure.
With improving profitability, growing demand, and continued investments in capacity and technology, Ather is positioning itself for the next stage of growth as India’s electric two-wheeler market continues to expand.
Source: Based on publicly available reporting, with additional editorial adaptation and analysis.
