New Delhi: Ather Power Ltd reported report income within the December quarter and inched nearer to profitability at the same time as electrical two-wheeler penetration fell within the festive quarter after tax cuts on fossil fuel-powered autos.
The maker of Rizta electrical scooter noticed its losses greater than halve to ₹85 crore from a 12 months earlier as its earnings earlier than curiosity, tax, depreciation and amortization (Ebitda) or working margin improved by 16 share factors from -19% to -3% within the third quarter of monetary 12 months 2026. Whole income surged 53% year-on-year ₹996 crore, pushed by a 50% bounce in e-scooter gross sales to 68,000 items throughout the quarter.
“That is definitely a reasonably sturdy efficiency by our companions throughout the nation. Distribution has continued to develop just about consistent with what we had guided,” Tarun Mehta, co-founder and chief govt at Ather, advised analysts and buyers throughout the post-earnings name on Monday.
“We closed Q3 with 600 shops open pan India, and we’re very a lot in line for opening 700 shops by the tip of this fiscal,” he stated, attributing growing distribution as a development driver.
Ather’s gross sales and income surged even because the September cuts in items and companies tax introduced down costs of inside combustion engine (ICE) autos, bringing down the share of EVs within the October-December interval. In keeping with Federation of Car Dealerships Associations (Fada) information, EV penetration fell from 8% in September to 4.6% in November, earlier than recovering to 7.4% in December.
GST on most ICE two-wheelers was lowered from 28% to 18% in September, whereas EVs remained at a concessional fee of 5%, narrowing the value hole between them.
Ather is the primary pure electrical automobile firm to launch its quarterly outcomes, with its bigger rivals Bajaj Auto Ltd and TVS Motor Co. reporting outcomes final week.
The sharp enchancment in Ather’s profitability margins got here in 1 / 4 when Bajaj Auto’s battery-powered two-wheeler enterprise broke even operationally. Erstwhile market chief Ola Electrical had achieved Ebitda (earnings earlier than curiosity, taxes, depreciation, and amortization) breakeven for its EV two-wheeler enterprise within the July-September quarter.
Ather stated its margins improved on the again of attaining scale in gross sales and higher value administration. However the market will face headwinds forward as enter prices are rising, and the federal government’s subsidy for electrical two-wheelers underneath the PM E Drive scheme will finish by March.
Market share
Greater gross sales have made Ather India’s third-largest electrical two-wheeler maker, leaving its cross-town rival Ola Electrical Ltd and its largest shareholder Hero MotoCorp Ltd behind. TVS Motor leads the market, adopted by Bajaj Auto.
Ather Power offered 21,924 scooters in January, almost 3 times the 7,512 items recorded by Ola, in line with information from the federal government Vahan portal. Ola’s gross sales in January have been the bottom because it went public in August 2024.
Ather’s Mehta stated the electrical two-wheeler business is continuous to develop regardless of the GST cutssuggesting that business observers have to view sub- ₹1 lakh and over- ₹1 lakh scooters individually.
“The actual development within the EV two-wheeler business is being masked as a result of loads of autos under the ₹1 lakh value factors have shrunk prior to now one 12 months. Merchandise priced above ₹1 lakh have grown at a gorgeous development fee over the past 18 months,” Mehta stated throughout the earnings name.
“Whenever you put all the business collectively, you see a really humble development…A number of fluff within the sub- ₹1 lakh has disappeared. There are patrons within the section and loads of good merchandise are there now, so the expansion ought to come again,” Mehta stated, including that with indicators already seen of restoration.
Ather’s shares fell by 2.5% on Monday in opposition to a 2.1% rise in Nifty Auto. However buyers have proven religion within the inventory, which has doubled prior to now eight months for the reason that firm listed.