Ather Energy reported a sharp turnaround in Q1 FY27, posting an EBITDA profit of ₹9 crore compared to a ₹106 crore loss a year earlier, according to inc42.com. The electric vehicle maker narrowed its net loss by 71% year-on-year to ₹51.1 crore while operating revenue surged 89% to ₹1,216.9 crore. This financial improvement coincides with Ather’s recent ₹2,500 crore rights issue and fundraise aimed at scaling its expansion plans.
The EBITDA turnaround was driven primarily by strong volume growth, with Ather delivering 83,173 electric scooters in Q1, an 81% increase year-on-year. Rising high-margin non-vehicle revenue streams such as software subscriptions, charging, accessories, and after-sales services contributed 14% of operating revenue. Despite a 54% increase in total expenses to ₹1,310.7 crore, the company expanded its adjusted gross margin by 82% to ₹282 crore through price hikes, supplier negotiations, and an improved product mix, enabling it to absorb inflationary pressures and fixed overheads.
Ather’s performance stands out in the Indian electric two-wheeler market, which has faced concerns over slowing sales growth. The company’s ability to grow volumes and improve margins contrasts with broader industry challenges. Its focus on non-vehicle revenue and margin discipline aligns with trends seen in other EV makers aiming for sustainable profitability. The upcoming manufacturing expansion, including a new unit in Maharashtra, positions Ather to meet rising demand and enhance its production capacity significantly.
The new manufacturing facility in Maharashtra is scheduled to begin production in Q3 FY27 and will add an annual capacity of 500,000 units, supporting Ather’s growth trajectory and efforts to achieve real profitability.