Ather Energy Q2 FY27: Profit Turns Positive at ₹1.26 Crore

Ather Energy (

) reported its first-ever quarterly net profit in Q2 FY27, marking a significant milestone for the electric two-wheeler manufacturer. Revenue grew nearly 63% year-on-year, while operating performance improved sharply. The company has also approved ₹122 crore in capacity expansion to meet rising demand. Key Q2 FY27 Highlights - Net profit: ₹1.26 crore versus a net loss of ₹154.07 crore in Q2 FY26. - Revenue from operations: ₹1,464.24 crore, up 62.9% YoY. - EBITDA: ₹74.2 crore, marking the second consecutive EBITDA-positive quarter. - EBITDA margin: 4.9%, compared with -9.6% a year ago. - Vehicle volumes: 93,211 units, up 42% YoY. - Adjusted gross margin: Improved 160 basis points to 24%. What Is Driving the Turnaround? Ather's growth reflects stronger electric scooter demand, improved product mix and pricing measures. Non-vehicle revenue from software, charging, accessories and services also increased its contribution to the business. The company has approved approximately ₹122 crore in capacity expansion. Annual production capacity at Hosur is planned to rise from 4.2 lakh to 4.95 lakh units, while the upcoming Factory 3.0 in Maharashtra is expected to expand from 5 lakh to 6.5 lakh units. My View Ather's Q2 results indicate meaningful operating progress, but investors should distinguish between a quarterly profit milestone and a sustainably profitable business. The ₹1.26 crore net profit remains modest relative to revenue of ₹1,464 crore. The next phase will depend on maintaining volume growth, improving margins and managing commodity costs while expanding manufacturing capacity. I would closely track EBITDA margins, vehicle volumes, cash requirements and the company's ability to sustain positive net earnings. The EV opportunity is attractive, but valuation must reflect execution risks and the durability of profitability—not just the latest earnings surprise.