Ather Energy Q2 FY27 Profit Lifts Shares 18.79%

Shares rise after quarterly turnaround

Ather Energy Ltd shares surged 18.79% in Monday's trade, reaching a high of ₹1,643.85 after the electric two-wheeler maker reported a profit for the September quarter of FY27. The move followed a sharp improvement in quarterly financial performance and an update on planned manufacturing expansion. The company reported a consolidated net profit of ₹1.26 crore for Q2 FY27, compared with a consolidated net loss of ₹154.07 crore in Q2 FY26. It had posted a net loss of ₹51.09 crore in the preceding June quarter of FY27. The result marked a move into positive net profit territory after earlier quarterly losses.

Revenue grows 62.9% year on year

Revenue from operations rose 62.9% year on year to ₹1,464.24 crore in Q2 FY27 from ₹898.90 crore a year earlier. Sequentially, operating revenue increased 20.3% from ₹1,216.90 crore in Q1 FY27. The revenue figure was also above the street estimate of ₹1,390 crore cited in the available results update. Including other income of ₹62.70 crore, total income stood at ₹1,527 crore, compared with ₹940.70 crore in the corresponding quarter of the previous year. The stronger revenue base was central to the improvement in the company's quarterly earnings.

Operating performance turns positive

Ather reported earnings before interest, tax, depreciation and amortisation, or EBITDA, of ₹11.42 crore in Q2 FY27. This compares with an EBITDA loss of ₹132 crore in Q2 FY26. EBITDA margin was reported at 0.80%, while another results update placed the margin at 0.75% based on rounded figures. The company described the quarter as its first with positive EBITDA and net profit. The result indicates that revenue growth was faster than the rise in expenses during the period.

Expenses remain higher than operating revenue

Total expenses increased 39.4% year on year to ₹1,526 crore in Q2 FY27 from ₹1,094.70 crore in Q2 FY26. Although expenses grew substantially, their rate of growth was below the increase in operating revenue. Operating revenue was still ₹61.5 crore below total expenses in the quarter. Other income therefore contributed to the reported net profit. This distinction is relevant because the company reached profitability while its core operating revenue remained below overall expenditure.

Standalone and consolidated profit figures

The company separately reported standalone net profit of ₹1.50 crore for Q2 FY27. Its consolidated net profit stood at ₹1.26 crore. Both figures indicate a substantial improvement from the losses reported in the prior-year period. Investors should distinguish between the standalone and consolidated measures when comparing reported numbers. The share-market reaction followed the consolidated result as well as the company’s operational and capacity announcements.

Demand indicators strengthen during the quarter

Ather said customer enquiries rose 109% year on year to about 10 lakh in Q2 FY27. Pre-orders more than doubled to 1.80 lakh during the quarter. The company said demand exceeded available production capacity. Its Hosur plant operated at 98% capacity utilisation during peak production in Q2 FY27. These indicators formed the basis for the board-approved capacity expansion plans.

Hosur capacity to increase by December 2026

Ather plans to increase annual production capacity at its Hosur facility in Tamil Nadu by 75,000 units. The expansion will raise Hosur’s annual capacity from 4.20 lakh units to 4.95 lakh units by December 2026. The company said the additional capacity is intended to meet rising demand. High peak-period utilisation at the existing plant highlights the operational constraint that the project is designed to address. The project is part of a broader expansion across two manufacturing locations.

Maharashtra factory expansion is under construction

Ather’s Factory 3.0 at AURIC in Chhatrapati Sambhajinagar, Maharashtra, is under construction. Commercial production at the new facility is expected to begin in phases from December 2026. Phase 1 is planned with annual capacity of 5 lakh units. The company also intends to add 1.5 lakh units of annual capacity, taking the plant’s planned capacity to 6.5 lakh units. Production from the additional capacity is expected to commence by Q2 FY28.

Capacity and investment plan

The combined Hosur and AURIC expansions will add 2.25 lakh units of annual capacity. Ather expects its installed annual capacity across the two sites to reach about 11.4 lakh units by Q2 FY28. The company plans to invest approximately ₹122 crore across the facilities to support these enhancements. The expansion is to be funded through equity financing and debt or internal accruals, according to the results update. The company also noted that obligations related to battery waste remain difficult to estimate.

What the quarterly result means

The September-quarter performance combines stronger sales growth, positive EBITDA and a small consolidated net profit. Revenue expansion outpaced expense growth, improving the company’s earnings profile from the year-ago quarter. At the same time, the gap between operating revenue and total expenses shows the role of other income in the reported profit. The production additions are aimed at addressing demand that the company says has exceeded its available capacity. Execution of the Hosur upgrade and the phased start of the Maharashtra plant will be important operational milestones through December 2026 and Q2 FY28.

Outlook based on announced plans

Ather’s next reported performance will show whether the growth in enquiries and pre-orders translates into continued revenue growth. The company has set December 2026 as the target for the Hosur expansion and the initial phased commercial production at AURIC. The additional 1.5 lakh-unit capacity at the Maharashtra facility is expected to start production by Q2 FY28. For now, the Q2 FY27 result marks a shift from losses in the comparable and preceding quarters to a modest consolidated profit alongside a defined capacity investment programme.