Ather Energy enters insurance business with new subsidiary
What's the story
Ather Energy, a leading electric two-wheeler manufacturer, has announced its foray into the insurance sector. The company has formed a wholly-owned subsidiary called Ather Insurance Limited. The new entity was registered on Wednesday, and will operate as a corporate agent in the insurance space. The decision to set up this subsidiary was approved by Ather Energy's board on December 19 last year.
Ownership details
Ather Insurance registered with paid-up capital of ₹10 lakh
Ather Insurance has been established as a 100% owned subsidiary of Ather Energy. The company holds complete shareholding and control over the new entity, which was created through cash consideration. The initial paid-up share capital for the subsidiary has been subscribed at a face value of ₹10 per share. Although no specific government or regulatory approvals were needed for incorporation, Ather Energy plans to seek necessary permissions from the Insurance Regulatory and Development Authority of India (IRDAI) before starting operations.
Financials
Ather Energy's net loss narrowed in Q4 FY2026
In the fourth quarter, Ather Energy's net loss narrowed to ₹100 crore from ₹234.4 crore in the same period last year. The company's revenue for the quarter grew by 73.8% year-on-year to ₹1,174.4 crore from ₹676 crore previously. Losses on an Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) basis also halved to ₹70 crore from a loss of ₹173 crore in the previous year's corresponding period.
Sales growth
Highest-ever quarterly sales volume of 83,418 units
Ather Energy also reported its highest-ever quarterly sales volume of 83,418 units, a 76% increase from last year. For the entire fiscal year, the company sold 2.62 lakh units, a whopping 69% increase from the previous year. The company's growth was attributed to geographic expansion and a rapidly scaling retail footprint as well as strong performance of its family scooter Rizta.