Ather Energy Delivers Strong Q1 FY27 Performance
Electric two-wheeler manufacturer Ather Energy reported a strong start to FY27, posting robust revenue growth and a sharp reduction in losses during the first quarter.
The company recorded ₹1,217 crore in revenue from operations in Q1 FY27, driven by strong growth in electric scooter sales.
Including ₹43 crore in other income, Ather’s total income for the quarter stood at ₹1,260 crore.
The results reflect improving operating performance as demand for electric two-wheelers continues to grow in India.
Vehicle Sales More Than Doubled
A major contributor to Ather’s improved financial performance was a sharp increase in vehicle deliveries.
The company sold:
- 88,655 electric scooters in Q1 FY27
- Compared to 41,083 units in Q1 FY26
The significant increase in deliveries helped improve revenue while reducing losses through better operating leverage.
Revenue Growth Supported by Higher Deliveries
Higher sales volumes enabled Ather to strengthen its financial performance despite continued investments in manufacturing and expansion.
The company also reported sequential growth in quarterly deliveries, with vehicle sales increasing from 81,072 units in Q4 FY26 to 88,655 units in Q1 FY27.
This demonstrates sustained customer demand across the electric two-wheeler market.
Material Costs Remain the Largest Expense
Like most EV manufacturers, Ather continues to spend the largest share of its operating costs on raw materials.
The cost of materials, including battery cells and other key components, increased 88% year-on-year to ₹977 crore during Q1 FY27.
Material costs accounted for nearly 75% of the company’s total expenditure, highlighting the importance of battery pricing and supply chain efficiency in the electric vehicle business.
Overall Expenses Increase
Total expenditure increased from ₹851 crore in Q1 FY26 to ₹1,311 crore during the latest quarter.
Apart from material costs, expenses included:
- Employee salaries and benefits
- Depreciation and amortisation
- Legal expenses
- Advertising and marketing
- Other operating costs
Employee benefit expenses remained largely stable at ₹118 crore during the quarter.
Losses Decline by 71%
One of the biggest highlights of the quarter was Ather’s significant improvement in profitability.
The company reduced its net loss by 71%, reporting:
- Net loss: ₹51 crore in Q1 FY27
- Compared to ₹178 crore in Q1 FY26
The improvement reflects stronger operating leverage as higher production volumes helped absorb fixed costs more efficiently.
Market Position
According to Vahan registration data, Ather maintained its position as India’s third-largest electric two-wheeler manufacturer in July.
The company registered:
- 28,819 vehicles
- Market share of 14.89%
Although registrations declined by 8.3% compared to the previous month, Ather retained its position among the country’s leading EV manufacturers.
Fresh Capital to Support Future Growth
Last month, Ather approved a ₹1,200 crore preferential issue to strengthen its financial position.
The investment includes:
- Hero MotoCorp: Nearly ₹960 crore
- India-Japan Fund (IJF): ₹200 crore
- Promoters: ₹40 crore
The additional capital is expected to support product development, manufacturing expansion and future growth initiatives.
Market Valuation
At the close of trading, Ather Energy’s shares ended at:
- ₹1,280 per share
The company was valued at approximately:
- ₹50,448 crore
- Approximately $5.3 billion
The valuation reflects continued investor confidence in India’s rapidly expanding electric mobility sector.
Final Thoughts
Ather Energy’s Q1 FY27 results indicate that the company is making meaningful progress toward improving its financial performance.
Strong revenue growth, higher vehicle sales and a substantial reduction in losses demonstrate the benefits of increasing production scale.
While raw material costs remain a significant challenge, continued investments from strategic investors such as Hero MotoCorp provide the company with additional resources to support expansion.
As India’s electric two-wheeler market continues to mature, Ather appears well-positioned to strengthen its market presence while moving closer to sustainable profitability.
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