Ather Energy Achieves Profitability
Electric two-wheeler manufacturer Ather Energy announced a significant turnaround in its financial performance for the second quarter of fiscal year 2027 (Q2 FY27), reporting a consolidated net profit of Rs 1.26 crore. This marks a substantial improvement from the net loss of Rs 154.07 crore recorded in Q2 FY26 and a loss of Rs 51.09 crore in the preceding Q1 FY27.
Following the positive earnings report, Ather Energy's shares experienced a robust surge, climbing 15 percent in Monday's trading. The company also saw its revenue jump by 62.90 percent year-on-year, reaching Rs 1,464.24 crore in Q2 FY27, up from Rs 898.88 crore in the same period last year.
Strong Operational Performance and Expansion Plans
Beyond net profit, Ather Energy's operational metrics also showed strength. The company posted earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 11.3 crore, a stark contrast to the EBITDA loss of Rs 133 crore in Q2 FY26.
In a strategic move to capitalize on growing demand for electric vehicles, Ather Energy's board has approved substantial capital expenditure plans. The company intends to invest approximately Rs 122 crore, including taxes, to enhance its manufacturing capacity.
Boosting Production Capacity
The expansion initiatives target Ather Energy's existing factories in Hosur, Tamil Nadu, and the upcoming "Factory 3.0" in Chhatrapati Sambhajinagar, Maharashtra. A significant portion of this investment, Rs 53 crore, is allocated for a new battery production line, aimed at meeting future demand scenarios and mitigating supply-chain risks. This battery line is projected to be operational by Q3 FY28.
Upon completion of the proposed expansion, the annual production capacity for electric two-wheelers at the Hosur facility will increase from 4.2 lakh units to 4.95 lakh units. Similarly, the planned annual production capacity for "Factory 3.0" is set to rise from 5 lakh units to 6.5 lakh units, significantly bolstering Ather Energy's market presence and production capabilities.