Electric two-wheeler maker Ather Energy reported a strong operational performance in the third quarter of FY26, delivering sharp revenue growth while significantly reducing losses on the back of scale and cost discipline.
According to the company’s quarterly filing with the National Stock Exchange (NSE), revenue from operations rose 50% year-on-year to ₹954 crore in Q3 FY26, compared with ₹635 crore in Q3 FY25.
Nine-Month Performance
For the nine months ended December 2025, Ather’s operating revenue stood at ₹2,497 crore, up from ₹1,579 crore in the corresponding period last year. During this period, the company sold 1,79,525 electric two-wheelers, underscoring continued demand across key urban markets.
Sales of electric scooters and allied services remained the sole source of revenue, though the company did not provide a segment-wise breakup.
Costs and Margins
On the cost side, materials consumption, led by battery packs and key components, accounted for 69% of total costs, amounting to ₹744 crore in Q3 FY26.
- Employee benefit expenses increased 14% YoY to ₹122 crore
- Depreciation, amortisation, legal, advertising and other overheads pushed total costs to ₹1,075 crore, up from ₹848 crore a year earlier
Despite higher absolute costs, operating leverage played out as volumes scaled.
Losses Reduce Sharply
The expansion in revenue, combined with tighter cost controls, helped Ather cut its quarterly losses by 57% to ₹85 crore, compared with ₹198 crore in Q3 FY25, marking one of the company’s strongest profitability improvements to date.
Strategic and Market Updates
Recently, Ather entered the auto insurance segment by incorporating a wholly owned subsidiary that will operate as a corporate insurance agent.
In November, National Investment and Infrastructure Fund (NIIF) sold 49% of its holding, equivalent to 2.28% of Ather’s paid-up capital, through open market transactions worth ₹541 crore.
According to Vahan data, Ather retained its third position in the electric two-wheeler market in December, with registrations at 16,391 units, translating to a 17.62% market share, despite a month-on-month decline.
Market Position
After overtaking Ola Electric in market capitalisation earlier, Ather also surpassed Ola in Q2 FY26 revenue. Ola Electric’s Q3 FY26 results are yet to be announced.
As of 4:55 PM, Ather’s shares were trading at ₹610, giving the company a market capitalisation of ₹23,292 crore (around $2.5 billion).
Why It Matters
Ather Energy’s Q3 FY26 performance highlights a clear path toward operating leverage in India’s competitive EV two-wheeler market. Sustaining volume growth while keeping input and overhead costs in check will be critical as competition intensifies and pricing pressure persists.
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