Ather Energy soars after best-ever quarter, losses narrow sharply

Ather Energy surged 12.06% to Rs 679.85 after the company delivered its strongest-ever quarter performance, with robust growth in market share and revenue alongside a sharp narrowing of EBITDA losses.

On a standalone basis, the company reported a net loss of Rs 84.60 crore in Q3 December 2025, narrowing sharply from a loss of Rs 197.80 crore in Q3 December 2024 and lower than the Rs 154.10 crore loss in Q2 September 2025.

Net sales jumped 50.20% year-on-year and 6.09% quarter-on-quarter to Rs 953.60 crore in December 2025 quarter.

For the quarter ended December 2025, Ather Energy reported total income of Rs 995.7 crore, up 53% YoY, 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% of revenue.

 

Adjusted Gross Margin (AGM) reached Rs 251.3 crore in Q3 FY26, up 111% YoY, while AGM excluding incentives improved to 23%, up ~1,100 bps YoY. This was driven by Athers value engineering capabilities and the ability to command strong premiums, reflecting a continued focus on healthier unit economics and structurally stronger margins.

EBITDA margin narrowed significantly to (-3%), driven by better unit economics, disciplined cost management, and operating leverage as volumes scaled. Losses continued to shrink, with EBITDA loss down to Rs 29.9 crore, and the quarterly loss narrowing by 45% compared to Q2 FY26, underscoring steady progress toward profitable, sustainable growth.

During the quarter, the company reported highest-ever quarterly volumes of 67,851 units, delivering 50% YoY growth. Ather Energys market share continued to strengthen in Indias electric two-wheeler market in Q3 FY26, with a pan-India market share of 18.8%. South India remained Athers strongest region, retaining leadership with a 24.4% market share. Middle India continued its upward trajectory, with market share almost doubling to 17.4% from 8.8% in Q3 FY25, driven by strong performance across Gujarat, Madhya Pradesh, Maharashtra, and Odisha. In the Rest of India, market share rose to 12.6%, reflecting steady growth across northern and emerging markets.

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. Charging infrastructure also expanded steadily, with the Ather Grid network expanding to 4,357 fast-charging points and neighbourhood chargers across India, Nepal, and Sri Lanka.

Tarun Mehta, executive director & CEO, Ather Energy, said, "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. 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."

Meanwhile, the company's board approved incorporation of a wholly owned subsidiary in Hong Kong to support the Companys critical procurement functions and enhance supply chain resilience within the Asia-Pacific (APAC) region.

Ather Energy is one of Indias leading electric two-wheeler manufacturers.

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