Ather Energy’s net loss narrowed to Rs 154 crore in the second quarter of FY26 from Rs 197.2 crore a year earlier, supported by an expanding retail network and new launches. Revenue surged 57% year-on-year (YoY) to Rs 941 crore in the July-September period, its best quarterly performance to date. Sequentially, losses improved from Rs 178.2 crore, while revenue rose from Rs 673 crore in Q1.
The company delivered 65,595 units in the September quarter, up 67% from 39,305 units a year earlier and 42% higher than Q1’s 46,078 units. Ather’s market share in India’s electric scooter segment climbed to 17.4% in Q2 FY26, compared with 12.1% in the same period last year.
“Q2 has been a strong quarter, with steady growth in market share and continued progress on our path to profitability,” said Tarun Mehta, Executive Director and CEO, Ather Energy. He added that the company’s “strategic focus on Middle India has delivered results, with several states scaling up rapidly.”
Ather maintained its leadership in South India, where market share rose to 25% from 19.1% a year ago. Its share in Middle India nearly doubled to 14.6% from 8.8%, led by strong growth in Gujarat, Madhya Pradesh, and Maharashtra.
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Margins strengthen despite higher costs
Total expenses rose 37% year-on-year to Rs 1,094 crore, with raw material costs up 46% at Rs 736 crore. Even so, Ather reported improving margins. Adjusted gross margin increased 84% year-on-year to Rs 210.6 crore, supported by “value engineering, a richer product mix, and rising non-vehicle revenue contributions primarily led by software subscriptions.”Adjusted gross margin improved to 22% in Q2 FY26, up 300 basis points from a year earlier. Non-vehicle revenue, from ecosystem services such as software, charging, accessories, spares, and maintenance, accounted for 12% of total income.
The company’s EBITDA loss narrowed to Rs 90.7 crore from Rs 134 crore in the previous quarter. EBITDA margins improved by 1,100 basis points year-on-year and 600 basis points quarter-on-quarter to -10%.
Expanding retail footprint
Ather continued to invest aggressively in retail expansion, adding 173 new experience centres in the first half of FY26, including 78 in the second quarter. Its total footprint now stands at 524 stores nationwide.
“The response to Rizta and our ongoing retail expansion pan-India has been a key contributor to this momentum,” Mehta said.
Shares of Ather Energy closed 5% lower at Rs 624 on the NSE on Monday.
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