Ather Energy Q2 Results: Stock jumps 17% after turning profitable; Volumes aid topline gowth

Shares of electric two-wheeler manufacturer Ather Energy Ltd.

surged as much as 17% on Monday, October 26, after the company turned positive on the Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) front and the Net Profit front as well.

Ather Energy reported a net profit of ₹1.26 crore compared to a net loss of ₹154 crore during the same period last year. EBITDA during the quarter was also a positive ₹11.3 crore, compared to an EBITDA loss of ₹133 crore in the base quarter.

The company managed to post an EBITDA margin of 0.77% as well during the quarter.

Revenue during the quarter increased by 62.8% to ₹1,464 crore from ₹899 crore during the year-ago period. Revenue growth was aided by a 42% jump in volumes during the quarter to 93,000 units.

Apart from the numbers, Ather Energy's board has approved capacity expansion of the factories located at Hosur in Tamil Nadu and Chhaatrapati Sambhajinagar to scale-up long-term manufacturing output and meet business demand.

Ather will be investing ₹58 crore for expanding the Hosur unit and ₹64 crore for the Chhatrapati Sambhajinagar unit, which will add 75,000 units par annum to the former and 1.5 lakh units per annum to the latter.

Hosur Unit's capacity expansion will be completed by December 2026, while for Chhatrapati Sambhajinagar, the capacity addition will be completed by the second quarter of financial year 2028.

Capex for this capacity expansion will be funded via a mix of debt and internal accruals. The Hosur unit expansion capex also includes a ₹53 crore investment in a new battery line to cater to demand scenarios and de-risk supply chain. This will be completed by the third quarter of financial year 2028.

Shares of Ather Energy are currently trading 17% higher at ₹1,613 after the results announcement. The stock, before today's session, had corrected 20% from its record high level of ₹1,744.