Ather Energy Ltd's Q2 FY27 numbers came in strong. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 26, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 1,464.24 Cr (+62.90% YoY) |
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| PAT (Q2) | Rs. 1.26 Cr |
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| EBITDA margin | 4.86% (+1451 bps YoY) |
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| EPS (Q2) | Rs. 0.03 |
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| Market cap | Rs. 55,322.31 Cr |
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| CMP | Rs. 1,394.50 |
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Quarter Snapshot
Ather delivered its first positive PAT (Rs.1.26 crore) with EBITDA positive on both definitional bases for a second straight quarter, as revenue grew 62.9% YoY to Rs.1,464.24 crore and fixed costs fell from 32.03% to 19.17% of total income. The balance sheet was transformed via a Rs.1,300 crore QIP and warrant/preferential raises, leaving Rs.2,200.42 crore net cash ahead of the Hosur (+75k units, Dec 2026) and Factory 3.0 (+150k units, Q2 FY28) capacity ramps. Watch items are negative H1 operating cash flow from inventory build and capex, and the unquantified Battery Waste Management Rules contingency.
Key Investment Insights
Key Positives
- Revenue grew 62.9% YoY and 20.3% QoQ to Rs.1,464.24 crore, the largest quarter in company history
- PAT turned positive at Rs.1.26 crore vs a loss of Rs.154.07 crore a year ago
- EBITDA (company definition) of Rs.74.17 crore at 4.86% margin vs -9.65% a year ago; generic-basis EBITDA positive for the first time at Rs.11.46 crore
- Employee+other costs fell from 32.03% to 19.17% of total income YoY; other expenses declined 8.2% YoY
- Net cash of Rs.2,200.42 crore after Rs.1,300 crore QIP at Rs.1,202/share, Rs.200 crore preferential equity and Rs.1,000 crore warrants (Rs.250 crore received)
- Board approved Hosur +75,000 units p.a. (≤Rs.58 crore, Dec 2026) and Factory 3.0 +150,000 units p.a. (≤Rs.64 crore, Q2 FY28)
- AGM improved to 24.03% (+163 bps QoQ, +164 bps YoY) despite commodity inflation
- Hosur capacity utilization at 98% at peak production
Risk Factors
- H1 operating cash flow was negative at Rs.(40.05) crore with FCF of Rs.(560.31) crore after Rs.520.26 crore capex
- Inventory build of Rs.121.19 crore in H1; change in inventories of (65.50) flattered Q2 PBT via goods capitalized into stock
- Other income of Rs.62.71 crore (4.1% of total income) is partly treasury-flavored and exceeds PAT of Rs.1.26 crore
- Battery Waste Management Rules, 2022 impact cannot be reliably estimated by the company — open unquantified contingency
- Finance costs rose 25.3% YoY to Rs.26.04 crore tracking borrowings build-out to Rs.820.95 crore