Bengaluru electric two-wheeler maker Ather Energy swung to a consolidated net profit of Rs 1.26 crore in the second quarter of FY27, the quarter ended 30 September 2026, reversing a net loss of Rs 154.07 crore in the same quarter last year. The results, approved by the board on 26 October 2026, mark a hard-won turnaround for one of India's best-known EV startups.

The numbers behind the turnaround

Revenue from operations rose 62.9 per cent year on year to Rs 1,464.24 crore, from Rs 898.88 crore a year earlier, while total income reached Rs 1,526.95 crore. Ather sold 93,211 electric two-wheelers in the quarter, up 42 per cent year on year. The profit is thin, and it is worth reading honestly: Inc42 notes other income of Rs 62.7 crore was crucial to the bottom line, with operating revenue still below total expenses for the quarter. The quarter before, in Q1 FY27, Ather had posted a net loss of Rs 51.09 crore.

Costs are still biting

Co-founder and chief executive Tarun Mehta told the earnings call that commodity price surges and chip shortages proved worse than expected a quarter ago, with raw material costs surging to Rs 1,176.57 crore. Price increases and a shift towards higher-range models helped offset that pressure, lifting the average ex-showroom price to about Rs 164,000 in the quarter from roughly Rs 150,000 in FY26.

What comes next

Alongside the results, the board approved capital expenditure of about Rs 122 crore to expand manufacturing: Hosur capacity rises by 75,000 units a year to 4.95 lakh units by December 2026, and the upcoming Factory 3.0 in Chhatrapati Sambhajinagar gains 150,000 units a year to 6.5 lakh units by Q2 FY28, taking combined capacity to about 11.4 lakh units a year. Investors reacted fast: the stock touched an intraday high of Rs 1,643.85 on the BSE and settled at Rs 1,574, up 13.74 per cent.

Why it matters for founders

Ather's quarter shows what a turnaround actually looks like: not one heroic number, but revenue growing faster than expenses, a richer product mix, and capacity added only once demand justifies it. For founders in capital-heavy hardware, the lesson is to fund the factory after the order book, not before it — and to be honest about how much of a first profit comes from other income.