Ather Energy has reported its strongest quarterly performance to date in the December 2025 quarter, with revenue rising sharply and losses narrowing on the back of higher vehicle sales and better operating efficiency. The Bengaluru-based electric two-wheeler maker competes directly with Ola Electric in India’s fast-growing EV market.
For the third quarter of FY26, revenue from operations increased to Rs 954 crore, marking a year-on-year growth of about 50% compared with Rs 635 crore in the same quarter last year. Total income for the quarter stood at Rs 995.7 crore, supported by higher sales volumes and growing contributions from non-vehicle revenue streams.
Non-vehicle income, including software subscriptions, charging services, accessories, spares and servicing, accounted for around 14% of quarterly revenue. This reflected Ather’s continued focus on building a wider ecosystem around its vehicles rather than relying only on scooter sales.
During the quarter, Ather sold 67,851 electric scooters and achieved a pan-India electric two-wheeler market share of 18.8%. Over the nine months ended December 2025, cumulative vehicle sales reached 1,79,525 units, while revenue from operations rose to Rs 2,497 crore from Rs 1,579 crore in the corresponding period a year earlier.
Margins Improve Sharply
Improved scale and stronger unit economics led to a sharp expansion in margins during the quarter. Adjusted gross margin rose 111% year-on-year to Rs 251.3 crore in Q3 FY26. Excluding incentives, gross margin improved to 23%, reflecting benefits from value engineering, pricing discipline and a richer product mix.
Earnings before interest, tax, depreciation and amortisation showed a marked improvement. EBITDA margin improved by around 1,600 basis points year-on-year to negative 3%. EBITDA loss narrowed to Rs 29.9 crore, while overall net loss declined 57% year-on-year to Rs 85 crore from Rs 198 crore in Q3 FY25.
On the cost side, material costs, largely related to battery packs and components, stood at Rs 744 crore and accounted for nearly 69% of total expenses. Employee benefit expenses rose 14% year-on-year to Rs 122 crore, reflecting workforce expansion.
Depreciation, advertising, legal and other overheads pushed total expenses to Rs 1,075 crore, compared with Rs 848 crore a year earlier. Despite higher absolute costs, improved operating leverage helped reduce losses significantly.
Market Share Gains
Ather strengthened its market position across regions during the quarter. South India remained its strongest market, where it retained leadership with a 24.4% share, supported by a well-established retail network and strong brand presence.
In Middle India, market share nearly doubled to 17.4% from 8.8% a year earlier, driven by higher demand in states such as Gujarat, Maharashtra, Madhya Pradesh and Odisha. In the rest of India, market share rose to 12.6%, reflecting steady gains in northern and emerging markets.
The festive period proved particularly strong, with the company recording its highest-ever monthly registrations of about 30,900 units, translating into a 20% market share during that period.
To support growth, Ather expanded its retail footprint by adding 76 new Experience Centres in Q3, taking the total to 600 across the country.
Ecosystem Expansion
Alongside vehicle sales, Ather continued to scale its ecosystem-led offerings. Around 91% of customers opted for AtherStack Pro, the company’s paid software package that includes connected features related to safety, navigation and convenience.
The Ather Grid charging network expanded to 4,357 fast-charging points and neighbourhood chargers across India, Nepal and Sri Lanka, strengthening charging access for customers.
Separately, the company has incorporated a wholly owned subsidiary to enter the auto insurance segment as a corporate agent, indicating plans to further widen its service portfolio beyond vehicles and charging infrastructure.
In November, the National Investment and Infrastructure Fund (NIIF) sold 49% of its holding in one of its Ather-linked vehicles, representing about 2.28% of Ather Energy’s total paid-up capital, through open market transactions worth Rs 541 crore.
According to Vahan data, Ather retained its third position in the electric two-wheeler market in December, with registrations of 16,391 units, down 20% month-on-month from November, and a market share of 17.62%.
The company had earlier overtaken Ola Electric in revenue in Q2 FY26, and its performance in Q3 further underscored improving scale and financial traction ahead of the broader sector’s upcoming earnings announcements.
