Bengaluru, India — Ather Energy, a prominent electric vehicle manufacturer, has reported an unprecedented surge in demand for its electric scooters, with paid pre-orders skyrocketing 158% year-on-year in the first quarter of fiscal year 2027. Despite this robust demand, the company's CEO, Tarun Mehta, revealed that production limitations prevented them from selling an additional 13,000 to 15,000 scooters each month.
The overwhelming interest has led to extended waiting periods of two months or more, prompting dealers in several states to temporarily stop accepting new pre-orders. Mehta highlighted these challenges during the company's Q1 FY27 earnings call, noting that the upcoming launch of their mass-market 'EL' scooter platform is expected to further intensify demand.
Demand Outpaces Production Capacity
In Q1 FY27, Ather Energy recorded 1.5 lakh paid pre-orders, marking a significant 158% increase compared to the previous year. Concurrently, EV registrations for Ather models saw a 102% jump, rising from 44,900 units in Q1 FY26 to over 90,000 units in Q1 FY27. This rapid growth has pushed Ather's existing manufacturing plant in Hosur, Tamil Nadu, to nearly 100% capacity utilization.
To address these supply constraints, Ather Energy is actively expanding its manufacturing capabilities. A new plant at AURIC in Aurangabad, Maharashtra, is slated to boost annual capacity from 4.2 lakh units to an ambitious 9.2 lakh units by Q1 FY28. This expansion is crucial for meeting the escalating market appetite for electric two-wheelers.
Strategic Product Launch and Market Factors
Ather Energy is set to unveil its first mass-market electric scooter, built on the 'EL' platform, at the Ather Community Day on August 29. This strategic launch aims to tap into a broader consumer base and capitalize on the growing shift towards electric mobility.
Mehta attributed the strong consumer pivot to EVs to several factors, including increasing concerns over the accessibility and availability of fossil fuels. He also emphasized the compelling total cost of ownership (TCO) advantage offered by electric vehicles, which, coupled with E20 fuel concerns, encourages consumers to invest in EVs despite a slightly higher upfront cost.
Strong Financial Performance
The first quarter of FY27 marked a significant financial milestone for Ather Energy, as the company reported its first-ever quarter of positive EBITDA. Consolidated EBITDA reached ₹9 crore, a substantial improvement from an EBITDA loss of ₹106 crore in Q1 FY26, with the EBITDA margin improving to 0.8%.
The company's consolidated net loss narrowed significantly to ₹51 crore, down from ₹178 crore a year prior. Total consolidated income for the quarter ended June 2026 stood at ₹1,260 crore, an 87.2% year-on-year increase, driven by robust volume growth, strategic pricing, and a growing contribution from non-vehicle revenue streams.