Ather Energy Posts Maiden Quarterly Profit Amid Manufacturing Strains
Electric two-wheeler manufacturer Ather Energy recorded its first profitable quarter, as high demand highlights urgent needs for production capacity expansion.
Ather Energy achieved a net profit of ₹1.3 Cr for Q2 FY27, marking its first profitable quarter after 13 years of operations. While operating revenue grew 62.9% to ₹1,464.2 Cr, the company remains focused on balancing rising production costs, as its net profitability was supported by secondary income sources.
Operational scaling remains the company's primary hurdle. With its existing plant in Hosur operating at 98% capacity, Ather is investing ₹122 Cr to expand output by 225,000 units annually. The company reports that demand currently outpaces production, leading to a monthly shortfall of approximately 18,000 to 20,000 units.
The broader Indian startup ecosystem also saw significant activity this quarter. Fintech major Paytm reported a substantial increase in net profit to ₹225 Cr, while the edtech sector faces further consolidation, evidenced by Imarticus planning an IPO and recent downward valuations for major players like Unacademy.