Ola Electric rival Ather Energy’s loss narrows as revenue jumps 50% to Rs 954 crore in Q3 FY26

Ola Electric rival Ather Energy reported its highest quarterly revenue and vehicle sales so far in the December 2025 quarter. The company recorded higher revenue, improved market share, and lower losses compared to the same period last year, according to its regulatory disclosures.

For the third quarter of FY26, the Bengaluru-based electric two-wheeler maker reported revenue from operations of Rs 954 crore, up about 50% year-on-year from Rs 635 crore in Q3 FY25, according to its quarterly disclosure to the National Stock Exchange (NSE).

Total income for the quarter stood at Rs 995.7 crore, a 53% increase year-on-year, supported by strong vehicle volumes and a rising contribution from non-vehicle revenue streams such as software subscriptions, charging services, accessories, spares and service. These non-vehicle streams accounted for about 14% of revenue during the quarter.

Ather sold 67,851 vehicles in Q3 FY26 and captured a pan-India electric two-wheeler market share of 18.8%.

Over the nine months ended December 2025, the company sold 1,79,525 vehicles and reported cumulative revenue from operations of Rs 2,497 crore, compared with Rs 1,579 crore in the corresponding period a year earlier.

Improving scale and unit economics led to a sharp expansion in margins. Adjusted Gross Margin (AGM) rose 111% year-on-year to Rs 251.3 crore in Q3 FY26. AGM excluding incentives improved to 23%, an expansion of about 1,100 basis points year-on-year, driven by value engineering, pricing discipline and a richer product mix.

EBITDA margin improved by about 1,600 basis points year-on-year to (-3%). EBITDA loss narrowed to Rs 29.9 crore, while overall losses declined 57% year-on-year to Rs 85 crore in Q3 FY26 from Rs 198 crore in Q3 FY25.

On the cost side, material costs, largely battery packs and components, accounted for about 69% of total costs and stood at Rs 744 crore during the quarter. Employee benefit expenses rose 14% year-on-year to Rs 122 crore. Depreciation, amortisation, advertising, legal and other overheads pushed total expenses to Rs 1,075 crore in Q3 FY26, up from Rs 848 crore a year earlier. The increase in scale, coupled with tighter cost controls, contributed to the sharp reduction in losses.

Ather’s market position strengthened across regions during the quarter. South India remained its strongest market, where it retained leadership with a 24.4% share, supported by deep penetration and an established retail footprint. Middle India saw its market share nearly double to 17.4% from 8.8% in Q3 FY25, driven by growth in Gujarat, Maharashtra, Madhya Pradesh and Odisha.

In the rest of India, market share increased to 12.6%, reflecting steady gains in northern and emerging markets. During the festive period, the company recorded its highest-ever monthly registrations of about 30,900 units, translating to a 20% market share.

Network expansion continued in line with this growth. Ather added 76 new Experience Centres during Q3, taking its total to 600 across the country. South India accounted for 261 centres, followed by Middle India with 202 and the rest of India with 137.

The company also continued to build out its ecosystem-led model. Around 91% of customers opted for AtherStack Pro, its paid software offering, as usage of connected features related to safety, navigation and convenience increased. The Ather Grid charging network expanded to 4,357 fast-charging points and neighbourhood chargers across India, Nepal and Sri Lanka.

Tarun Mehta, Executive Director and CEO of Ather Energy, said, “Q3 has been a strong quarter for us. Robust festive demand, healthy volume growth, and improving market share together drove our best quarterly revenue and EBITDA so far. Over the past few quarters, we have stayed very focused on getting the fundamentals right by improving unit economics, margins, and operating leverage, and that effort is now clearly showing in the improvement in EBITDA. What is particularly encouraging is the strength of our ecosystem. AtherStack attach rates remain very high, and customer engagement is deepening even as our sales scale. All of this gives us confidence that the business is structurally prepared for sustainable, long-term growth.”

Separately, Ather recently incorporated a wholly owned subsidiary to enter the auto insurance segment as a corporate agent, according to an NSE filing.

In November, the National Investment and Infrastructure Fund (NIIF) sold 49% of its holding in one of its Ather-linked vehicles, representing about 2.28% of Ather Energy’s total paid-up capital, through open market transactions worth Rs 541 crore.

According to Vahan data, Ather retained its third position in the electric two-wheeler market in December, with registrations of 16,391 units, down 20% month-on-month from November, and a market share of 17.62%.

The company had earlier overtaken Ola Electric in revenue in Q2 FY26, and its performance in Q3 further underscored improving scale and financial traction ahead of the broader sector’s upcoming earnings announcements.