Ather Energy Reports Surge in Profit and Plans for Expansion
Ather Energy has seen a significant boost, with shares rising approximately 14% to Rs 1,575 per share on Monday. This increase follows the announcement of a consolidated net profit for Q2 FY27, contrasting with a loss during the same period last year. The company is also preparing to enhance its annual production capacity by 2.25 lakh units at its Hosur and AURIC facilities to cater to the rising demand.
Financial Performance Highlights
Ather Energy achieved a consolidated profit after tax of Rs 1.26 crore for the quarter ending September 2026, a remarkable shift from a loss of Rs 154 crore in Q2 FY26. The total consolidated income surged by 62% year-on-year, reaching Rs 1,527 crore, while vehicle volumes increased by 42% to 93,211 units, as detailed in the company’s press release.
EBITDA Performance
The company recorded an EBITDA of Rs 74.2 crore in this quarter, marking its second consecutive period of profitability in EBITDA. The EBITDA margin improved notably, climbing to 4.9% from a negative 9.6% one year earlier, driven by higher sales volume, a favourable product mix, and strategic pricing decisions.
Customer Demand and Production Capacity
Ather Energy has reported a 109% increase in customer enquiries year-on-year, totalling around 10 lakh in Q2 FY27. Additionally, pre-orders more than doubled to 1.8 lakh units. During peak production, the Hosur facility achieved an impressive 98% capacity utilisation.
Plans for Expansion
To meet growing market demand, Ather Energy plans to elevate its annual production capacity at the Hosur plant from 4.2 lakh units to 4.95 lakh units by December 2026. Furthermore, the new AURIC facility in Chhatrapati Sambhajinagar is expected to commence phased commercial production from December 2026, initiating with a capacity of 5 lakh units and further expanding to 6.5 lakh units by Q2 FY28.
Investment for Capacity Increase
The capacity enhancement will necessitate an investment of around Rs 122 crore, setting Ather’s total installed annual production capacity at approximately 11.4 lakh units by Q2 FY28.
New Product Launch
During the quarter, Ather unveiled the Konarc, its inaugural scooter built on the new EL platform. This scooter, launched at the Community Day event in August, emphasises comfort and convenience for daily use. It features a sturdy metal body, an adjustable backrest, keyless access, and a new Bedrock battery supported by a 10-year warranty.
Market Outlook
Brokerages remain optimistic about Ather Energy’s future. In August, CLSA maintained its ‘Outperform’ rating for the company with a target price set at Rs 1,600, citing robust volume growth, strong order bookings, anticipated production capacity expansions, and the upcoming launch of its EL platform.