Ather Energy , a leading electric two-wheeler manufacturer in India, has reported robust financial results, demonstrating significant growth in market share, sales volume, and operational efficiency.

Key Financial Highlights

• Ather Energy achieved 67% year-over-year growth in unit sales, reaching 66,000 units.
• The company captured a 17.4% market share, up from 12.1% in the previous year.
• EBITDA margins improved by 1,100 basis points year-over-year through scale and cost optimization efforts.
• Total income surged to ₹940.70 crore, marking a 57% year-on-year increase and a 40% quarter-on-quarter growth.
• Adjusted Gross Margin improved to 22%, up by approximately 300 basis points year-on-year.
• Loss after tax stood at ₹154.10 crore for the quarter.

Market Performance

Ather Energy significantly strengthened its position in the Indian electric two-wheeler market:

• The company maintained its leadership in South India with a 25% market share.
• Middle India emerged as the fastest-growing region, with market share rising to 14.6% from 8.8% year-on-year.

Operational Expansion

The company continued its aggressive retail expansion strategy:

• Added 78 new Experience Centres during the quarter, bringing the total to 524 across India.
• Plans to expand its network to 700 touchpoints by FY26.
• Expanded presence in both established metro markets and emerging tier-2 and tier-3 cities.

Product and Technology Developments

Ather Energy introduced several enhancements to its product ecosystem:

• Rolled out AtherStack 7.0, introducing new software features to improve riding experience and connectivity.
• Expanded the Ather Grid network to 4,322 fast-charging points across India, Nepal, and Sri Lanka.

Management Commentary

Tarun Mehta, Executive Director & CEO of Ather Energy, stated, "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. Our strategic focus on Middle India has delivered results, with several states scaling up rapidly."

Regulatory Note

The company disclosed that due to China's export ban on certain heavy rare earth magnets, there were temporary adjustments in the manufacturing process for traction motors. This may affect Ather's ability to submit demand incentive claims under the PM E-DRIVE scheme, leading to a deferral of revenue recognition to the extent of ₹19.20 crore for specific vehicles sold during the quarter.

Ather Energy's results demonstrate the company's strong execution in expanding its market presence while improving operational efficiency. The significant growth in market share across various regions, particularly in Middle India, highlights the increasing adoption of electric two-wheelers and Ather's competitive positioning in the market.

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.