Ather Energy approves ₹122 crore capacity expansion at two plants

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Blacklitt Research26 October 20262 min read

Ather Energy (NSE: ATHERENERG) has approved capacity expansion at its Hosur and Chhatrapati Sambhajinagar factories, with about ₹122 crore of capital expenditure including taxes, it said in a filing on 26 Oct 2026. The expansion adds 75,000 units a year at Hosur and 150,000 units a year at Factory 3.0.

Key highlights

Capital expenditure: approximately ₹122 crore including taxes
Hosur capacity: 420,000 to 495,000 units a year, completion December 2026
Factory 3.0 capacity: 500,000 to 650,000 units a year, completion Q2 FY28
Battery line within Factory 3.0: ₹53 crore, completion by Q3 FY28

The expansion in numbers

Item	Detail
Board approval	26 Oct 2026
Capital expenditure	Approximately ₹122 crore including taxes, earmarked for the expansion
Hosur factory	420,000 to 495,000 units a year; up to ₹58 crore including tax; completion December 2026
Factory 3.0	500,000 to 650,000 units a year; up to ₹64 crore including tax; completion Q2 FY28
Battery line	₹53 crore within the Factory 3.0 investment; completion by Q3 FY28
Hosur utilisation	98% at peak production
Financing	Combination of debt and internal accruals

Two plants, two capacity steps

The Hosur expansion adds 75,000 units a year to a capacity of 420,000 units, an increase of 17.9%. The Factory 3.0 expansion adds 150,000 units a year to 500,000 units, an increase of 30.0%.

At Hosur, existing capacity utilisation is 98% at peak production, according to the company. For Factory 3.0 the plant is still under construction, so no utilisation figure applies yet.

How the spend divides across the two plants

Hosur is listed at up to ₹58 crore including tax and Factory 3.0 at up to ₹64 crore including tax. The two amounts together come to ₹122 crore, but the filing does not say whether the approximate ₹122 crore figure covers both in full.

The battery line is ₹53 crore, or 82.8% of the ₹64 crore Factory 3.0 amount. The company says the line is meant to cater to demand scenarios and to de-risk the supply chain.

What the expansion means for Ather Energy's shareholders

The board has approved added manufacturing capacity at two factories, with capital expenditure of about ₹122 crore. The company says the expansion is meant to scale up long-term manufacturing output to meet business demand, and it will be financed by a combination of debt and internal accruals.

Not stated: how the spend is timed across financial years, how the ₹122 crore splits between the two plants, the expected revenue or margin effect of the added capacity, and how much of the funding comes from debt. The next dated step is the Hosur addition, expected to be completed in December 2026.

Reference: Original filing (PDF)

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