·  Loss narrows to Rs 178.2 crore in Q1 FY26 from Rs 344 crore YoY.

·  Revenue surges 79% to Rs 293.6 crore, indicating strong sales growth.

·  EV adoption gains pace, boosting Ather's market momentum amid Ola rivalry.

Ather Energy, the Bengaluru EV firm and rival to Ola Electric, has posted robust performance in the first quarter of FY26 as it led the pack with strong vehicle sales and expanding non-vehicle revenue streams.

The firm recorded a collective income of Rs 672.9 crore, an 83% year-over-year increase, driven significantly by the success of its just-released Rizta scooter and a strongly growing retail network. Revenue from operations increased 79% YoY to Rs 644.6 crore, as compared to Rs 360.5 crore in Q1 FY25.

Ather retailed 46,078 electric scooters in the quarter ended June 30, with a 97% rise in volume from the previous year. The April 2024-launched family-oriented Rizta, a utilitarian alternative to the performance-centric 450 series, was instrumental in broadening the brand's appeal beyond urban buyers.

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The adjusted gross margin of the company was Rs 154.8 crore, which is 117% higher than last year's. On an ex-subsidy basis, gross margin rose to 20%, an improvement of 700 basis points on account of a premium product mix, value-engineered R&D expenses, and favorable battery input costs.

EBITDA margin skewed significantly higher by 1,700 basis points compared to the previous year, lowering EBITDA loss to Rs 106 crore. While total expenses increased 54.3% (Rs 851.1 crore), Ather's net loss decreased to Rs 178.2 crore, from Rs 182.9 crore during the same quarter last year. Employee benefit expenditure increased by 37% YoY to Rs 118.6 crore.

Non-vehicle revenues like software, services, and accessories accounted for 12% of the overall income a higher-margin vertical that is continuously scaling. The company's suite of software, AtherStack Pro, witnessed robust demand, indicating increased demand for technology-enabled riding experiences.

Retail expansion remained strong, with 95 new Experience Centres (ECs) opened in Q1 FY26, after 86 in the prior quarter. Ather now has 446 ECs in India across various retail formats serving different city tiers. The Ather Grid fast-charging network also expanded to 4,032 points in India, Nepal, and Sri Lanka.

CEO and Executive Director Tarun Mehta said, "We've made a phenomenal beginning to FY26, driven by Rizta's success and robust growth in our retail chain. We were No. 1 in South India this quarter, and our faster-than-expected development in Middle India has exceeded expectations. Northern growth is our next priority."

He also highlighted margin expansion at the company and flat ASPs (average selling prices), demonstrating a comfortable balance of growth, profitability, and market share.

Ather's domestic market share increased to 14.3% in Q1 FY26 from 7.6% a year ago. In South India, it had a leading 22.8% share, while in Middle India, its share increased 2.6x YoY to 10.7%.

The firm listed on the stock market in May 2025, the first FY26 mainboard listing. Its IPO at Rs 321 per share raised Rs 2,981 crore, of which Rs 1,340 crore came in from anchor investors.

As of July, Ather commanded a 16.3% market share in the electric two-wheeler space, slightly behind Ola Electric's 17.9%, data from Vahan portal showed.