Ather Energy shares jumped 14% to ₹1,575 on Monday after the firm reported a Q2 profit of ₹1.26 crore. The EV maker plans to expand annual production capacity by 2.25 lakh units. CEO Tarun Mehta said, "Demand has more than doubled year-on-year this quarter, and to meet it, we are further augmenting."
Shares of Ather Energy jumped nearly 14 per cent to ₹1,575 apiece on Monday after the electric two-wheeler maker reported a consolidated net profit for the September quarter, against a loss a year earlier, and announced plans to expand annual production capacity by 2.25 lakh units to meet rising demand.
The company reported a consolidated profit after tax (PAT) of ₹1.26 crore in Q2, compared with a loss of ₹154 crore in the year-ago period. Consolidated total income rose 62 per cent y-o-y to ₹1,527 crore, while volumes grew 42 per cent to 93,211 units.
Ather reported an EBITDA of ₹74.2 crore, marking its second consecutive EBITDA-positive quarter. Its EBITDA margin improved to 4.9 per cent from -9.6 per cent in Q2 FY26, supported by higher volumes, improved product mix and cost discipline. Adjusted gross margin rose 160 basis points y-o-y to 24 per cent, despite elevated commodity costs.
Capacity expansion
The company plans to invest around ₹122 crore to expand capacity across its Hosur facility in Tamil Nadu and its upcoming AURIC plant in Chhatrapati Sambhajinagar, Maharashtra. At Hosur, annual capacity will increase by 75,000 units to 4.95 lakh units by December.
The AURIC facility, which has an initial annual capacity of 5 lakh units, will see a further expansion of 1.5 lakh, expected to come on stream by Q2 FY28.
The expansion will take Ather's combined installed annual capacity to around 11.4 lakh units by Q2 FY28.
Demand continued to outpace supply during the quarter, with customer enquiries rising 109 per cent y-o-y to about 10 lakh and pre-orders more than doubling to 1.8 lakh units. The Hosur facility operated at 98 per cent capacity utilisation during peak production.
"Demand has more than doubled year-on-year this quarter, and to meet it, we are further augmenting our production capacity at Hosur and AURIC," said Tarun Mehta, Co-Founder and CEO of Ather Energy.
Revenue mix
Non-vehicle revenue, including software subscriptions, charging, accessories and services, accounted for 15 per cent of revenue from operations, up from 12 per cent a year earlier. The company also launched Konarc, its first scooter on the new EL platform, expanding its portfolio beyond the performance-focused 450 series and family-oriented Rizta.
India's electric two-wheeler registrations rose 82 per cent y-o-y to a record 5.98 lakh units in Q2, with penetration reaching 11.2 per cent, according to Vahan data.