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Ather Energy Shares Surge 10% After First Quarterly Profit of Rs 1.26 Crore
Sentiment: PositiveHigh Priority
What Happened?
Ather Energy reported its first quarterly profit of Rs 1.26 crore for Q2 FY27, driven by a 62.9% revenue increase to Rs 1,464.24 crore. The company's shares rose 10% following the announcement.
Key points
- Ather's revenue rose 62.9% year-on-year to Rs 1,464.24 crore.
- Vehicle sales increased by 42%, totaling around 93,000 units.
- EBITDA turned positive at Rs 74.17 crore, improving from a loss of Rs 90.76 crore.
- Demand for electric scooters outpaced production capacity, with 98% utilization at the Hosur plant.
- Ather plans to expand production capacity by 75,000 units at its Hosur facility and 1.5 lakh units at its Chhatrapati Sambhajinagar plant.
Key insights
- The rise in demand may lead to increased production challenges for Ather.
- Ather's expansion plans could position it better in the competitive electric scooter market.
- Higher input costs remain a concern, potentially affecting future pricing strategies.
Market Impact
electric vehicles
PositiveAther's profitability and revenue growth may positively influence the electric vehicle sector's market dynamics.
Why it matters
Ather's profitability could enhance investor confidence and support further expansion in the electric vehicle market.
Tags
Entities
Ather Energy· CompanyTamil Nadu· StateMaharashtra· StateIndia· Country
Source
India Today
