Indian EV maker Ather Energy revenue up 54% in Q2
- ByStartupStory | November 11, 2025
Indian electric vehicle maker Ather Energy reported robust financial results for the second quarter of fiscal year 2026 (Q2 FY26), delivering a 54% year-on-year increase in revenue to ₹899 crore (approximately $110 million). This significant revenue growth was primarily driven by higher vehicle deliveries and growing festive demand across its markets.
Despite the revenue jump, Ather Energy’s net loss narrowed by about 22% to ₹154 crore compared to ₹197 crore in the same quarter last year, signaling improving operational efficiency. The company’s EBITDA loss also improved, shrinking to ₹133 crore from ₹139 crore a year ago. The adjusted gross margin rose 300 basis points to 22%, supported by strong non-core revenue streams.
Operationally, Ather Energy saw a 67% year-on-year increase in vehicle volumes and a 42% sequential rise quarter-over-quarter. Its market share expanded to 17.4% nationwide, with particularly strong market leadership in South India, where the share stands at 25%. The company is aggressively expanding its retail footprint, scaling up its experience centers to 524 with targets of reaching 700 centers by the end of FY26.
Ather’s cost structure saw an increase in total expenses by 38% to ₹1,095 crore, primarily driven by higher raw material costs related to battery and component procurement, which accounted for over 67% of total expenses. Employee benefit expenses remained stable, contributing ₹114 crore, while other expenses rose moderately.
The company also continues product innovation with new scooter variants and services such as ‘Battery as a Service,’ along with technology enhancements like the EL platform and AtherStack 7.0 software. These innovations, combined with strategic geographic focus, especially in fast-growing regions dubbed “Middle India,” underscore its growth strategy.
Ather Energy has overtaken rival Ola Electric in quarterly revenue, which reported a 43% decline in the same period, highlighting Ather’s expanding market dominance. The firm also surpassed Ola in market capitalization, reflecting growing investor confidence.
While regulatory challenges such as delays in PM E-Drive incentive claims due to China’s rare-earth magnet restrictions remain concerns, brokerages like HSBC have maintained a “Buy” rating on Ather citing improved margins and promising upcoming launches.
In summary, Ather Energy’s Q2 FY26 performance demonstrates strong revenue growth powered by expanding sales and market share, narrowing losses, and ongoing investments in innovation and retail footprint expansion, positioning it well for the evolving Indian EV market landscape. The company’s focus on profitability and strategic market expansion indicates solid momentum as it scales its business aggressively across the country.
Follow Startup Story
Related Posts
