Ather Energy posts first quarterly profit, shares rise 10%

What happened

Indian electric scooter maker Ather Energy reported its first quarterly profit, with shares rising 10%. It posted a second-quarter net profit of 15 million rupees ($157,546.48), compared with a loss of 1.54 billion rupees a year earlier, while revenue rose 62.9% to 14.64 billion rupees.

Confirmed

Global impact / market context

Turning a profit means Ather now keeps money after covering costs, which can fund expansion without relying only on outside investors. Higher revenue shows more scooters were sold, and the planned factory additions are meant to meet demand that currently exceeds production capacity.

Analyst inference

Ather faces high raw material costs from Middle East war-driven supply chain disruptions, yet it improved profit per sale through product mix and pricing. High fuel prices and concerns about India's E20 petrol rollout, which contains 20% ethanol, have supported electric vehicle adoption, helping demand outpace production.

Analyst inference

What to watch

1. Ather plans to add 75,000 units of annual capacity at its Hosur plant in December, and 150,000 units at its Chhatrapati Sambhajinagar plant in the second quarter of fiscal 2028. Confirmed
2. The Hosur expansion includes a 530 million rupee investment in a new battery line, aimed at diversifying the company's supply chain as raw material costs remain high. Confirmed
3. Watch whether demand keeps outpacing capacity, since Hosur ran at 98% utilisation; slower electric vehicle adoption or easing fuel prices could reduce orders and pressure the new profit. Analyst inference

Evidence

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