Ather Energy Swings to Profit After ₹154 Crore Loss, But Margins Remain Razor-Thin

Ather Energy has reported its first quarterly profit since listing, marking a significant turnaround for the electric-scooter maker. However, with earnings of just ₹1.26 crore on revenue exceeding ₹1,400 crore, the milestone also highlights how difficult it remains for the company to convert rapid business growth into meaningful profits.

For the quarter ended September 30, 2026, Ather posted a consolidated net profit of ₹1.26 crore, compared with a loss of ₹154 crore in the corresponding period last year. Revenue surged 62.8% year-on-year to ₹1,464 crore, while earnings before interest, taxes, depreciation and amortisation (EBITDA) turned positive at approximately ₹11 crore, against a substantial loss a year earlier.

The improvement reflects stronger revenue growth and better operating performance. Yet Ather's net profit margin stood at just 0.09%, meaning the company retained roughly nine paise in net profit for every ₹100 of revenue. Other income also contributed to the final result, indicating that the return to profitability should not be viewed solely as evidence of strong earnings from its core operations.

The company operates in India's increasingly competitive electric two-wheeler market, where manufacturers are expanding production, improving technology and competing for customers. Ather sells scooters such as the Rizta and 450 series and also operates its Ather Grid charging network. Its business therefore depends not only on increasing scooter sales but also on managing manufacturing, battery, distribution, service and infrastructure costs.

Ather's board has approved ₹122 crore in expansion investments for its manufacturing facilities in Tamil Nadu and Maharashtra, aimed at increasing annual production capacity by 2.25 lakh units. The expansion signals confidence in future demand, although additional capacity will need to translate into higher sales and better margins to strengthen profitability.

The comparison with established electric-scooter rivals also requires caution. Bajaj Auto and TVS Motor benefit from broader automotive businesses, while their electric-scooter divisions operate within those larger companies. Their overall profits cannot be directly compared with Ather's company-wide earnings.