Ather Energy, a frontrunner in India’s electric two-wheeler revolution, has announced its strongest ever quarterly performance for Q3 FY26. The company reported record-breaking revenue and a massive leap toward profitability, fueled by high festive demand and a rapidly expanding retail footprint.
Financial Turnaround: Revenue Hits All-Time High
For the quarter ending December 2025, Ather Energy reported a total income of ₹995.7 crore, representing a 53% year-on-year (YoY) growth. This surge was underpinned by the company’s highest-ever quarterly sales volume of 67,851 units, a 50% increase compared to the previous year.Operating revenue (revenue from operations) stood at ₹953.6 crore, up 50.2% YoY from ₹634.9 crore in Q3 FY25. The strong performance was driven by robust demand during the festive season, higher realizations, and a growing contribution from non-vehicle revenue streams—such as software subscriptions, charging services, accessories, spares, and maintenance—which accounted for 14% of overall revenue.
The most significant highlight was the sharp improvement in margins. Ather’s EBITDA margin improved by ~1,600 basis points (bps) YoY, narrowing to just (-3%) from -19% in the year-ago period. The quarterly EBITDA loss dropped to ₹29.9 crore, reflecting a 45% sequential improvement over Q2 FY26 and underscoring strong operating leverage as volumes scaled.
Adjusted Gross Margin (AGM) reached ₹251.3 crore, up 111% YoY, while AGM excluding incentives improved to 23%, a rise of around 1,100 bps YoY. These gains stemmed from value engineering, premium pricing power, supply-chain optimizations, and disciplined cost management.Net loss for the quarter narrowed dramatically by 57% YoY to ₹84.6 crore (from ₹197.5 crore in Q3 FY25), and sequentially by 45% from ₹154.1 crore in the previous quarter. This progress positions Ather on a clear path toward sustainable profitability amid India’s booming EV adoption.
Market Share and Retail Expansion
Ather captured a pan-India electric two-wheeler market share of 18.8% in Q3 FY26, up significantly from 12.3% a year earlier. The performance was bolstered by strong sales of models like the Rizta family scooter and deeper geographic penetration.The company aggressively expanded its retail network, adding 76 new experience centres during the quarter to reach 600 nationwide. Plans are in place to grow this to 700 by the fiscal year-end, enhancing accessibility and customer engagement across urban and emerging markets.
Strategic Outlook and Challenges
This record quarter highlights Ather’s maturing business model, with structural improvements in unit economics, ecosystem diversification, and manufacturing efficiencies translating into tangible financial gains. CEO Tarun Mehta emphasized the quarter’s strength, noting around 68,000 units sold and the company’s focus on healthier margins amid scaling operations.
However, the management flagged potential near-term headwinds from volatile commodity and component prices, which could impact costs given that materials constitute about 70% of total expenses.
Despite these challenges, Ather’s momentum in Q3 FY26 reinforces its leadership in India’s premium electric two-wheeler segment. With continued festive tailwinds, network growth, and a path to breakeven, the company is well-positioned to capitalize on the accelerating shift toward sustainable mobility in the country.As Ather builds on this momentum into the final quarter of FY26, the focus remains on delivering profitable, scalable growth while navigating market dynamics. Stay tuned for further updates on this dynamic EV leader!
