Ather Energy shares surge after Q2 FY27 profit turnaround and capacity expansion plan

Ather Energy shares rose around 14% to Rs 1,575 on Monday after the electric two-wheeler maker reported a consolidated net profit in Q2 FY27. The move followed a shift from a year-ago loss, giving investors a clearer signal that higher volumes and operating leverage are beginning to show in the company’s numbers.

Ather reported consolidated profit after tax of Rs 1.26 crore for the quarter ended September 2026, compared with a Rs 154 crore loss in Q2 FY26. Consolidated total income rose 62% year-on-year to Rs 1,527 crore, while vehicle volumes increased 42% to 93,211 units. EBITDA stood at Rs 74.2 crore, with EBITDA margin improving to 4.9% from negative 9.6% a year earlier.

The company plans to add 2.25 lakh units of annual production capacity across its Hosur and AURIC facilities. Hosur capacity is set to rise from 4.2 lakh units to 4.95 lakh units by December 2026, while the AURIC facility in Chhatrapati Sambhajinagar is scheduled to begin commercial production in phases from December 2026. Ather expects combined installed annual capacity to reach around 11.4 lakh units by Q2 FY28, supported by an investment of approximately Rs 122 crore.

During the quarter, Ather launched Konarc, its first scooter on the new EL platform, with features including a metal body, adjustable backrest, keyless access and a Bedrock battery backed by a 10-year warranty. CLSA had retained an ‘Outperform’ rating in August with a target price of Rs 1,600, citing volume growth, bookings, capacity expansion and the EL platform launch. For readers tracking the stock, the next signals to watch are whether demand converts into deliveries and whether expanded capacity supports margins without adding execution risk.