Ather Energy, When a company known for dominating South India suddenly pivots to a completely different geography and achieves a 66% market share jump in just one year, you know something remarkable is happening. Ather Energy, the electric scooter maker once synonymous with Bengaluru and Chennai, has just proven that success isn’t about sticking to your comfort zone—it’s about bold expansion into untapped territories.
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The Middle India Phenomenon
Middle India emerged as Ather’s fastest-growing region, with market share skyrocketing to 14.6% in Q2 FY26 from just 8.8% a year ago. This strategic region—comprising Gujarat, Maharashtra, Madhya Pradesh, Chhattisgarh, and Odisha—has become Ather’s secret weapon in challenging rival Ola Electric’s dominance.
What makes this expansion particularly impressive? These five states became Ather’s focus over the past few quarters from distribution, marketing, and all operational perspectives, and the bet is paying off spectacularly.
Breaking Down Ather’s Q2 FY26 Performance
| Metric | Q2 FY26 | Q2 FY25 | Growth |
|---|---|---|---|
| Total Revenue | ₹940.7 Cr | ₹598.7 Cr | 57% YoY |
| Units Sold | 65,595 | 39,000 | 67% YoY |
| Market Share | 17.4% | 12.1% | +5.3 points |
| Experience Centres | 524 | 351 | +173 stores |
| EBITDA Margin | -10% | -21% | 1,100 bps improvement |
The company ended the quarter with a market share of 17.4%, marking steady progress toward profitability.
Regional Dominance: Not Just One-Trick Success
South India Leadership: Ather maintained its number one position in South India with 25% market share in Q2 FY26, up from 19.1% year-on-year, holding this leadership for six consecutive quarters.
Rest of India Growth: The Rest of India recorded strong growth, reaching 10% market share in Q2 FY26 from 6.1% year-on-year, with notable gains in Jammu & Kashmir, Punjab, and Rajasthan.
The Distribution Masterplan
Here’s what most competitors missed: successful EV adoption isn’t just about product quality—it’s about making your scooters visible and accessible. Ather added 173 new Experience Centres in H1 FY26 and 78 new stores during Q2 alone, bringing total retail presence to 524 centres across India.
The company plans to expand its retail network to 700 Experience Centres by the end of FY26, with aggressive expansion in Middle and North India cities including Jabalpur and Mandsaur in Madhya Pradesh.
These format stores (EC2.0 and EC3.0) have allowed very good profitability, creating strong pull from dealers overall. Most dealers achieve store profitability within 3–4 quarters.
The Revenue Story Beyond Vehicles
Non-vehicle revenue, primarily from ecosystem offerings such as software subscriptions, charging, accessories, spares, and service, contributed 12% of total income. This diversification shows Ather isn’t just selling scooters—they’re building a comprehensive EV ecosystem.
Ecosystem Highlights:
- AtherStack 7.0: Rolled out with enhanced riding experience and connectivity features
- AtherStack Pro Adoption: 89% of customers opting for premium software, reinforcing leadership in software-defined EVs
- Ather Grid Network: Expanded to 4,322 fast-charging points across India, Nepal, and Sri Lanka, up from 4,032 in Q1
Why Middle India Matters
CEO Tarun Mehta noted that Madhya Pradesh has seen widespread electric vehicle adoption and is a growing market for the company. These regions were historically underserved by EV manufacturers, presenting significant headroom for growth.
The strategy makes economic sense. While competitors fought bloody battles in saturated metros, Ather quietly built presence in tier-2 and tier-3 cities where EV awareness is growing but competition remains limited.
The Profitability Path
EBITDA margin improved approximately 1,100 basis points year-on-year to -10%, signaling that Ather is rapidly approaching breakeven. Adjusted Gross Margin surged 84% YoY to ₹210.6 crore, translating to a 22% margin—an improvement of around 300 basis points.
This improvement came from value engineering, richer product mix, and increasing contributions from non-vehicle revenues.
What’s Next: The EL Platform Revolution
Ather unveiled its EL platform in August 2025, featuring new vehicle architecture with chassis, powertrain, and electronics stack that reduces assembly time by 15%. The first scooter based on the EL platform will launch during the festive season in 2026.
The platform will support battery packs ranging from 2 kWh to 5 kWh, allowing Ather to address family and commuter segments previously untouched.
The Bigger Victory
Ather overtook Ola Electric in quarterly revenue for Q2 FY26, with government registration data showing Ather’s market share at 20.2% in October against 11.5% for Ola Electric.
This isn’t just about numbers—it’s about vindication. While Ola grabbed headlines with aggressive expansion and pricing, Ather focused on sustainable growth, customer experience, and ecosystem development. The Q2 results prove which strategy works long-term.
The Bottom Line
Ather Energy‘s Middle India strategy demonstrates that in business, timing and geography matter as much as product quality. By identifying underserved markets and building retail presence methodically, Ather has created a growth engine that complements its South Indian stronghold.
With improving margins, expanding retail footprint, and the upcoming EL platform, Ather has positioned itself not just as an EV manufacturer, but as India’s most comprehensive electric mobility ecosystem. The road to profitability looks clearer than ever.
