Ather Energy , a leading electric two-wheeler manufacturer in India, has reported robust growth for the second quarter of fiscal year 2026, with significant increases in revenue and market share, despite ongoing challenges in the EV sector.

Financial Highlights

Ather Energy's Q2 FY26 performance showcased substantial year-over-year improvements:

The company's total income for the quarter reached ₹940.70 crore, marking a 57% increase from the same period last year. This growth was primarily driven by a 67% year-on-year increase in vehicle sales, with 65,595 units sold during the quarter.

Market Share Expansion

Ather Energy significantly expanded its market presence, achieving a 17.40% share in India's electric two-wheeler market, up from 12.10% in Q2 FY25. The company maintained its leadership in South India with a 25% market share, while also making substantial gains in other regions:

• Middle India: 14.60% market share (up from 8.80% YoY)
• Rest of India: 10.00% market share (up from 6.10% YoY)

Operational Developments

The company continued its retail expansion, adding 78 new Experience Centres during the quarter, bringing the total to 524 across India. This expansion strategy has been key to Ather's growth in both established metro markets and emerging tier-2 and tier-3 cities.

Ather also strengthened its charging infrastructure, expanding the Ather Grid network to 4,322 fast-charging points across India, Nepal, and Sri Lanka.

Financial Performance

Despite the strong growth in revenue and market share, Ather Energy reported a net loss of ₹154.10 crore for Q2 FY26. However, the company showed significant improvement in its EBITDA margin, which strengthened by over 1,100 basis points year-on-year to reach -10.00%.

The adjusted gross margin improved to 22.00% in Q2 FY26, up approximately 300 basis points year-on-year, driven by value engineering, a rich product mix, and rising non-vehicle revenue contributions.

Challenges and Outlook

Ather Energy faced some challenges during the quarter, including disruptions in the global supply chain due to China's export ban on certain categories of heavy rare earth magnets. This led to temporary adjustments in the manufacturing process for traction motors and may affect the company's ability to submit demand incentive claims under the PM E-DRIVE scheme.

Despite these challenges, Ather Energy's strong performance in Q2 FY26 demonstrates its resilience and growing market position in India's competitive electric two-wheeler sector. The company's focus on expanding its retail presence, improving operational efficiency, and investing in charging infrastructure positions it well for continued growth in the evolving EV market.

Internet Fund III Pte Ltd, associated with Tiger Global Management LLC, has completely divested its stake in Ather Energy through open market transactions. The fund sold its entire holding of 1,93,60,832 shares, representing a significant portion of Ather Energy's share capital.

Key Details of the Transaction

Impact and Implications

The sale marks a complete exit for Internet Fund III Pte Ltd from Ather Energy. This move could potentially signal a shift in the fund's investment strategy or its assessment of Ather Energy's future prospects.

Regulatory Compliance

The disclosure of this transaction was made in accordance with SEBI takeover regulations, demonstrating adherence to regulatory requirements for significant shareholding changes.

Ather Energy's Capital Structure

This transaction highlights the dynamic nature of institutional investments in the electric vehicle sector, which has been gaining significant attention in recent years. Ather Energy, known for its electric scooters, continues to be a player in India's growing EV market, despite this change in its investor base.