Electric two-wheeler maker Ather Energy turned its maiden profit in Q2 FY27, and now plans to sustain its growth momentum via accelerated investments in its manufacturing capabilities as demand continues to outpace its production. 

Other Income Drives Maiden Profit: After 13 years of innovating EV technology, Ather Energy posted its first-ever profitable quarter after turning EBITDA profitable in the preceding quarter as revenue growth far outpaced expenses, which rose 39.4% YoY to ₹1,526 Cr.  However, its operating revenue was ₹61.5 Cr lower than total expenses during the quarter, and the difference was plugged by other income, highlighting a continued quest to improve profitability margins. 

Manufacturing Boost On The Cards: The OEM will invest ₹122 Cr to add 2.25 Lakh units annually to its manufacturing capacity. Its under-construction Factory 3.0 in Maharashtra will receive ₹64 Cr to add 1.5 Lakh units of annual capacity over the planned 5 Lakh units. At its Hosur plant, Ather will invest ₹53 Cr to add capacity for 75,000 units and also set up a new battery line to offset supply chain worries. 

Ather Bleeds On Demand Front: The EV maker believes that it is losing 18,000-20,000 units in demand monthly due to its supply shortfall, with the Hosur plant now operating at 98% capacity and Factory 3.0 yet to go live. This comes as customer enquiries surged 109% YoY to around 10 Lakh, and pre-orders more than doubled to 1.8 Lakh. 

With demand outpacing production and factories nearing capacity, its next challenge is to keep the growth engine running.

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