New Delhi: Ather Energy (ATHERENERG), one of India’s leading electric two-wheeler manufacturers, delivered its strongest-ever quarter performance, with robust growth in market share and revenue alongside a sharp narrowing of EBITDA losses. The performance was driven by geographic expansion, portfolio depth, and non-vehicle revenue led by software offerings. During the quarter, the company sold 67,851 units, captured a national market share of 18.8%, and improved EBITDA margin by ~1,600 basis points (bps) year-on-year (YoY) to (-3%), reflecting strong operating leverage, disciplined cost management, and continued investments in research and development (R&D).
Key Financial Highlights
For the quarter ended December 2025, Ather Energy reported total income of ₹995.7 crore, up 53% YoY, driven by robust volume growth and a rising contribution of non-vehicle revenue, including software subscriptions, charging, accessories, spares, and service, which rose to 14% of revenue.
This strong revenue growth was accompanied by a sharp increase in margins. Adjusted Gross Margin (AGM) reached ₹251.3 crore in Q3 FY26, up 111% YoY, while AGM excluding incentives improved to 23%, up ~1,100 bps YoY. This was driven by Ather’s value engineering capabilities and the ability to command strong premiums, reflecting a continued focus on healthier unit economics and structurally stronger margins.
EBITDA margin narrowed significantly to (-3%), driven by better unit economics, disciplined cost management, and operating leverage as volumes scaled. Losses continued to shrink, with EBITDA loss down to ₹29.9 crore, and the quarterly loss narrowing by 45% compared to Q2 FY26, underscoring steady progress toward profitable, sustainable growth. This improvement was driven by structural levers built over the past year, now translating into strong operating leverage and positioning the business to navigate near-term margin volatility.
Market Share Highlights
Ather Energy’s market share continued to strengthen in India’s electric two-wheeler market in Q3 FY26, with a pan-India market share of 18.8%. The festive period delivered a strong boost, with Ather recording its highest-ever monthly registrations of 30.9k units, translating to a 20% market share, highlighting robust consumer demand and growing brand preference.
South India remained Ather’s strongest region, retaining leadership with a 24.4% market share, backed by deep market penetration, solid brand recall, and a well-established retail network. Middle India continued its upward trajectory, with market share almost doubling to 17.4% from 8.8% in Q3 FY25. This was driven by strong performance across Gujarat, Madhya Pradesh, Maharashtra, and Odisha, with Odisha almost doubling its market share over the last two quarters. In the Rest of India, market share rose to 12.6%, reflecting steady growth across northern and emerging markets.
Operational Expansion and Ecosystem Growth
Building on the momentum from previous quarters, Ather added 76 new Experience Centres (ECs) in Q3, taking its national network to 600 ECs. South India continued to have the deepest presence with 261 ECs, followed by Middle India with 202 ECs and the Rest of India with 137 ECs, supporting sustained growth and market share expansion across regions.
The company continued to strengthen its ecosystem-led business model during the quarter. Adoption of AtherStack Pro remained strong, with 91% of customers opting for it, alongside growing usage of software-led features focused on safety, convenience, and navigation. Charging infrastructure also expanded steadily, with the Ather Grid network expanding to 4,357 fast-charging points and neighbourhood chargers across India, Nepal, and Sri Lanka.
Tarun Mehta, Executive Director & CEO, Ather Energy, said, “Q3 has been a strong quarter for us. Robust festive demand, healthy volume growth, and improving market share together drove our best quarterly revenue and EBITDA so far. Over the past few quarters, we have stayed very focused on getting the fundamentals right by improving unit economics, margins, and operating leverage, and that effort is now clearly showing in the improvement in EBITDA. What is particularly encouraging is the strength of our ecosystem. AtherStack attach rates remain very high, and customer engagement is deepening even as our sales scale. All of this gives us confidence that the business is structurally prepared for sustainable, long-term growth.”
