Indian electric scooter maker Ather Energy reported its first quarterly profit on Monday, sending its shares up 10%. The Rizta scooter maker posted a second-quarter net profit of 15 million rupees ($157,546.48), compared with a loss of 1.54 billion rupees a year earlier.
Revenue rose 62.9% to 14.64 billion rupees in the quarter through September 30, the company said. Ather’s margin expansion was mostly driven by its product mix and pricing decisions despite a high input-cost environment.
Ather plans to add annual capacity of 75,000 units at its Hosur, Tamil Nadu, plant in December and 150,000 units at its Chhatrapati Sambhajinagar, Maharashtra, plant in the second quarter of fiscal 2028.
The Hosur expansion includes a Rs 530 million investment in a new battery line to diversify the company’s supply chain.
Ather, along with other Indian automakers, faces high raw material costs due to Middle East war-driven supply chain disruptions.
High fuel prices and concerns over India’s nationwide rollout of E20 petrol, which contains 20% ethanol, have supported adoption of EVs, including Ather‘s scooters.
Demand outpaced available production capacity, with Hosur operating at 98% capacity utilisation, Ather said.
The company launched its new Konarc scooter this quarter, featuring a platform that is easier to scale up and more efficient to manufacture.
Reuters
