Indian electric scooter maker Ather Energy has reported its maiden quarterly profit, a milestone achieved during the second quarter ended September 30. The announcement positively impacted the market, sending the company's shares up by 10 per cent on Monday.
According to the financial results, the maker of the Rizta electric scooter posted a net profit of ₹1.5 crore ($157,546.48) for the July-September quarter. This marks a significant turnaround from the same period a year earlier, when the company recorded a net loss of ₹154 crore.
The shift from losses to profitability was supported by higher sales volumes during the quarter. Ather Energy operates in the competitive Indian electric vehicle market, where companies are working to scale manufacturing capabilities and improve unit economics amid growing consumer adoption of electric two-wheelers.
"Reaching a maiden quarterly profit is a notable milestone for any hardware and manufacturing-heavy startup, especially in the competitive electric vehicle sector. Ather Energy's turnaround from a substantial net loss last year to a positive bottom line indicates that scaling sales volume is beginning to yield operational efficiencies. For the broader Indian startup ecosystem, this demonstrates that sustainable growth and unit economics remain critical benchmarks as companies mature toward profitability." — Dr. Shishir Gupta, Founder & CEO, StartupLanes
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