HT Bureau
GUWAHATI, Nov 16: Ather Energy (ATHERENERG), India’s leading electric two-wheeler manufacturer, has reported a strong Q2 FY26 performance with sharp growth in market share, sales volume and financial metrics.
The quarter’s momentum was driven by an expanding geographical footprint, a diversified product portfolio and a strong technology foundation.
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The company ended the quarter with a 17.4% market share, sales of 65,595 units and an EBITDA margin improvement of around 1,100 bps year-on-year to (10%), reflecting solid operational execution.
For the quarter ended September 2025, Ather Energy reported total income of ₹940.7 crore, up 57% year-on-year and 40% quarter-on-quarter.
Non-vehicle revenue—primarily from ecosystem offerings such as software subscriptions, charging, accessories, spares and service—contributed 12% of total income, highlighting the growing strength of its ecosystem-led business model.
Margins improved steadily through operational efficiencies and disciplined financial management.
Adjusted Gross Margin rose to ₹210.6 crore in Q2 FY26, up 84% year-on-year, supported by value engineering, a richer product mix and increased non-vehicle revenue contributions.
Adjusted Gross Margin improved to 22%, up nearly 300 bps year-on-year. EBITDA losses narrowed to ₹90.7 crore, with margin improvement of over 1,100 bps year-on-year and 600 bps quarter-on-quarter.
Loss after tax stood at ₹154.1 crore, indicating steady progress toward profitability.
The company strengthened its position in the electric two-wheeler market with a 17.4% share in Q2 FY26, up from 12.1% in Q2 FY25 and 14.3% in Q1 FY26.
It delivered 65,595 units during the quarter, registering a 67% year-on-year increase and a 42% quarter-on-quarter rise.
Ather continued its leadership in South India with a 25% market share, while Middle India emerged as the fastest-growing region, increasing to 14.6% from 8.8% year-on-year.
The Rest of India saw growth to 10%, driven by strong performance in Jammu & Kashmir, Punjab and Rajasthan.
Operational expansion remained strong, with the company adding 78 new Experience Centres (ECs) during the quarter and 173 in H1, taking its total retail footprint to 524 ECs nationwide.
Ecosystem initiatives also advanced, with the rollout of AtherStack 7.0 introducing new software features that enhance connectivity and the riding experience.
AtherGrid expanded to 4,322 fast-charging points and neighbourhood chargers across India, Nepal and Sri Lanka.
Tarun Mehta, Executive Director and CEO of Ather Energy, said, “Q2 has been a strong quarter with steady growth in market share and continued progress on our path to profitability. We saw continued improvement in EBITDA margin with improving operating leverage. Our strategic focus on Middle India has delivered results, with several states scaling up rapidly. The Rest of India has also grown strongly, making our expansion more broad-based. In the South, we continue to lead the market and are seeing a new growth story driven by a denser retail presence. The response to Rizta and our ongoing retail expansion pan-India have been key contributors to this momentum.”
