Shares of Ather Energy skyrocketed as much as 18.78% in intraday trade on Monday after the electric two-wheeler maker reported a net profit of Rs 1.26 crore in the September quarter of FY27, marking a sharp turnaround from a net loss of Rs 154 crore in the year-ago period (Q2FY26).

Ather Energy shares surged to an intraday high of Rs 1,643.85 apiece on the BSE following the announcement of its Q2FY27 results.

The stock pared some of the gains to settle at Rs 1,574, up 13.74% from the previous close.

The company's return to profitability was supported by strong revenue growth and an improvement in operating performance.

According to Ather Energy's exchange filing, revenue from operations rose 62.8% year-on-year (YoY) to Rs 1,464 crore in Q2FY27, compared with Rs 899 crore in the corresponding quarter last year.

The electric vehicle maker also reported a turnaround at the operating level, with earnings before interest, taxes, depreciation and amortisation (EBITDA) turning positive at Rs 11.3 crore, against an EBITDA loss of Rs 133 crore a year earlier. The EBITDA margin stood at 0.77%.

Ather Energy's consolidated Adjusted Gross Margin (AGM) improved by 160 basis points (bps) YoY to 24% during the quarter, despite elevated input costs for aluminium, copper, lithium and crude-linked plastics.

The company attributed the improvement to a favourable product mix, pricing decisions and other measures, which helped support margins despite continued pressure from commodity costs.

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Ather Energy approves capacity expansion

Separately, Ather Energy's board on October 26 approved capital expenditure of approximately Rs 122 crore, including taxes, to expand manufacturing capacity at its Hosur facility in Tamil Nadu and its upcoming Factory 3.0 in Chhatrapati Sambhajinagar, Maharashtra.

"we wish to inform you that the Board at the meeting held today, i.e., October 26, 2026, has considered and approved proposals for the enhancement of manufacturing capacity at the Company’s factories located at Hosur, Tamil Nadu and Chhatrapati Sambhajinagar, Maharashtra (Factory 3.0- under construction). Capital Expenditure (CAPEX) of approximately Rs 122 Crore (including taxes) has been earmarked for the said expansion," said Ather Energy.

The proposed investment will increase the annual production capacity of electric two-wheelers at the Hosur facility from 420,000 units to 495,000 units. At Factory 3.0, which is under construction, planned annual production capacity will rise from 500,000 units to 650,000 units.

Management commentary

Commenting on the quarterly performance, Tarun Mehta, co-founder and CEO of Ather Energy, said the company delivered strong revenue growth and a positive bottom line despite surging commodity prices and supply chain disruptions.

“We delivered a strong quarter, with robust topline growth and a positive bottomline, despite surging commodity prices and supply chain disruptions. Underpinning this is a shift to electric two-wheelers that is now structural and playing out across India. At Ather, demand has more than doubled year-on-year this quarter, and to meet it, we are further augmenting our production capacity at Hosur and AURIC. With Konarc taking Ather to a wider set of customers, we see significant headroom for growth ahead,” Mehta said.

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