Ather Energy Strengthens Profitability in Q2 FY26 as Market Share Rises to 17.4%

States including Gujarat, Maharashtra, Madhya Pradesh, Odisha, Chhattisgarh, emerged as the fastest-growing region for Ather with a 14.6% share, up from 8.8% last year.

Ather Energy has reported its strongest-ever quarterly performance in Q2 FY26, driven by robust sales growth, expanding market presence, and steady progress toward profitability. The company posted its highest-ever quarterly revenue of ₹940.7 crore, marking a 57% year-on-year (YoY) and 40% quarter-on-quarter (QoQ) increase, while significantly narrowing its EBITDA losses and strengthening its market share across India.

Strong Q2 FY26 Financial Performance

During the quarter ended September 2025, Ather Energy’s financial performance reflected strong operational discipline and volume growth. The company’s total income rose 57% YoY to ₹940.7 crore, supported by sustained demand and stable pricing. Ather’s Adjusted Gross Margin surged 84% YoY to ₹210.6 crore, translating to a 22% margin, an improvement of around 300 basis points from the previous year. 

This was largely attributed to value engineering, a richer product mix, and increasing contributions from non-vehicle revenues such as software subscriptions and charging services. The company’s EBITDA margin improved by approximately 1,100 basis points YoY and 600 bps QoQ, reaching (-10%), with EBITDA losses narrowing to ₹90.7 crore. Meanwhile, the loss after tax stood at ₹154.1 crore, reflecting the company’s sustained focus on cost management and operating leverage as it scales its operations.

Market Share Expands to 17.4% 

Ather Energy’s growth trajectory continued on a strong note as it achieved a 17.4% national market share in Q2 FY26, up from 12.1% in the same quarter last year and 14.3% in Q1 FY26. The company sold 65,595 units during the quarter, representing a 67% increase YoY from 39,305 units and a 42% rise QoQ from 46,078 units.

The Bengaluru-based electric two-wheeler manufacturer maintained its leadership in South India, where market share climbed to 25%, underscoring Ather’s strong brand loyalty and dealer network. Meanwhile, Middle India—comprising Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh, and Odisha—emerged as the fastest-growing region with a 14.6% share, up sharply from 8.8% last year. 

The Rest of India also saw healthy gains, improving to 10% market share from 6.1%, driven by increasing traction in regions like Jammu & Kashmir, Punjab, and Rajasthan.

Expanding Retail and Charging Network

Ather continued its nationwide expansion during Q2, adding 78 new experience centres (ECs) to take its total count to 524 ECs across India. In the first half of FY26 alone, the company added 173 new ECs, a testament to its aggressive yet balanced retail strategy targeting both metropolitan hubs and tier-2 and tier-3 cities.

The company’s modular retail format is helping optimize costs and accelerate breakeven timelines for new outlets. This approach has strengthened Ather’s accessibility, allowing more customers to experience its growing portfolio firsthand.

On the ecosystem front, Ather further bolstered its fast-charging network — Ather Grid — which expanded to 4,322 points across India, Nepal, and Sri Lanka, up from 4,032 in the previous quarter. This network remains the widest two-wheeler fast-charging infrastructure in India, supporting seamless long-distance travel for EV users.

Technological Advancements and Software Growth

Ather’s technological edge continues to be a key differentiator in India’s EV space. During the quarter, the company rolled out AtherStack 7.0, the latest update to its proprietary software platform, which introduced new features to enhance connectivity and riding experience.

The company reported that 89% of its customers opted for AtherStack Pro, reaffirming its leadership in the software-defined EV segment. Ather’s growing ecosystem revenues—now 12% of total income—highlight the increasing monetization of digital and service-led offerings beyond scooter sales.

Company Outlook

Commenting on the performance, Tarun Mehta, Co-founder 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. Our strategic focus on Middle India has delivered results, and we continue to see strong demand across the South and the Rest of India. The response to Rizta and our expanding retail network have been key drivers of this momentum.”

With improving margins, growing retail presence, and rising software adoption, Ather Energy appears well-positioned to sustain its growth momentum in the coming quarters. The company’s balanced expansion across geographies and strong product lineup—including the Ather 450 performance series and the Rizta family scooter line—reinforce its leadership in India’s competitive electric two-wheeler market.

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