India, Aug. 7 -- About a month ago, Ather Energy's cofounder Tarun Mehta remarked that sales volume alone wouldn't drive profitability, but product innovation would. In hindsight, it seemed like a subtle signal to the market, hinting at a likely decline in electric vehicle sales during the first quarter of FY26.

As per Ather's Q1 FY26 results, the startup saw a 3% sequential decline in the vehicles sold to 46,708 units as against 47,411 in the previous quarter. This impacted the startup's top line, which took a margin hit in comparison to the previous quarter.

In Q1 FY26, Ather Energy's revenue from operations stood at INR 6,446 Cr, 3% hit compared to the previous year. Moreover, Ather's revenue per unit declined by almost 4% on a seque...