Highlighting a key concern for investors, HSBC flags a major risk even as other income supports Ather Energy’s quarterly performance.
Ather Energy reported mixed results for the September quarter, with higher other income helping the electric scooter maker narrow its losses even as expenses remained elevated. The company posted a net loss of ₹1.54 billion in Q2 FY26, compared to ₹1.97 billion a year earlier, while revenue rose 54 percent year-on-year to ₹8.99 billion.
EBITDA loss improved marginally to ₹1.32 billion from ₹1.38 billion last year, with other income jumping to 42 crore rupees from ₹150 million, offsetting part of the operational drag. Total expenses increased 38 percent to 1,095 crore rupees. EBITDA loss on total income narrowed to 90 crore rupees from 1.23 billion a year ago.
Operationally, Ather posted a strong quarter with volumes rising 67 percent year-on-year and 42 percent sequentially. Market share expanded 530 basis points as the company scaled its retail footprint to 524 experience centres and targets 700 by FY26. Ather retained leadership in South India with 25 percent share, while “Middle India” emerged as the fastest-growing region.
Brokerage HSBC maintained a Buy rating with a target price of ₹700, citing improving gross margins and upcoming launches on the EL platform. However, it warned that India’s slow EV adoption remains a key long-term risk.
Regulatory challenges also weighed on results, with China’s ban on heavy rare-earth magnets delaying Ather’s PM E-Drive incentive claims and deferring revenue recognition of ₹19.2 billion.
Ather Energy shares fell 4.68 percent Monday to 624 rupees and have dropped nearly 11 percent over the past week.
