Ather Energy has become the first listed new-age electric two-wheeler maker in India to report a positive earnings before interest, taxes, depreciation and amortisation (Ebitda) margin, marking a key milestone for a sector that has long prioritised growth over profits. According to latest reports, the Bengaluru-based company reported a consolidated Ebitda of ₹9 crore in Q1 FY27, compared with a loss of ₹106 crore in the corresponding quarter last year. The Ebitda margin improved by 1,650 basis points year-on-year to 0.8%, highlighting stronger operating efficiency and better cost management. Total income rose 87.2% year-on-year to ₹1,260 crore, while net loss narrowed to ₹51 crore from ₹178 crore. The company delivered 83,173 electric scooters during April-June FY27, registering an 80.5% year-on-year growth as demand continued to exceed available production capacity.
The milestone comes as electric vehicle adoption gathers pace across the country, with India's EV registrations jumping 68% year-on-year to nearly 5.25 lakh units in the latest quarter, according to Vahan data. As reported by Business Standard, electric two-wheelers remained the largest part of the market, accounting for 61.37% of all EV registrations during the month. In FY26, Ather had already reduced its annual Ebitda margin to negative 6.7% from negative 23% in FY25 as revenue climbed to ₹3,823 crore and vehicle sales increased 69% to nearly 263,000 units. The company also reported a consolidated adjusted gross margin of ₹282 crore, up 82.3% from the previous year, demonstrating effective cost management despite higher raw material prices.
According to company filings, Ather's management attributed the improvement to strong demand, calibrated price increases, better product mix, supplier negotiations and value engineering initiatives that helped offset rising raw material costs. During the earnings call, Tarun Mehta, co-founder and chief executive of Ather Energy, said: "The company continued to experience strong demand across its portfolio, supported by favourable market conditions and increasing customer acceptance of electric mobility." Customer enquiries increased 95% to 7.07 lakh, while quarterly pre-orders surged 158% year-on-year to 1.5 lakh units, underlining the growing popularity of the company's product range. The company's non-vehicle revenue, including software subscriptions, charging, accessories, spares and services, rose to 14% of operating revenue from 13% a year earlier, with its AtherStack Pro subscription maintaining a 94% attachment rate.
The company is preparing for its next phase of growth with the unveiling of the first production scooter based on its all-new EL platform during Ather Community Day 2026 on August 29. Developed as the company's next-generation vehicle architecture, the EL platform has been designed to support a wider range of products while improving manufacturing efficiency and scalability. To meet rising demand, Ather is expanding its manufacturing capacity through its new Factory 3.0 at AURIC in Chhatrapati Sambhaji Nagar. The first phase of the facility, with an annual production capacity of 5 lakh electric two-wheelers, is expected to begin operations during the third quarter of FY27. Once both phases are completed, Ather's total installed manufacturing capacity will reach 1.42 million electric two-wheelers annually. Founded in 2013, Ather Energy continues to focus on innovation, offering a portfolio that includes the performance-oriented 450 series and the Rizta family scooter line.
According to Business Standard, the harder test now is whether Ather can sustain that performance and move from positive Ebitda to net profit, and whether other pure-play EV makers can follow without sacrificing growth. For incumbents such as TVS, Bajaj and Hero, the challenge is to turn rapidly growing EV businesses into meaningful contributors to profits. The next phase will increasingly be judged by who can turn that scale into profits after years when India's EV race was largely about volumes and market share. With electric vehicle penetration crossing the 10% mark for the first time in June 2026, the industry is entering a new phase where profitability becomes as important as growth.
