Ather Energy narrowed its net loss by 71% YoY to ₹51.1 Cr in Q1 FY27 and reported positive EBITDA for the first time.
The sharp improvement in profitability signals that listed EV players are beginning to translate scale into operating leverage despite continued input cost pressures.
Revenue surged 89% YoY to ₹1,216.9 Cr, scooter deliveries jumped 81%, and the company remains on track to commission the first phase of its new manufacturing facility in Q3 FY27.
EV maker Ather Energy
narrowed its consolidated net loss by 71% to ₹51.1 Cr in the quarter ended June 30 (Q1 FY27) from ₹178.2 Cr a year earlier. On a sequential basis, its loss declined 49% from ₹100.2 Cr.
Operating revenue surged 89% YoY and 4% QoQ to ₹1,216.9 Cr. Including other income of ₹42.7 Cr, total income for the quarter came in at ₹1,259.7 Cr.
Meanwhile, total expenses for the quarter stood at ₹1,310.7 Cr, growing 54% YoY.
The company also turned EBITDA positive during the quarter, reporting an EBITDA of ₹9 Cr against an EBITDA loss of ₹106 Cr in Q1 FY26. Its EBITDA margin improved to 1% from -16% a year earlier.
Ather attributed the improvement to strong volume growth, calibrated price hikes, and a rise in contribution from high-margin non-vehicle revenue streams such as software subscriptions, charging services, accessories, spare parts and after-sales services. These businesses contributed 14% of operating revenue during the quarter, up from 13% a year ago.
During the quarter, Ather delivered 83,173 electric scooters, up 81% YoY. It said customer demand continued to outpace production capacity, with enquiries rising 95% to 7.07 Lakh and pre-orders surging 158% to 1.5 Lakh units.
Adjusted gross margin increased 82% YoY to ₹282 Cr. While commodity inflation drove up the cost of copper, aluminium, lithium and crude-linked materials, the company said it mitigated the impact through pricing actions, supplier negotiations, value engineering, and a better product mix.
This came amid continued momentum in India’s electric two-wheeler market. E2W registrations grew 68% YoY to about 5.25 Lakh units in the June quarter, while EV penetration crossed the 10% mark for the first time in June.
To meet the growing demand, Ather said the first phase of its Factory 3.0 at AURIC in Chhatrapati Sambhaji Nagar remains on track to commence production in Q3 FY27.
The facility’s first phase will add annual manufacturing capacity of 5 Lakh units, moving the company closer to its target of 10 Lakh units of annual production capacity. Once both phases become operational, Ather’s total installed manufacturing capacity will increase to 14.2 Lakh electric two-wheelers annually.
The company is also set to unveil the first production scooter based on its next-generation EL platform at Ather Community Day on August 29. The platform is expected to underpin a new family of products aimed at expanding Ather’s addressable market while improving manufacturing efficiency.
The expansion comes after Ather strengthened its balance sheet by raising more than ₹2,500 Cr through a QIP and a preferential allotment. The company said the capital will be used to expand manufacturing capacity, accelerate product development on the EL platform, strengthen R&D, expand its retail and charging network, and scale up the AURIC manufacturing facility.
Shares of Ather ended today’s trading session 0.98% higher at ₹1,273.15 on the BSE.
Source: Inc42 - Startups
