Ather Energy Posts Its First Quarterly Profit as Scooter Sales Jump 42% and Revenue Climbs 63%

Ather Energy, the Bengaluru-based electric scooter maker, has reported its first quarterly net profit since it was founded more than a decade ago, marking a milestone for India's electric two-wheeler industry and for a company that investors once questioned could ever make money.

The company posted a consolidated net profit of ₹1.26 crore for the quarter ended 30 September, the second quarter of the 2027 financial year, compared with a net loss of ₹154 crore in the same period last year, according to results released on 26 October. In the previous quarter, Ather had reported a loss of about ₹51 crore.

Revenue from operations rose 63 per cent year on year to ₹1,464.24 crore, while total income, including other income, increased 62 per cent to ₹1,526.95 crore. The company sold 93,211 electric two-wheelers during the quarter, up 42 per cent from a year earlier, and remained positive at the EBITDA level.

A Thin but Symbolic Profit

The profit is modest. Other income of about ₹62.7 crore, largely returns on cash raised in the company's stock market listing, played a significant role in pushing the bottom line into positive territory. Without it, Ather would still have been loss-making at the net level.

But the trajectory matters more than the absolute number. A year ago, the company was losing more than ₹150 crore a quarter. It turned EBITDA positive for the first time in the June quarter and has now built on that progress to deliver a net profit, demonstrating that its losses have narrowed rapidly as volumes have grown.

For a capital-intensive manufacturing business that has spent years investing in research, product development, factories and charging infrastructure, the shift is significant. It suggests that Ather has reached the scale at which its fixed costs are being absorbed by a much larger revenue base.

Scale Drives the Turnaround

The 42 per cent rise in volumes reflects both growth in India's electric two-wheeler market and Ather's gains in market share. The company has expanded its product range beyond its premium 450 series with the Rizta, a family-oriented scooter that has broadened its appeal to a much wider set of customers.

Ather has also expanded its retail footprint beyond its traditional strongholds in southern India, opening experience centres across northern, western and eastern states. That expansion has helped it compete more effectively in large markets where it previously had a limited presence.

Higher volumes improve the economics of every part of the business. Purchasing costs for batteries, motors and electronics fall as order sizes increase, factory utilisation improves, and spending on research and marketing is spread across more vehicles.

A Changed Competitive Landscape

Ather's results arrive at a time of upheaval in India's electric two-wheeler market. Ola Electric, which once dominated the segment, has lost significant market share amid service complaints, regulatory scrutiny and financial pressure. Ather overtook Ola in quarterly revenue last year and has continued to strengthen its position.

Legacy manufacturers have become formidable competitors. TVS Motor, with its iQube, and Bajaj Auto, with its Chetak, have used their manufacturing expertise, dealer networks and brand recognition to capture large shares of the electric market. Hero MotoCorp, which is also one of Ather's largest shareholders, sells electric scooters under its Vida brand.

In this environment, Ather's differentiation rests on technology and product quality. The company designs much of its hardware and software in-house, including battery packs, vehicle control units and its connected-scooter software platform, and it has built its own fast-charging network, Ather Grid.

From Startup to Listed Company

Ather was founded in 2013 by IIT Madras graduates Tarun Mehta and Swapnil Jain, at a time when electric two-wheelers were a niche product in India. The company spent years developing its first scooter, the Ather 450, which launched in 2018, and built a reputation for performance and connected features.

The company listed on Indian stock exchanges in May 2025, raising capital to fund a new manufacturing facility in Maharashtra and continued investment in research and development. Its turn to profitability within roughly 18 months of listing will be welcomed by investors who backed the offering.

Policy Tailwinds and Headwinds

India's electric two-wheeler market has been shaped heavily by government policy. Subsidies under the FAME scheme and its successors helped bring down purchase prices and spur early adoption, while production-linked incentive schemes have encouraged domestic manufacturing of vehicles and components.

Subsidies have been reduced over time, forcing manufacturers to cut costs and compete more on product value. Companies that can deliver attractive vehicles without relying on generous subsidies are likely to be the long-term winners, and Ather's improving profitability suggests it is adapting to that reality.

Supply chains remain a concern. India relies heavily on imports for battery cells and rare earth magnets used in electric motors, and disruptions in the supply of these materials have affected manufacturers in recent years. Efforts to build domestic cell manufacturing capacity could reduce that vulnerability over time.

The Climate and Air Quality Case

Electric two-wheelers matter enormously for India's climate goals and urban air quality. Two-wheelers account for the large majority of vehicles sold in the country, and they are a significant source of emissions and pollution in congested cities. Shifting this segment to electric power is one of the most practical ways India can reduce oil imports and cut transport emissions.

Penetration of electric vehicles in the two-wheeler market remains in single digits, leaving considerable room for growth. Falling battery costs, wider charging networks and improving products are expected to accelerate adoption over the coming years.

What Investors Will Watch

Investors will now look for evidence that Ather can sustain and expand its profitability. Key factors include the company's ability to keep growing volumes, manage costs as it adds new manufacturing capacity, and maintain pricing in an increasingly competitive market.

The company's new factory, its expansion into new regions and potential entry into new vehicle categories will all require significant investment. Balancing those ambitions with consistent profits will be the next test for management.

The Bigger Picture

Ather's first profit is a milestone not only for the company but for India's electric vehicle ecosystem. It provides evidence that an Indian startup can build a technology-led manufacturing business, compete with established automotive giants and reach profitability without abandoning growth.

For investors in Indian deep-tech and manufacturing startups, it offers a reminder that such businesses take time and patient capital to mature. For the country's clean mobility ambitions, it is a sign that the electric two-wheeler industry is moving from subsidy-driven experimentation to commercial sustainability.