Ather Energy shares skyrockets 12% after announcing str...

SYNOPSIS: This EV company delivered its strongest Q3 FY26, with revenue up 52 percent YoY, losses sharply reduced, margins improving, and market share rising to 18.8 percent, driven by strong volumes and execution.

During Tuesday’s trading session, shares of one of India’s leading electric two-wheeler manufacturers surged more than 12 percent on BSE, after reporting improvement in fundamentals with lower losses and highest ever revenue in Q3 FY26.

With a market cap of Rs. 25,256.8 crores, shares of Ather Energy Limited were trading in the green at Rs. 661.45 on BSE, up by around 9 perent, compared to its previous closing price of Rs. 606.7. The stock has delivered multibagger returns of around 119 percent since its listing, but has fallen by over 3 percent in the last one month.

Financials

Ather Energy Limited announced the financial results for the third quarter of FY26 on Monday after market hours, as per the latest regulatory filings with the stock exchanges. The company delivered its strongest-ever quarterly performance, marked by solid revenue growth, market share gains and a sharp reduction in losses.

For Q3 FY26, Ather posted a consolidated revenue from operations of Rs. 954 crores, reflecting a sequential growth of over 6 percent QoQ compared to Rs. 899 crores in Q2 FY26. On a year-on-year basis, revenue grew by more than 52 percent from Rs. 635 crores recorded in Q3 FY25.

Net loss for the quarter narrowed significantly to Rs. 85 crore, improving by about 45 percent on a sequential basis from Rs. 154 crore in Q2 FY26. On a year-on-year basis, losses reduced by nearly 57 percent compared to Rs. 198 crore in Q3 FY25.

During the quarter, the company sold 67,851 units, reflecting a robust growth of 50 percent YoY and 3 percent QoQ, supported by geographic expansion, a wider product portfolio, and growing non-vehicle revenue streams led by software offerings.

For the quarter ended December 2025, Ather reported total income of Rs. 995.7 crore, up 53 percent YoY, driven by strong volume growth and an increasing contribution from non-vehicle revenue streams, including software subscriptions, charging, accessories, spares, and service, which rose to 14 percent of revenue.

This strong revenue growth was accompanied by a sharp increase in margins. Adjusted Gross Margin (AGM) rose sharply to Rs. 251.3 crore in Q3 FY26, up 111 percent YoY. This improvement was supported by value engineering initiatives and Ather’s ability to command strong premiums, reflecting a continued focus on healthier unit economics and structurally stronger margins.

EBITDA performance continued to improve, with the margin narrowing to (-3 percent). EBITDA loss reduced to Rs. 30 crore, driven by better unit economics, disciplined cost control, and operating leverage from higher volumes. The steady reduction in losses reflects the impact of structural improvements made over the past year and positions the company to manage near-term margin volatility.

Ather Energy continued to strengthen its position in India’s electric 2W market during Q3 FY26, with its pan-India market share rising to 18.8 percent, up from 17.4 percent in Q2 FY26 and 12.3 percent in Q3 FY25. The festive season provided a strong boost, as the company recorded its highest-ever monthly registrations of 30,900 units, reflecting strong consumer demand and increasing brand preference.

South India remained Ather’s strongest market, where it retained leadership with a 24.4 percent market share, supported by deep penetration, strong brand recall, and a well-established retail and service network.

Ather Energy Limited is a pioneer in the Indian electric two-wheeler (E2W) market, engaged in the business of designing and manufacturing high-performance electric scooters. It operates the widest 2W fast charging network in the country.

As of December 2025, Ather has installed 4,357 fast chargers and neighbourhood chargers globally. With a strong emphasis on R&D and innovation, Ather holds 321 registered trademarks, 247 registered designs, and 50 registered patents, along with pending applications for 120 trademarks, 64 designs, and 536 patents globally.

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