Ather Energy has approved a ₹122 crore investment to add 225,000 units of annual electric two-wheeler production capacity at its Hosur and Chhatrapati Sambhajinagar plants by the July-September quarter of 2027-28, as the company reported a quarterly profit after tax of ₹1.26 crore.
The expansion will take Ather’s total installed annual capacity to approximately 1.14 million units by Q2FY28. The company said in an exchange filing that annual capacity at its Hosur facility will rise to 495,000 units from 420,000 units, while the planned capacity at Factory 3.0 in Chhatrapati Sambhajinagar will increase to 650,000 units from 500,000 units.
Ather has allocated ₹58 crore for the Hosur expansion and up to ₹64 crore for Factory 3.0. The investments will be funded through a combination of debt and internal accruals, according to the company. Factory 3.0 is currently under construction.
The Hosur investment includes ₹53 crore for a new battery line. Ather said the line would address demand scenarios and reduce supply-chain risk. The company reported that existing capacity utilisation at Hosur reached 98 per cent at peak production, indicating limited headroom at the facility during periods of high output.
The planned additions expand capacity at both an operating plant and a facility still being built. Hosur, in Tamil Nadu, will receive a relatively smaller increase of 75,000 units a year, while Factory 3.0’s planned annual output will rise by 150,000 units. Together, the additions represent a 225,000-unit increase over the previously planned capacity.
Ather’s operating performance also strengthened in the September quarter. Revenue from operations rose 63 per cent year-on-year to ₹1,464.2 crore from ₹898.9 crore in the year-ago period. Vehicle sales increased 44 per cent to 93,000 units from 66,000 units, while the company reported a 15.1 per cent market share in the electric two-wheeler segment.
The capacity decision links Ather’s manufacturing plans to the expansion of electric two-wheeler demand in India. For cities, production capacity is relevant not only to vehicle availability but also to the supporting ecosystem of batteries, servicing, charging and component supply. The company’s planned battery-line investment specifically places supply continuity within its manufacturing expansion programme.
The next major milestone is the completion of the approved capacity additions by Q2FY28. Factory 3.0 remains under construction, while the Hosur investment will include the new battery line. Ather’s stated plan is to bring the combined installed annual capacity of its plants to approximately 1.14 million units by that quarter.
