Electric two-wheeler maker Ather Energy Ltd reported a narrower net loss in the December quarter (Q3 FY26), as higher sales volumes and revenue growth helped reduce losses. The company posted a net loss of ₹85 crore for the three months ended December 31, compared with a loss of ₹198 crore a year earlier.
How did revenue and volumes perform in the December quarter?
Total income rose to ₹996 crore from ₹650 crore in the year-ago period. Ather said it recorded its highest-ever quarterly sales volumes at 67,851 units, a 50 per cent increase from a year earlier.
What drove the improvement in operating performance?
Losses continued to narrow on an operating basis, with the company reporting an EBITDA loss of ₹29.9 crore. Ather said the quarterly loss declined 45 per cent from the September quarter, reflecting progress towards profitability and more sustainable growth.
“Q3 has been a strong quarter for us. Robust festive demand, healthy volume growth, and improving market share together drove our best quarterly revenue and EBITDA so far. Over the past few quarters, we have stayed very focused on getting the fundamentals right by improving unit economics, margins, and operating leverage, and that effort is now clearly showing in the improvement in EBITDA,” said Tarun Mehta, executive director and chief executive officer, Ather Energy. “What is particularly encouraging is the strength of our ecosystem. AtherStack attach rates remain very high, and customer engagement is deepening even as our sales scale. All of this gives us confidence that the business is structurally prepared for sustainable, long-term growth.”
What contributed to revenue mix and margin expansion?
For the quarter ended December 2025, Ather Energy’s total income was driven by robust volume growth and a rising contribution of non-vehicle revenue, including software subscriptions, charging, accessories, spares and service, which rose to 14 per cent of revenue.
This strong revenue growth was accompanied by a sharp increase in margins. Adjusted gross margin (AGM) reached ₹251.3 crore in Q3 FY26, up 111 per cent year-on-year, while AGM excluding incentives improved to 23 per cent, up around 1,100 basis points year-on-year. This was driven by Ather’s value engineering capabilities and its ability to command strong premiums, reflecting a continued focus on healthier unit economics and structurally stronger margins.
How did EBITDA margins trend during the quarter?
EBITDA margin narrowed significantly to minus 3 per cent, driven by better unit economics, disciplined cost management and operating leverage as volumes scaled.
What was Ather’s market share performance across regions?
Ather Energy’s market share continued to strengthen in India’s electric two-wheeler market in Q3 FY26, with a pan-India market share of 18.8 per cent. The festive period delivered a strong boost, with Ather recording its highest-ever monthly registrations of 30,900 units, translating to a 20 per cent market share, highlighting robust consumer demand and growing brand preference.
South India remained Ather’s strongest region, retaining leadership with a 24.4 per cent market share, backed by deep market penetration, solid brand recall and a well-established retail network. Middle India continued its upward trajectory, with market share almost doubling to 17.4 per cent from 8.8 per cent in Q3 FY25. This was driven by strong performance across Gujarat, Madhya Pradesh, Maharashtra and Odisha, with Odisha almost doubling its market share over the last two quarters. In the Rest of India, market share rose to 12.6 per cent, reflecting steady growth across northern and emerging markets.
How is Ather expanding its retail and charging ecosystem?
Building on the momentum from previous quarters, Ather added 76 new Experience Centres (ECs) in Q3, taking its national network to 600 ECs. South India continued to have the deepest presence with 261 ECs, followed by Middle India with 202 ECs and the Rest of India with 137 ECs, supporting sustained growth and market share expansion across regions.
The company also continued to strengthen its ecosystem-led business model during the quarter. Adoption of AtherStack Pro remained strong, with 91 per cent of customers opting for it, alongside growing usage of software-led features focused on safety, convenience and navigation. Charging infrastructure also expanded steadily, with the Ather Grid network growing to 4,357 fast-charging points and neighbourhood chargers across India, Nepal and Sri Lanka.
 "Ather Energy narrows Q3 loss as revenue, volumes and margins improve")
