Ather Energy Records 54% Revenue Growth in Q2 FY26 Amid Market Share Gains and Profitability Focus
- ByStartupStory | November 18, 2025
Indian electric vehicle (EV) maker Ather Energy reported robust financial performance for the second quarter of fiscal 2025-26 (Q2 FY26), with standalone net sales surging 54% year-over-year to ₹899 crore ($110 million). This represents the company’s highest quarterly revenue to date, driven by strong volume growth, improved margins, and expanding market share across India’s fast-growing electric scooter segment.
During Q2 FY26, Ather delivered 65,595 electric scooters, a 67% increase from 39,305 units in the corresponding quarter last year, and a 42% rise sequentially from Q1 FY26 volumes. The company reported a rise in national market share to 17.4% in the electric two-wheeler category, up from 12.1% a year prior, with sustained dominance in South India (25% share) and significant penetration in Middle India.
Ather’s revenue growth was complemented by margin expansion, attributed to value engineering, a richer product mix, and rising contributions from non-vehicle revenues including software subscriptions, charging services, accessories, and spares, which now constitute 12% of total income. Adjusted gross margin improved 84% year-on-year to ₹211 crore, reaching 22% of sales.
The company also reported continued progress in narrowing losses, with EBITDA losses reduced to ₹90.7 crore in Q2 FY26 from ₹124 crore the previous year, corresponding to an EBITDA margin of -10%, a year-over-year improvement of over 1,100 basis points. Net loss after tax narrowed to ₹154 crore, down from ₹197 crore in Q2 FY25.
Ather continues aggressive retail expansion to support growth, opening 78 new experience centers during Q2, taking its total footprint to 524 stores nationwide. This network expansion drives consumer awareness and adoption beyond top metropolitan cities into tier-2 and tier-3 markets.
CEO and Co-founder Tarun Mehta expressed optimism about the company’s trajectory, highlighting steady volume growth, improving operating leverage, and the success of new product launches such as the Ather Rizta. The company’s strategic focus on regions beyond the South, with strong performance in Gujarat, Maharashtra, and Madhya Pradesh, has added meaningful market share.
Despite rising input costs—raw materials expenses increased 46% year-on-year—Ather has managed cost discipline and operating efficiencies to improve profitability metrics while investing in growth and innovation.
Looking ahead, Ather Energy aims to maintain momentum in volume growth, continue margin expansion, and move decisively toward profitability. The company’s leadership in India’s premium EV scooter segment combined with broadening geographic reach and ecosystem revenues position it well for sustainable long-term success.
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