Ather Energy shares surge 10% after Q2 profit turnaround; company earmarks ₹122 crore for expansion

The shares of Bengaluru-based electric two-wheeler startup Ather Energy surged 10% on Monday after the company reported a quarterly profit for the September quarter, marking a sharp improvement from a loss in the year-ago period. The company also announced a ₹122 crore investment to expand manufacturing capacity at its factories in Tamil Nadu and Maharashtra.

The stock rose ₹138 to hit ₹1,518 on the NSE, compared with its previous close of ₹1,380, according to market data at 2:36 pm.

Ather Energy reported a consolidated profit of ₹1.26 crore in the second quarter of FY27, compared with a loss of ₹154.07 crore in the corresponding quarter last year. The company had reported a loss of ₹51.09 crore in the June quarter.

Revenue from operations increased 63% year-on-year to ₹1,464.24 crore in Q2 FY27, from ₹898.88 crore a year earlier. Total income rose to ₹1,526.95 crore from ₹940.67 crore in the year-ago quarter.

EBITDA stood at ₹11.3 crore in the September quarter, compared with an EBITDA loss of ₹133 crore in the year-ago period. The EBITDA margin improved to 0.77%.

For the first half of FY27, Ather's consolidated loss narrowed to ₹49.83 crore from ₹332.30 crore in the corresponding period last year. Revenue from operations rose to ₹2,681.16 crore from ₹1,543.46 crore.

Ather Energy announces ₹122 crore capacity expansion

Separately, Ather Energy's board approved a capital expenditure of approximately ₹122 crore, including taxes, to increase annual production capacity at its Hosur factory in Tamil Nadu and its upcoming Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra.

At Hosur, the company plans to increase annual capacity from 4.2 lakh units to 4.95 lakh units, an addition of 75,000 units. The expansion is expected to be completed in December 2026, with an investment of up to ₹58 crore.

The company has earmarked up to ₹64 crore to increase the planned annual capacity at Factory 3.0 from five lakh units to 6.5 lakh units. This expansion is expected to be completed in the second quarter of FY28.

The investment at Hosur includes ₹53 crore for a new battery line, which Ather said would cater to demand scenarios and reduce supply-chain risks. The battery line is expected to be completed by the third quarter of FY28.

The company said the proposed expansions are aimed at scaling up long-term manufacturing output to meet business demand. The investments will be funded through a combination of debt and internal accruals.

The Hosur factory was operating at 98% of peak production capacity, according to the company's filing.