Ather Energy reported a strong improvement in its financial performance for the first quarter of FY27, with operating revenue surging 89% year-on-year to ₹1,217 crore, while its net loss narrowed sharply by 71% to ₹51 crore. The Bengaluru-based electric two-wheeler maker benefited from robust demand for its scooter portfolio, particularly the Rizta, as higher vehicle sales helped offset rising material and operating costs. The results highlight Ather’s continued progress toward profitability amid intensifying competition in India’s electric two-wheeler market.
The company also reported higher vehicle deliveries, improved operating leverage, and continued investment in manufacturing and product expansion. The strong quarterly performance comes shortly after Ather secured ₹1,200 crore through a preferential share issue led by existing investor Hero MotoCorp, providing additional capital to support capacity expansion, research and development, and future product launches.
Ather Energy Delivers Strong Q1 FY27 Growth
For the quarter ended June 2026:
- Operating revenue rose 89% to ₹1,217 crore from ₹645 crore a year earlier.
- Net loss narrowed 71% to ₹51 crore from ₹178 crore.
- Total income increased to ₹1,260 crore, including ₹43 crore in other income.
- Vehicle sales remained the company’s primary source of revenue.
Q1 FY27 Financial Snapshot
| Metric | Q1 FY27 | Q1 FY26 | YoY Change |
|---|---|---|---|
| Operating Revenue | ₹1,217 crore | ₹645 crore | +89% |
| Total Income | ₹1,260 crore | — | — |
| Net Loss | ₹51 crore | ₹178 crore | -71% |
Higher Sales Drive Improved Profitability
Ather’s improving financial performance was supported by higher electric scooter sales.
During the quarter:
- The company sold 88,655 electric two-wheelers.
- Sales increased from 81,072 units in Q4 FY26.
- Strong demand for the Rizta family scooter continued to support overall volumes.
Greater sales volumes enabled the company to spread fixed costs across more vehicles, contributing to a significant reduction in quarterly losses despite higher input costs.
Sales Performance
| Metric | Q1 FY27 |
|---|---|
| Vehicles Sold | 88,655 |
| Previous Quarter (Q4 FY26) | 81,072 |
| Key Growth Driver | Rizta electric scooter |
Costs Rise as Production Expands
Rival EV makers have also reported improving numbers this quarter, with Ola Electric cutting its Q1 loss to ₹336 crore even as revenue fell 45%.
While revenue grew rapidly, Ather also recorded higher expenses as production scaled up.
Key cost trends included:
- Material costs climbed 88% year-on-year to ₹977 crore.
- Raw materials accounted for roughly 75% of total expenditure.
- Employee benefit expenses remained broadly stable at ₹118 crore.
- Total expenditure increased to ₹1,311 crore, reflecting higher production, depreciation, marketing, legal, and operating expenses.
The increase in battery cell and component costs continued to weigh on margins, although stronger revenue growth more than compensated for these pressures.
Strengthening Position in India’s EV Market
According to Vahan registration data:
- Ather retained the third position in India’s electric two-wheeler market during July.
- The company recorded 28,819 vehicle registrations.
- Market share stood at 14.89%.
Competition remains intense as manufacturers including Ola Electric, TVS Motor, Bajaj Auto, and Hero MotoCorp continue expanding their EV portfolios.
Capital Raise to Support Future Growth
Other high-growth Indian companies have posted similarly sharp improvements, including Shadowfax, whose Q1 revenue rose to ₹1,358 crore as profit jumped over 8x.
Last month, Ather approved a ₹1,200 crore preferential issue to strengthen its balance sheet and fund expansion.
The investment includes:
- Hero MotoCorp: Nearly ₹960 crore.
- India-Japan Fund (IJF): ₹200 crore.
- Promoters: Approximately ₹40 crore.
The fresh capital is expected to support:
- Capacity expansion.
- Research and development.
- New product launches.
- Manufacturing investments.
- Working capital requirements.
Looking Ahead
Ather Energy’s Q1 FY27 results indicate meaningful progress toward sustainable profitability, with strong revenue growth and a sharp reduction in losses demonstrating the benefits of rising production volumes and increasing demand for its electric scooters. Revenue nearly doubled to ₹1,217 crore while net losses narrowed to just ₹51 crore, highlighting improving operating leverage despite continued pressure from raw material costs.
Looking ahead, the company’s ability to maintain sales momentum, improve gross margins, and efficiently deploy the ₹1,200 crore raised through its recent preferential issue will be closely watched. As India’s electric two-wheeler market continues to expand, Ather’s growing product portfolio, expanding manufacturing capacity, and focus on operational efficiency could further strengthen its competitive position and accelerate its path toward profitability.
Frequently Asked Questions
How much did Ather Energy’s revenue grow in Q1 FY27?
Ather Energy’s operating revenue surged 89% year-on-year to ₹1,217 crore in the first quarter of FY27.
How much did Ather Energy’s net loss narrow?
Its net loss narrowed sharply by 71% to ₹51 crore.
What is driving Ather Energy’s improved performance?
Robust demand for its scooter portfolio, particularly the Rizta, helped offset rising material and operating costs.
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