Ather Energy, a major player in the electric two-wheeler (E2W) market, significantly reduced its losses in Q3 FY26. The company reported a 57% decrease in loss, bringing it down to INR 84.6 Cr from INR 197.5 Cr in the same quarter last year. Sequentially, the loss fell by 45% from INR 154.1 Cr.
Operating revenue experienced substantial growth, surging 50% year-over-year (YoY) and 6% quarter-over-quarter (QoQ) to reach INR 953.6 Cr. Including other income of INR 42.1 Cr, the total income for the period amounted to INR 995.7 Cr. Total expenses, however, also increased by 27% YoY to INR 1,075.3 Cr.
Ather Energy highlighted improvements in adjusted gross margin, which expanded by 700 basis points YoY to 25%. Excluding government incentives, the adjusted gross margin stood at 23%, attributed to efficient supply-chain management, economies of scale, and enhanced manufacturing processes. Consequently, the EBITDA margin improved by 1,600 bps YoY to (-3%) in Q3 FY26, indicating progress toward achieving breakeven.
During the quarter, Ather sold 68,000 units, a 50% YoY increase and a 3% sequential rise. The company expanded its reach by adding 76 new experience centers, bringing the total to 600 by the end of December 2025. Plans are in place to increase this number to 700 by the end of FY26.
On the technology front, Ather rolled out multiple over-the-air (OTA) updates, including features like Infinite Cruise, Remote Control, and vernacular dashboards. They also expanded their AtherStack Pro software suite.
Ather’s E2W market share reached 18.8% in Q3 FY26, driven by the expansion of its distribution network and increasing popularity of its Rizta family scooter. Sales of this E2W surpassed 2 Lakh units during the quarter.
Ather maintained a strong presence in South India, holding 24.4% of the E2W market. In Central India, its market share nearly doubled YoY to 17.4%, with significant gains in states like Maharashtra, Gujarat, Madhya Pradesh, and Odisha. Newer markets in North and East India also showed strong traction, with the company’s market share in the Rest of India growing from 6% in Q3 FY25 to 12.6% in the current quarter, particularly in Jammu & Kashmir, Punjab, and Rajasthan.
Despite the positive financial results, Ather’s share price declined by 3.01% to INR 606.7 on BSE today.
