Ather Energy (ATHERENERG), a leading electric two-wheeler manufacturer in India, started FY26 with strong momentum, delivering sharp volume growth, improved margins, and rising market share. The company sold 46,078 units in Q1 FY26, a 97% year-on-year increase, driven by robust demand for the Ather Rizta and an expanding retail footprint with 95 new Experience Centres (ECs) added this quarter. Total income grew 83% year-on-year, with notable improvements in Adjusted Gross Margins and EBITDA, reflecting better cost structures and improved operational efficiency.
Key Financial and Market Share Highlights
For the quarter ended June 2025, Ather Energy reported total income of ₹672.9 crore, up 83% year-on-year, driven by strong volume growth. Non-vehicle revenue, primarily from Ather's ecosystem offerings such as software, accessories, and service, contributed 12% of the total income.
This strong revenue performance was accompanied by a sharp improvement in margins. Adjusted Gross Margin stood at ₹154.8 crore, up 117% year-on-year. This improvement was largely led by Ather's sustained focus on R&D-led value engineering, a product skew of more premium offerings in the portfolio, and favourable commodity costs, particularly battery cells. The increasing contribution of non-vehicle revenue, which commands higher margins, added further momentum. Adjusted Gross Margin excluding incentives improved to 20%, up ~700 bps year-on-year, highlighting Ather's strong focus on improving unit economics. As Ather continues on its path to profitability, the EBITDA margin improved to -16%, by ~1,700 bps year-on-year, narrowing EBITDA losses to ₹106.0 crores. Losses after tax for the quarter also narrowed to ₹178.2 crore.
Ather Energy's market share continued to strengthen alongside its financial performance. The company's national market share rose to 14.3% in Q1 FY26, up from 7.6% in Q1 FY25. Ather retained its leadership position in South India with a dominant 22.8% market share. In Middle India, its share grew 2.6x year-on-year to 10.7%, driven by rapid retail expansion.
Strategic Developments During the Quarter
Following the addition of 86 new ECs in Q4FY25, the Company has continued its aggressive retail expansion into Q1FY26, establishing a further 95 new ECs in India. This significant momentum has expanded Ather's nationwide presence to a robust 446 ECs by quarter-end. The company is deploying multiple retail formats tailored to different tiers. This has helped lower breakeven volumes and improve operational efficiency.
Ather continues to strengthen its ecosystem with sustained investments across software and charging infrastructure. AtherStack Pro adoption remains strong, reflecting growing customer preference for a software-led riding experience. Ather's charging network also saw significant expansion this quarter, growing to 4,032 points across India, Nepal, and Sri Lanka, up from 3,611 last quarter.
Tarun Mehta, Executive Director and CEO at Ather Energy, said, "We have had a phenomenal start to this financial year, led by Rizta's success and a strong expansion of our retail footprint. We were No.1 by market share in South India this quarter and are now scaling up quickly across Middle India, which has ramped up faster than expected. Over the next quarters, there will be a larger footprint expansion in the Northern markets. This quarter saw significant growth in our margins, demonstrating our strong focus on profitability. Even as we expand pan-India, our ASP has held steady, and our market share continues to grow."
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