Electric two-wheeler maker Ather Energy's wholly owned subsidiary Ather Insurance has received regulatory approval to distribute and service insurance policies, as the company looks to diversify revenue and generate recurring income from its existing customer base.

The Insurance Regulatory and Development Authority of India granted the subsidiary a certificate of registration on October 15 to act as a corporate agent (composite), Ather Energy said in a stock exchange filing on Thursday. The registration covers life, general and health insurance.

The approval is for insurance distribution and servicing, rather than underwriting policies. Ather, in its filings, said the move would diversify its revenue streams. It did not disclose insurer partnerships or quantify the revenue it expects from the business.

The registration remains valid from October 15, subject to payment of an annual fee, unless suspended or cancelled by the regulator, according to the filing.

Ather ranked third in India's electric two-wheeler market in September, with 30,479 registrations and a 14.71% share, according to Vahan data. TVS Motor led with 26.06%, followed by Bajaj Auto at 23.36%. Ola Electric had a 6.49% share.

For FY25, Ather reported revenue from operations of Rs 2,255 crore, up about 29% from Rs 1,753.8 crore a year earlier. The company’s net loss narrowed to Rs 812.3 crore from Rs 1,059.7 crore. Scooter sales rose 42% to 155,394 units from 109,577 in FY24. Non-vehicle sales accounted for 12% of revenue in FY25, compared with 10% a year earlier.