Electric two-wheeler manufacturer Ather Energy has introduced allocation controls in select markets after capacity utilisation at its Hosur factory crossed 90 per cent, following a 69 per cent year-on-year volume expansion in fiscal year 2026.
CEO Tarun Mehta announced the measures alongside the company’s annual financial results for the year ended March 31, 2026, which showed revenue from operations rising 66 per cent to ₹3,671 crore and net losses narrowing by 36 per cent to ₹517 crore from ₹812 crore in FY25. The company also reported positive operating cash flow for the first time, supported by a record fourth quarter volume of 83,418 units.
To address the capacity constraints, the company is relying on Factory 3.0, a new greenfield plant in Chhatrapati Sambhajinagar. Phase 1 of the facility, designed for a monthly capacity of 42,000 units, is scheduled to become operational by March 2027.
On June 12, 2026, Ather’s board approved a fresh capital raise to fund the expansion.
The performance indicates an operational shift from April 2025, when Ather launched its Initial Public Offering (IPO). At the time of listing, the Hosur plant was operating at approximately 30 per cent of its 4.2 lakh-unit annual capacity, FY24 revenue had declined, and losses were widening. The IPO was subscribed 1.43 times and listed at a 44 per cent discount to its initial valuation target.
Following the recent financial results, Ather shares were trading at approximately ₹1,009 on June 12, compared to an IPO price of ₹321. Company leadership attributed the FY26 volume growth primarily to the Rizta, a family-oriented scooter designed to expand Ather’s consumer base beyond its traditional premium segment. Driven by this launch, the company’s market share in “Middle India” rose to 17.3 per cent in Q4 FY26 from 4 per cent in FY25, while its full-year national market share reached 18.6 per cent. Adjusted gross margins also improved by 500 basis points to 24 per cent over the fiscal year.