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Ather Cracks Profitability In Q2, But Can It Sustain The Momentum?

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Ather Cracks Profitability In Q2, But Can It Sustain The Momentum?

Q2 FY27 marked a major milestone for Ather Energy as the listed electric vehicle (EV) major turned profitable for the first time. 

The Tarun Mehta-led company reported a consolidated net profit of ₹1.3 Cr during the quarter under review compared to a net loss of ₹154.1 Cr in q2 FY26 and a net loss of ₹51.1 Cr in the preceding quarter. 

This was also the first EBITDA-positive quarter for Ather as margins improved to 4.9% from -9.6% in Q2 FY26. Excluding other income, the EV maker’s EBITDA margins stood at roughly 0.8-1%, while adjusted gross margins further improved to 24%. 

With this, the EV maker has achieved a milestone that most of its new-age rivals, including listed Ola Electric, is yet to crack. Such is the contrast that Goldman Sachs recently downgraded its outlook on Ola Electric to “sell”, citing the Bhavish Aggarwal-led company’s challenging path towards turning positive cash flow.

However, Ather is not yet “out of the woods,” insisted CEO Mehta during the company’s earnings call. Rather than prioritising profit after tax (PAT), he said that the company is focused on capacity addition to ramp up its sales volumes and bolster its top line. 

25 Lakh units per year. 4 Lakh units by Q2 FY28 – a core part of its medium-term strategy.



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