Ather Energy, a leading electric two-wheeler manufacturer in India, reported a net profit of ₹1.26 crore in the second quarter of the current financial year. This marks a significant turnaround from the ₹154 crore loss recorded in the same period last year. The company also improved from a net loss of ₹51 crore in the previous quarter.
- Ather Energy's revenue from operations rose 63% to ₹1,464 crore in Q2 compared to ₹899 crore last year.
- The company achieved an EBITDA of ₹11.42 crore, a major improvement from an EBITDA loss of ₹132 crore in the prior year.
- Plans are underway to expand manufacturing capacity at factories in Hosur, Tamil Nadu, and Chhatrapati Sambhajinagar, Maharashtra.
- Capital expenditure of approximately ₹122 crore has been approved for factory enhancements.
- Funds raised include ₹1,300 crore through qualified institutions placement and ₹200 crore via preferential share issuance.
- Following the earnings announcement, Ather Energy's stock price rose 15% to an intraday high of ₹1,587.
How did Ather Energy's financial performance improve in Q2?
Ather Energy reversed its losses from the previous year by reporting a net profit of ₹1.26 crore in the second quarter. This improvement was driven by a 63% increase in revenue from operations, which rose to ₹1,464 crore from ₹899 crore in the same quarter last year. The company also improved its earnings before interest, taxes, depreciation, and amortization (EBITDA) to ₹11.42 crore, compared to an EBITDA loss of ₹132 crore in the year-ago period. These figures indicate stronger operational efficiency and better cost management.
What are Ather Energy's plans for manufacturing expansion?
The company’s board has approved a capital expenditure plan of approximately ₹122 crore to enhance manufacturing capacity. This expansion will affect two key factories: the Hosur facility in Tamil Nadu and the Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra. The annual production capacity at the Hosur factory will increase from 420,000 units to 495,000 units. Meanwhile, Factory 3.0’s planned annual production capacity will rise from 500,000 units to 650,000 units. These expansions aim to meet growing demand for electric two-wheelers.
How did Ather Energy raise funds during the quarter?
During the quarter and the half-year ended September 30, 2026, Ather Energy raised significant capital through equity share issuances. The company allotted 1.08 crore equity shares at an issue price of ₹1,202 per share through a qualified institutions placement, raising approximately ₹1,300 crore. Additionally, it raised ₹200 crore by issuing 16.26 lakh shares at ₹1,230 per share on a preferential basis. These funds will support the company’s expansion plans and operational growth.
What was the market reaction to Ather Energy's earnings report?
Ather Energy’s shares experienced heavy buying interest after the earnings announcement. The stock price jumped 15% to reach an intraday high of ₹1,587. This performance outpaced the NIFTY Smallcap 100 index, which rose by 1.35% on the same day. The positive market response reflects investor confidence in the company’s turnaround and growth prospects.
Overall, Ather Energy’s Q2 results demonstrate a strong recovery and growth trajectory. The company’s improved profitability, increased revenue, and strategic investments in manufacturing capacity position it well for future expansion in the electric vehicle market.
