Ather reports ₹1.26 cr profit in Sep qtr, plans to further boost capacity

Ather Energy has reported a profit of ₹1.26 crore for the September quarter, a turnaround after previous losses. The company is now focusing on expanding its manufacturing capabilities to meet growing demand for its electric scooters. To support this growth, Ather plans to add 225,000 units of annual production capacity by the second quarter of FY28. This expansion will be funded by an investment of ₹122 crore across its existing facilities in Hosur and Chhatrapati Sambhajinagar.

This move signals Ather's confidence in the electric two-wheeler market. Increasing production capacity is crucial for scaling operations and managing supply chain logistics efficiently. For investors, this development highlights the company's strategic shift toward profitability and long-term growth. It suggests that Ather is positioning itself to handle higher sales volumes, which could be a positive indicator for its operational efficiency and market positioning in the future.

Investors should monitor the execution of this expansion plan and the subsequent impact on the company's operational margins. Keeping an eye on the company's ability to ramp up production without incurring excessive costs will be key. Additionally, tracking the uptake of the new capacity and the overall demand for electric scooters will provide further insights into the company's growth trajectory.