Ather Energy , a leading player in India's electric two-wheeler market, has reported a robust performance for the second quarter of fiscal year 2026, marking significant growth and market share gains despite challenges in the supply chain.

Strong Volume Growth and Market Share Expansion

Ather Energy achieved sales of 66,000 units in Q2 FY2026, representing a substantial 67% year-on-year growth and a 42% increase quarter-on-quarter. This impressive performance has propelled the company's market share to 17.40%, cementing its position as a key player in the electric two-wheeler segment.

Financial Performance

The company's total income reached INR 940.00 crores, its highest ever, marking a 57% year-on-year increase. Adjusted gross margin stood at INR 210.00 crores, or 22.00% on a percentage basis, showing a 300 basis points improvement year-on-year.

EBITDA Improvement

In a significant milestone, Ather Energy's EBITDA losses reduced to below 10% for the first time, demonstrating an 1,100 basis points improvement year-on-year and a strong 600 basis points improvement quarter-on-quarter.

Expansion and Distribution

Ather Energy continued its expansion strategy, increasing its retail presence to 524 stores across India. This expansion has been particularly strong in Middle India, comprising states like Chhattisgarh, Gujarat, Maharashtra, Madhya Pradesh, and Odisha, where the company's market share grew from 4.00% in Q1 FY2025 to 14.50% in Q2 FY2026.

Product Portfolio and Innovation

The company introduced new variants to fill gaps in its portfolio, including high-range options for its 450S and Rizta S models, offering up to 160 kilometers of range. Ather also launched a Battery as a Service (BaaS) option, reducing the upfront price of the Rizta S to as low as INR 76,000.00.

Challenges and Mitigation

Despite facing challenges due to rare earth supply chain issues, which impacted subsidy filings for the majority of vehicles in Q2, Ather Energy managed to maintain strong growth. The company expects this to be a one-time impact as the issue was resolved during the quarter.

Future Outlook

Tarun Mehta, Executive Director and CEO of Ather Energy, expressed confidence in the company's trajectory, stating, "Q2 was a strong quarter for us. Units sold were up at 66,000 units, which is a 67% growth year-on-year and a 42% growth quarter-on-quarter." He also highlighted the company's focus on expanding in new markets and improving product offerings.

As Ather Energy continues to innovate and expand, it remains well-positioned to capitalize on the growing demand for electric two-wheelers in India, with a strong foundation for sustained growth in the coming quarters.

The National Investment and Infrastructure Fund (NIIF), a government-backed entity, has announced its intention to sell a significant stake in Ather Energy , the Bengaluru-based electric two-wheeler manufacturer. This move comes as Ather Energy continues to strengthen its position in the competitive electric vehicle market.

Stake Sale Details

NIIF has offered to sell 89 lakh shares, representing a 2.34% equity stake in Ather Energy. The proposed sale is valued at Rs 551.80 crore, with shares priced at Rs 620 each. This price represents a 1.4% discount to Ather Energy's closing price on Wednesday.

HSBC Securities and Axis Capital have been appointed to manage this transaction.

NIIF's Current Holdings

Prior to this offer, NIIF held a 4.67% stake in Ather Energy, valued at approximately Rs 1,118 crore as of September. Additionally, NIIF's affiliate, the India Japan Fund, owns a 5.91% stake in the company.

Ather Energy's Market Performance

Ather Energy has been making significant strides in the electric two-wheeler market:

• Achieved the third position in the market with a 17.2% share in September, up from 14.3% the previous year
• Quarterly loss narrowed to Rs 154 crore from Rs 197 crore
• Revenue increased by 54% to Rs 900 crore

Stock Performance

Ather Energy's shares closed 4.7% lower at Rs 629 on the BSE. However, it's worth noting that the stock has gained 108% since its debut on the stock market in May.

Upcoming Investor Meetings

According to the latest LODR data, Ather Energy's management team is scheduled to meet with various institutional investors and analysts in Mumbai from November 17 to 19. These meetings will be based on publicly available information, and no unpublished price-sensitive information will be shared.

This stake sale by NIIF and Ather Energy's recent market performance highlight the dynamic nature of the electric vehicle sector in India. As the industry continues to evolve, investors and market watchers will be keenly observing Ather Energy's growth trajectory and strategic moves in the competitive landscape.