Small Profit at the Operating Line, Big Signal for Electric Two-Wheelers

Headline and Overview

Inc42 reported on 3 August 2026 that Ather Energy's net loss for the quarter ended 30 June 2026 narrowed 71% year on year to Rs 51.1 crore, from Rs 178.2 crore, and was down 49% from Rs 100.2 crore in the previous quarter. Operating revenue rose 89% year on year to Rs 1,216.9 crore, and 4% from the previous quarter. With other income of Rs 42.7 crore, total income was Rs 1,259.7 crore against total expenses of Rs 1,310.7 crore, up 54% year on year.

The turning point

EBITDA was Rs 9 crore, compared with a loss of Rs 106 crore in the first quarter of FY26. That is a margin of about 1%, against minus 16% a year earlier, and the article described it as the company's first positive EBITDA in the period it covers. Adjusted gross margin rose 82% year on year to Rs 282 crore. Revenue from non-vehicle sources, including software subscriptions, charging, accessories, spares and after-sales, was 14% of operating revenue, up from 13%.

“A one per cent margin is small, but it is the first time the line crossed zero.”

Volumes and demand

The company delivered 83,173 electric scooters, up 81% year on year. Enquiries were 7.07 lakh, up 95%, and pre-orders were 1.5 lakh, up 158%. For context, the article said India's electric two-wheeler registrations rose 68% year on year to about 5.25 lakh units in the June quarter, and that EV penetration crossed 10% for the first time in June. It did not report Ather's market share or store count.

Capacity

Phase 1 of Factory 3.0 in Chhatrapati Sambhaji Nagar is on track to start production in the third quarter of FY27, adding 5 lakh units of annual capacity, and total installed capacity is expected to reach 14.2 lakh units a year once both phases are running. The first production scooter on the company's next-generation EL platform was due to be unveiled at Ather Community Day on 29 August. The shares closed 0.98% higher at Rs 1,273.15 on the BSE on the day of the report. The article contained no executive quotes.

Why watch: our analysis

1. Operating leverage is showing. Revenue grew far faster than expenses (89% against 54%), which is how a manufacturer moves towards profit. 2. Software and services add a second layer. A growing non-vehicle share, still modest at 14%, supports margins and customer retention. 3. Demand indicators are ahead of deliveries. Pre-orders up 158% and enquiries up 95% suggest further growth, though enquiries do not always turn into sales. 4. Capacity is the next test. A new factory adds fixed costs before it adds sales. How quickly it fills will decide the margin path.

Risks

A 1% EBITDA margin is thin and can be erased by a change in input costs or incentives. The company is still loss-making at the net level. Competition in electric two-wheelers is intense, and the article did not report market share, so we cannot say whether the company is gaining or losing ground against rivals. Policy support for electric vehicles can change.

What suppliers should note

A plant that adds 5 lakh units of capacity will need components, batteries, castings and logistics. Suppliers near Maharashtra's Marathwada region and in the south should expect procurement activity.

Reading a first positive EBITDA and seasonality

EBITDA is a measure of operating performance before interest, taxes, depreciation and amortisation. A positive number means the core business covered its day-to-day costs in that quarter. It does not mean the company is profitable after those items, and the net loss of Rs 51.1 crore shows it is not. Still, for a manufacturer investing in factories and technology, crossing zero at this level is a recognised milestone, because it suggests that further growth can bring more profit rather than more losses. The next several quarters will show whether the improvement holds as depreciation from the new plant begins.

Two-wheeler demand moves with festivals, financing offers and government incentives, so a single quarter should be compared with the same quarter a year earlier, as the report did, and with the next one before drawing conclusions. If support for electric vehicles changes, margins for every maker will be affected, not only this one. Buyers should check what incentives apply when they purchase, and what the battery warranty covers, since the battery is the costliest component to replace.

Independent editorial profile built from Inc42's reporting on the company's results.