Electric two-wheeler maker Ather Energy reported a 50.2% year-on-year (YoY) rise in operating revenue to Rs 953.6 crore in the third quarter of the current fiscal (Q3FY26), its highest-ever quarterly operating revenue, aided by strong festive demand and higher vehicle sales volumes.
Losses narrowed during the period. The Bengaluru-based company posted a net loss of Rs 84.6 crore for the quarter, down 57.2% from a year earlier.
The company sold 67,851 scooters during the quarter, marking a 50% jump on-year, which led to its total income rising to Rs 995.7 crore during the quarter, a 53% increase from a year earlier.
Ather’s non-vehicle revenue, which includes software subscriptions, charging, accessories, spares, and services, accounted for 14% of total revenue during the quarter, indicating a gradual diversification away from pure vehicle sales.
“Q3 was a particularly strong quarter for us. Units sold were around 68,000, which was up 50% year-on-year. The primary driver for us in the last couple of quarters has been operating leverage, which has really been driven on the back of expanding demand, particularly expanding demand for Rizta scooters,” chief executive officer (CEO) Tarun Mehta said during a call with analysts.
Hong Kong subsidiary
On Monday, Ather announced that its board has approved the incorporation of a wholly owned subsidiary in Hong Kong to strengthen its procurement operations and improve supply chain resilience in the Asia-Pacific region. The proposed subsidiary will support Ather’s critical procurement functions and help it manage sourcing and vendor relationships across the APAC market.
Ather’s share in the electric two-wheeler segment expanded to 18.8% during the quarter, according to Vahan data cited by the company. During the festive period, it recorded its highest-ever monthly registrations of about 30,900 units, translating into a 20% monthly market share.
Rising scale, however, pushed up costs. Total expenses increased to Rs 1,075.3 crore from Rs 847.9 crore a year earlier, with material costs rising to Rs 757.3 crore from Rs 493.5 crore.
The company’s operating performance also improved. The earnings before interest, taxes, depreciation and amortisation (Ebitda) margin improved by about 1,600 basis points year-on-year to -3%.
Addressing recent volatility in commodity prices, Mehta said some pressures stem from structural demand-supply gaps while others are driven by short-term speculative factors. He added that Ather is preparing for potential cost pressure, estimating the impact at a few percentage points over the rest of the year, with cost stress more pronounced on the vehicle side than on battery inputs. The company plans to absorb the impact through scale benefits and engineering-led cost optimisation rather than linking pricing directly to commodity movements.
Competition in India’s electric two-wheeler market has intensified over the past year, with legacy manufacturers such as TVS Motor and Bajaj Auto, as well as startups including Ather Energy and Ola Electric, launching new models and competing across price points.
During the quarter, Ather added 76 new experience centres, taking its total network to 600 across the country. The company aims to expand this to 700 centres by the end of the fiscal year.
Esop allotment
Separately, Ather has also granted 64,882 employee stock options under its Ather Energy Esop 2025 scheme and allotted 494,266 equity shares to employees who exercised their stock options under the plan.
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The company sold 67,851 scooters during the quarter, marking a 50% jump on-year, which led to its total income rising to Rs 995.7 crore during the quarter, a 53% increase from a year earlier.
Ather’s non-vehicle revenue, which includes software subscriptions, charging, accessories, spares, and services, accounted for 14% of total revenue during the quarter, indicating a gradual diversification away from pure vehicle sales.
“Q3 was a particularly strong quarter for us. Units sold were around 68,000, which was up 50% year-on-year. The primary driver for us in the last couple of quarters has been operating leverage, which has really been driven on the back of expanding demand, particularly expanding demand for Rizta scooters,” chief executive officer (CEO) Tarun Mehta said during a call with analysts.
Hong Kong subsidiary
On Monday, Ather announced that its board has approved the incorporation of a wholly owned subsidiary in Hong Kong to strengthen its procurement operations and improve supply chain resilience in the Asia-Pacific region. The proposed subsidiary will support Ather’s critical procurement functions and help it manage sourcing and vendor relationships across the APAC market.
Ather’s share in the electric two-wheeler segment expanded to 18.8% during the quarter, according to Vahan data cited by the company. During the festive period, it recorded its highest-ever monthly registrations of about 30,900 units, translating into a 20% monthly market share.
Rising scale, however, pushed up costs. Total expenses increased to Rs 1,075.3 crore from Rs 847.9 crore a year earlier, with material costs rising to Rs 757.3 crore from Rs 493.5 crore.
The company’s operating performance also improved. The earnings before interest, taxes, depreciation and amortisation (Ebitda) margin improved by about 1,600 basis points year-on-year to -3%.
Addressing recent volatility in commodity prices, Mehta said some pressures stem from structural demand-supply gaps while others are driven by short-term speculative factors. He added that Ather is preparing for potential cost pressure, estimating the impact at a few percentage points over the rest of the year, with cost stress more pronounced on the vehicle side than on battery inputs. The company plans to absorb the impact through scale benefits and engineering-led cost optimisation rather than linking pricing directly to commodity movements.
Competition in India’s electric two-wheeler market has intensified over the past year, with legacy manufacturers such as TVS Motor and Bajaj Auto, as well as startups including Ather Energy and Ola Electric, launching new models and competing across price points.
During the quarter, Ather added 76 new experience centres, taking its total network to 600 across the country. The company aims to expand this to 700 centres by the end of the fiscal year.
Esop allotment
Separately, Ather has also granted 64,882 employee stock options under its Ather Energy Esop 2025 scheme and allotted 494,266 equity shares to employees who exercised their stock options under the plan.