Ather Energy Q2 FY27 Results (NSE: ATHERENERG)
Signal: Loss reversed
The read
The trajectory has inflected from losses to breakeven: consolidated EBITDA improved from an estimated ₹(132.55) crore YoY and ₹(33.28) crore QoQ to ₹11.46 crore, while gross margin expanded 786bps YoY to 20.8%; the key confirmation still needed is whether the margin gain persists as capacity investment drives CWIP to ₹471.69 crore and H1 operating cash flow remains ₹(520.26) crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,464.24 Cr | +62.9% | +20.3% |
| Net profit | ₹1.26 Cr | N/A | |
| EPS | ₹0.03 | N/A | |
| EBIT margin | 0.8% |
P&L walk
Revenue accelerated to ₹1,464.24 crore, +62.9% YoY and +20.3% QoQ, while gross margin expanded 786bps YoY to 20.8% and EBITDA moved to ₹11.46 crore from an estimated ₹(132.55) crore loss in the year-ago quarter; PAT consequently turned positive at ₹1.26 crore.
Segments
The Group remains a single automotive operating segment, and the near-identical consolidated PAT of ₹1.26 crore versus standalone PAT of ₹1.50 crore confirms that the newly incorporated subsidiaries are not yet materially affecting earnings.
Key positives
- Revenue reached ₹1,464.24 crore, +62.9% YoY and +20.3% QoQ, maintaining rapid scale-up.
- Gross margin expanded 786bps YoY to 20.8% as raw material cost fell to 80.4% of revenue from 81.9% YoY.
- Consolidated EBITDA turned positive at an estimated ₹11.46 crore, or 0.8% margin, versus an estimated ₹(132.55) crore loss YoY and ₹(33.28) crore loss QoQ.
- Employee benefits plus other expenses fell 2.8% YoY to ₹292.73 crore despite 62.9% revenue growth.
- PPE and CWIP rose to ₹337.62 crore and ₹471.69 crore respectively, indicating that capacity expansion is progressing.
Key concerns
- H1 operating cash flow remained negative at ₹(520.26) crore despite the quarterly move to ₹1.26 crore consolidated PAT.
- Net debt excluding lease liabilities increased to ₹456.15 crore from ₹401.13 crore as at March 31, 2026.
- The filing does not disclose volumes, ASP or the reason for the 786bps gross-margin expansion, leaving the durability of the improvement unverified.
Research and educational content only. Not investment advice.