Ather Q2: Loss Narrows 22% YoY To INR 154 Cr

EV maker Ather Energy narrowed its Q2 FY26 net loss by 22% to INR 154.1 Cr from INR 197.2 Cr in the same quarter previous year. On a sequential basis, the company managed to trim its net loss by 14% from INR 178.2 Cr loss incurred in the June quarter.

The company’s operating revenue jumped 54% YoY and 40% QoQ to INR 898.8 Cr. Including an other income of INR 41.8 Cr, the company’s total income for the quarter under review stood at INR 940.7 Cr. This marked a 57% YoY jump from INR 598.9 Cr in the year ago period.

Meanwhile, Ather’s expenses for the quarter zoomed 38% YoY and 28% QoQ to INR 1,094.8 Cr. Cost of materials accounted for the largest portion, at INR 736.4 Cr, surging 46% YoY due to an increase in the number of scooters sold during the quarter. Employee expenses, however, decreased slightly to INR 114 Cr from INR 118 Cr in the same quarter previous year.

Notably, its EBITDA margin for the quarter stood at 10%, up 1,100 bps YoY from 21% in Q2 FY25 and 600 bps sequentially. Meanwhile, adjusted gross margin stood at 22% in Q2 FY26, amounting to INR 2,106 Cr.

Ather attributed the expansion in gross margin to “sustained reduction of COGS (cost of goods sold)”. From INR 1.21 Lakh in FY25, the average selling price of Ather’s E2Ws has since come down to INR 1.11 Lakh during the first half of FY26, the company claimed.

In the quarter under review, the EV maker sold 66K scooters, about 67% increase from the same period last year. In September this year, the company surpassed Ola Electric for the first time by nearly 5,000 units, and increased the gap in October by 11,232 units. Ather saw a 46% jump in its E2W registrations in October, reporting 26,713 registrations compared to 18,295 in September.

The volume expansion is supported by the increase in distribution channels. Ather ended Q2 FY26 with 524 experience centres across the country, more than double the count from a year earlier. In the September quarter, it added 78 stores and plans to end the fiscal with 700 stores.

Despite the overall uptick, the EV maker faced regulatory and supply chain headwinds during the quarter after China imposed export restrictions on select categories of heavy rare earth magnets. The resulting shortage forced its motor suppliers to make temporary adjustments that deviated from the Phased Manufacturing Programme (PMP) norms for traction motors, particularly in the domestic sourcing and fitment of magnets.

While the workaround kept production moving, it created compliance gaps that could affect Ather’s eligibility to claim demand incentives under the PM E-DRIVE scheme for the affected vehicles.

As a result, the company had deferred submitting its claims for the incentives for now and held back INR 19.2 Cr in incentive-linked revenue.

Rising Central India Marketshare

The company has also been building up its presence in Central India. In the region, Ather reached 14.6% market share in Q2 FY26, almost double the levels from late FY25. Gujarat stood out with a 23.8% share, up from 19.4% in Q1. Maharashtra and Madhya Pradesh also delivered steady quarter-on-quarter increases.

In the rest of the country, which includes the north and east, Ather crossed 10% market share, compared to 6.1% in Q2 FY25. Punjab, Rajasthan, and Jammu & Kashmir showed the strongest gains, with Ather’s share in J&K rising more than threefold over the past year to 42.4%.

Meanwhile, Southern India remains its stronghold. The company held a 25% market share in the south in Q2 FY26, retaining the number one position in the region and cementing a leadership streak that has continued throughout the past six quarters.

Shares of Ather ended 4.5% down at INR 625.10 on BSE today.

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