Ather Energy Turns Profitable in Q2, Plans ₹122 Cr Capex

reported a significant improvement in its financial performance for Q2, posting a standalone net profit of ₹1.3 crore compared with a loss of ₹154 crore in the corresponding quarter last year. The result also came ahead of market expectations, which had anticipated a net loss of approximately ₹58 crore. The company’s EBITDA turned positive at ₹11.4 crore, against an EBITDA loss of ₹133 crore a year earlier. This was also better than the estimated EBITDA loss of ₹37 crore. EBITDA margin stood at 0.78%, compared with the estimated negative margin of 2.6%, indicating a substantial improvement in operating performance. Alongside the financial improvement, Ather Energy’s board has approved a manufacturing capacity expansion involving capital expenditure of ₹122 crore. The company plans to increase capacity at its Hosur facility from 4.20 lakh units to 4.95 lakh units. Factory 3.0 capacity is also set to rise from 5 lakh units to 6.5 lakh units. The Hosur expansion is expected to be completed by December 2026, while the Factory 3.0 expansion is targeted for Q2 FY28. The additional capacity could support the company’s future production requirements as it works to scale its electric two-wheeler business. Investors will monitor whether Ather can sustain profitability in subsequent quarters while managing the costs associated with its expansion plans. Key factors to watch include operating margins, demand growth, production utilisation and the returns generated from the planned capital expenditure. Disclosure: I do not hold any position or financial interest in the mentioned stock.