Ather Energy Posts ₹1.26 Cr Profit and Plans Major Capacity Expansion

Electric two-wheeler manufacturer Ather Energy reported a profit after tax of ₹1.26 crore for the September quarter of the fiscal year 2026-27. The company also revealed its board has approved a significant capacity expansion plan that will increase its annual production by an additional 225,000 units by the second quarter of FY28 (July-September 2027).

This announcement was made public through an official exchange filing on October 26, 2026. Ather Energy plans to raise the manufacturing capacity at its Hosur plant from 420,000 units to 495,000 units per year. Additionally, the upcoming Factory 3.0 in Chhatrapati Sambhajinagar, which is still under construction, will see its planned capacity increased from 500,000 units to 650,000 units annually.

Once these expansions are completed, Ather's total installed production capacity across both plants will reach approximately 1.14 million units per year. The company has allocated ₹122 crore for this project, with ₹58 crore earmarked for the Hosur facility upgrade and up to ₹64 crore directed towards completing Factory 3.0.

Funding for this capital expenditure will come from a mix of debt and internal cash reserves. Currently, the Hosur plant operates at a peak capacity utilization rate of 98 percent, indicating strong demand and near-full production efficiency. The expansion is expected to address supply constraints and support future growth.

A significant portion of the Hosur investment, around ₹53 crore, will be used to establish a new battery production line. This move aims to mitigate supply chain risks and better match the company’s growing demand requirements, especially as electric vehicle markets continue to expand across India and globally.

In terms of financial performance, Ather Energy's revenue from operations surged 63 percent year-over-year to ₹1,464.2 crore during the second quarter of FY27, compared to ₹898.9 crore in the same period the previous year. The company also sold 93,000 vehicles, marking a 44 percent increase from 66,000 units sold in the corresponding quarter of the prior year.

With these sales figures, Ather has secured a 15.1 percent share of the electric two-wheeler market, reflecting its growing presence in the sector. The company’s focus on expanding production capacity aligns with trends in the electric vehicle industry, where increasing consumer adoption and government policies promoting clean energy vehicles have created robust demand.

Ather Energy’s strategy to enlarge its manufacturing footprint comes at a time when many automakers in India and worldwide are ramping up EV production to meet stricter emissions regulations and shifting consumer preferences. The company’s investment also underscores the importance of battery technology and supply chain security in maintaining competitive advantage in the electric mobility space.

As the electric vehicle market continues to evolve, companies like Ather Energy are positioning themselves to capture larger market shares by enhancing production capabilities and ensuring timely delivery of products. The expansion plans announced will likely support Ather’s growth trajectory over the next several years, enabling the company to meet increasing demand and improve operational efficiencies.

With these developments, Ather Energy remains a key player in India’s electric two-wheeler segment, contributing to the country’s broader goals of sustainable transportation and reduced carbon emissions.