Electric scooter manufacturer Ather Energy reported a significant improvement in its financial performance for the second quarter (Q2), with net losses narrowing to Rs 154 crore, compared with Rs 342 crore in the same period last year. The Bengaluru-based company attributed the improvement to robust revenue growth, cost optimization, and operational efficiencies. Revenue from operations rose sharply to Rs 1,753 crore, driven by strong demand for its electric two-wheelers and expanding retail footprint. Ather’s performance underscores growing consumer confidence in India’s EV sector and the company’s progress toward profitability.
Revenue Surge Reflects Expanding Market Presence
Ather Energy’s Rs 1,753 crore revenue in Q2 marked a 119% year-on-year increase, supported by sustained consumer interest in its flagship models — the Ather 450X and Ather Rizta. The company’s network expansion and focus on improving delivery timelines contributed to stronger sales momentum across major Indian cities.
The quarter also saw Ather benefiting from favorable market dynamics, as demand for premium electric scooters continued to grow, bolstered by government incentives, rising fuel prices, and a shift toward sustainable mobility solutions. The brand has maintained a strong position in the competitive EV landscape, leveraging its innovation-driven product lineup and technology-backed aftersales ecosystem.
Operational Discipline Drives Loss Reduction
Ather’s narrowed loss of Rs 154 crore compared with Rs 342 crore a year earlier highlights its ongoing focus on cost control and efficiency enhancement. The company has been steadily reducing its cash burn by optimizing production costs, improving supply chain integration, and rationalizing marketing expenditure without compromising brand visibility.
Management attributed the improved financial performance to economies of scale achieved through higher sales volumes and better utilization of manufacturing capacity. Additionally, the company’s investment in localization — including the production of critical components within India — has reduced dependency on imports and mitigated the impact of global supply chain disruptions.
EV Ecosystem Expansion and Strategic Partnerships
Beyond manufacturing, Ather continued to strengthen its position in the EV ecosystem through strategic collaborations and infrastructure expansion. The company’s Ather Grid, one of India’s largest public fast-charging networks, has been a key differentiator in its growth strategy.
During the quarter, Ather expanded its charging network across over 500 cities, enhancing accessibility for its growing customer base. It also deepened partnerships with component suppliers and fintech players to streamline financing options for customers, a critical factor in boosting adoption rates in price-sensitive markets.
The company’s focus on research and development (R&D) remains central to its growth blueprint. Ather continues to invest in software-driven features, energy-efficient battery technology, and performance optimization to strengthen its technological edge in the evolving EV landscape.
Industry Context: EV Demand Remains Resilient
India’s electric two-wheeler market has demonstrated strong resilience amid broader macroeconomic headwinds. The segment recorded over 10 lakh unit sales in FY24, underscoring the growing mainstream acceptance of EVs.
Ather’s performance aligns with this broader trend, as consumers increasingly prioritize sustainability, cost savings, and innovation. However, the sector continues to face challenges such as fluctuating subsidy policies and the need for greater infrastructure standardization.
Industry analysts note that Ather’s ability to sustain revenue growth while reducing losses reflects maturing unit economics and effective capital deployment, both of which are critical as the company eyes eventual profitability and potential public listing.
Outlook: Path to Profitability and Market Leadership
Ather Energy’s improving financial trajectory signals a potential turning point in its journey toward profitability. With a strong order book, product innovation pipeline, and deepening nationwide presence, the company is well-positioned to capitalize on India’s rapidly expanding EV ecosystem.
Going forward, Ather aims to diversify its product range to cater to different price segments and consumer preferences, while continuing to scale its manufacturing capacity to meet rising demand. The company’s strategic emphasis on localized production, digital integration, and customer experience enhancement will remain key to its growth strategy.
If current trends continue, Ather could soon transition from a high-growth startup to a profitable, mainstream EV manufacturer, reinforcing India’s credentials as a global hub for electric mobility innovation.
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