Ather Energy (ATHERENERG) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 saw record sales of 66,000 units, up 67% year-on-year, with a 17.4% pan-India market share and leadership in South India at 25%.

• Distribution network expanded to 524 experience centers, more than doubling in one year, with a target of 700 by year-end.

• New product launches included high-range variants for 450S and Rizta S, Battery as a Service (BaaS), and the unveiling of the EL Platform and AtherStack 7.0 software.

• Unaudited financial results for Q2 and H1 FY26 were reviewed and approved by the Board on 10 November 2025.

• The company completed its IPO in the previous quarter, listing on NSE and BSE on 6 May 2025.

Financial highlights

• Total income for Q2 FY26 was INR 9,407 million, up 57% year-over-year and 40% quarter-on-quarter; adjusted gross margin at 22% (21% without incentives), up 300 bps YoY.

• EBITDA margin improved by 1,100 bps YoY to less than -10% in Q2 FY26; H1 FY26 loss was INR 3,323 million with a margin of -21%.

• Revenue from operations for Q2 FY26 was INR 8,989 million, up from INR 5,835 million in Q2 FY25.

• Rare earth supply crunch led to a one-time INR 20-25 crore hit in Q2, impacting subsidies and revenue, but issue resolved by quarter-end.

• Loss before tax for Q2 FY26 was INR 1,541 million, improving from INR 1,972 million in Q2 FY25.

Outlook and guidance

• Confident about maintaining AGM expansion and volume growth as supply chain issues are resolved; no expected volume impact from new plant delay.

• Planned further expansion of experience centers by end of FY26 and focus on scaling new product platforms and non-vehicle revenue streams.

• Business well-positioned to absorb upcoming subsidy removal, with strong tailwinds from accessories, service revenues, and software attachment.

• Deferred revenue recognition of INR 192 million due to supply chain disruptions from China's export ban on heavy rare earth magnets.

• Industry expected to grow 4-5x faster than overall two-wheeler market, with electric scooters growing 2-2.5x faster than ICE scooters.