Ather Energy announced significant capacity expansion plans, aiming to reach 77,000 units per month. This move addresses supply constraints and supports the launch and growth of its new Konarc scooter. The company also reported strong Q2 FY27 results with 42% wholesale volume growth and positive EBITDA, highlighting broad-based growth across all zones and increased EV penetration.
Ather Energy Boosts Manufacturing Capacity to Meet Demand
Ather Energy is undertaking a substantial capacity expansion, with plans to increase its monthly production capability to 77,000 units. This strategic move is driven by strong demand, particularly for its new Konarc scooter, and aims to resolve existing supply constraints. The company has secured board approval for enhancements to its Hosur facility and the AURIC Phase 1 plant.
Capacity Expansion Details
The Hosur plant will see an immediate incremental capacity increase of 6,000 units per month this quarter. AURIC Phase 1 is slated to add an incremental 12,000 units per month by Q2 FY28, bringing the total installed capacity to 11.4 lakh units by that time. This expansion is crucial to support the anticipated volume growth from Konarc and other models.
Strong Q2 FY27 Performance
In its Q2 FY27 results, Ather Energy reported robust performance with 42% year-on-year wholesale volume growth, reaching 93,000 units. Industry E2W penetration crossed 10%, with Ather seeing significant growth in inquiries and preorders. The company also achieved its first-ever positive PAT and registered EBITDA at approximately 0.8%, demonstrating improved operational leverage.
Konarc Launch and Market Strategy
The recent launch of the Konarc scooter is a key focus, designed to attract a broader market segment. Ather is implementing a phased geographical rollout for Konarc, prioritizing northern markets first, followed by other regions. The company is also focused on optimizing its product portfolio and pricing strategy, with plans to leverage Konarc’s favorable unit economics to potentially reduce average ex-showroom prices without sacrificing margins.
Financial Highlights and Outlook
Despite commodity price volatility, Ather Energy achieved a 5.3% improvement in gross margin over the last two quarters, driven by structural price hikes and cost reductions. The company is confident that its capacity expansion, coupled with strong product offerings, will enable continued growth and provide sufficient headroom for the next few years.
Source: BSE
