The company said the expansion in margins during the September quarter was mostly driven by its product mix and pricing decisions despite a high input-cost environment.

Ather Energy’s gross margin per vehicle has reached about 21 per cent, surpassing legacy two-wheeler OEMs despite cost pressures.

Capacity constraints limited potential retail sales by up to 20,000 units a month, prompting Ather to raise planned annual capacity to 11.4 lakh units.

Ather reported its first-ever quarterly profit of ₹1.26 crore in Q2 FY27, with revenue rising 62.8 per cent year-on-year to ₹1,464 crore.

Ather aims to scale production and sustain demand for its mass-market scooters.

India’s electric two-wheeler growth (e2W) story appears to be reaching a decisive turn, as penetration grows and OEMs’ profitability metrics improve. Ather Energy , the electric first OEM which reported its first-ever quarterly profit in the September quarter, has already beaten legacy 2W OEMs in gross margin per vehicle at about 21 per cent. Ather said after the quarterly results this week that the expansion in margins during the preceding three months was mostly driven by its product mix and pricing decisions despite a high input-cost environment. Advt

8 per cent and the company maintained its third position in the market share pecking order. TVS Motor Company and Bajaj Auto remained at the first and second positions, respectively. Since both are legacy ICE 2W OEMs, it is interesting to see that an electric-first OEM could manage to beat them on gross margins despite cost challenges and lower sales.

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