E-scooter maker Ather Energy narrows losses in Q2 as revenue rises 57%

Ather's net loss for the quarter stood at ₹154 crore, narrowing from ₹197 crore in the same period last year

Electric scooter maker Ather Energy reported total income of ₹940.7 crore for the quarter ended September 30, up 57 per cent from a year earlier and 40 per cent from the previous quarter, driven by steady volume growth and stable pricing. Non-vehicle revenue — mainly from software subscriptions, charging services, accessories, spares and maintenance — accounted for 12 per cent of total income.

 

Ebitda (earnings before interest, taxes, depreciation and amortisation) performance improved meaningfully during the quarter, supported by continued cost discipline. Margins strengthened by over 1,100 basis points (bps) year-on-year and 600 bps quarter-on-quarter to reach (10 per cent).

   

Ebitda losses narrowed to ₹90.7 crore, while loss after tax stood at ₹154.1 crore in Q2FY26. This represents a narrowing from a loss after tax of ₹197 crore in the same quarter last year. The company said this progress reflects Ather’s strengthening financial performance and its consistent path toward profitability as it scales rapidly.

 

Margins continued to improve through consistent operational execution and disciplined financial management. Adjusted gross margin stood at ₹210.6 crore in Q2FY26, up 84 per cent year-on-year, driven by value engineering, a richer product mix and rising non-vehicle revenue contributions, primarily led by software subscriptions. Adjusted gross margin improved to 22 per cent in Q2FY26, up nearly 300 bps year-on-year.

 

“Q2 has been a strong quarter, with steady growth in market share and continued progress on our path to profitability. We saw continued improvement in Ebitda margin with improving operating leverage,” said Tarun Mehta, executive director and chief executive officer, Ather Energy. “Our strategic focus on Middle India has delivered results, with several states scaling up rapidly. The rest of India has also grown strongly, making our expansion more broad-based. In the South, we continue to lead the market and are seeing a new growth story driven by a denser retail presence across key cities.”

 

Market share

 

Ather Energy strengthened its position in India’s electric two-wheeler market with a 17.4 per cent market share in Q2FY26. This marks an increase from 12.1 per cent in Q2FY25 and 14.3 per cent in Q1FY26. The company delivered 65,595 units, marking a 67 per cent year-on-year increase from 39,305 units in Q2FY25 and a 42 per cent quarter-on-quarter increase from 46,078 units in Q1FY26.

 

Ather maintained its leadership in South India with an increased market share of 25 per cent in Q2FY26, up from 19.1 per cent year-on-year. Middle India emerged as the fastest-growing region, rising to 14.6 per cent in Q2FY26 from 8.8 per cent year-on-year, driven by significant growth in states such as Gujarat, Madhya Pradesh and Maharashtra, supported by an expanding retail presence and robust consumer demand. The rest of India also recorded strong growth, reaching 10 per cent in Q2FY26 from 6.1 per cent year-on-year, with notable gains in Jammu and Kashmir, Punjab and Rajasthan.

 

Expansion

 

Ather continued to scale its national footprint. The company added 173 new Experience Centres (ECs) in H1 and 78 new ECs during the quarter, expanding its retail presence to 524 ECs across India. This growth reflects a balanced expansion strategy across established metro markets and emerging tier-II and tier-III cities.

 

Ecosystem initiatives also advanced meaningfully during the quarter. The company rolled out AtherStack 7.0, introducing software features that enhance the riding experience and connectivity. Ather also strengthened its charging infrastructure, with the Ather Grid network expanding to 4,322 fast-charging points and neighbourhood chargers across India, Nepal and Sri Lanka, up from 4,032 in the previous quarter.