Atul Auto invested ₹18.34 crore in Khushbu Auto Finance through a rights issue, taking its cumulative investment in the company to ₹96.15 crore.

Investment details

The transaction was executed via a rights issue, a mechanism through which existing shareholders are offered additional shares in proportion to their current holdings. The latest infusion of ₹18.34 crore adds to Atul Auto's prior commitments in Khushbu Auto Finance, bringing the total investment to ₹96.15 crore.

Subsidiary profile and financials

Khushbu Auto Finance Limited (KAFL) is a wholly owned subsidiary of Atul Auto and operates as a Non-Banking Financial Company categorized as an Investment and Credit Company (NBFC-ICC). It serves as a captive finance arm, primarily financing three-wheelers manufactured by Atul Auto.

As on March 31, 2026, KAFL reported a net worth of ₹14,067 lakh and a turnover of ₹4,583 lakh. The entity posted a profit after tax of ₹294 lakh for FY26.

Transaction specifics

Atul Auto subscribed to 91,40,000 equity shares of KAFL with a face value of ₹10 each at an issue price of ₹20.07 per share. The allotment of these shares was completed on September 30, 2026. Following this infusion, Atul Auto’s shareholding percentage in KAFL remains unchanged at 100%.

The proceeds from this rights issue will be utilized by KAFL to redeem Redeemable Preference Shares (PPS) issued to Atul Auto’s promoters and promoter group in 2021. The transaction is conducted at arm’s length and does not constitute a related party transaction for the listed entity, although the promoter group holds PPS in the subsidiary.

Atul Auto reported total sales of 4,104 units in September, compared to 3,503 units in the same month a year ago, marking a 17.16% YoY improvement in volumes.

Sales performance overview

The month-on-month sales data reflects a pickup in unit dispatches for the three-wheeler manufacturer. The following table summarises the YoY comparison for September total sales:

Segment-wise breakdown

A detailed breakdown reveals that the growth was primarily driven by internal combustion (IC) engine vehicles. Domestic IC engine sales surged 28.07% YoY to 2,920 units, while domestic electric vehicle (EV) sales rose 15.20% to 796 units. Including exports, total IC engine sales grew 17.64% to 3,308 units, and total EV sales remained at 796 units.

Year-to-date trends

For the fiscal year-to-date (FY26-27), Atul Auto has sold 21,794 units in total, a significant increase from 16,178 units in the corresponding period of FY25-26, representing a 34.71% YoY growth. The IC engine segment continues to dominate the growth trajectory with a 45.14% YoY rise in YTD sales, whereas EV sales have remained largely flat with a marginal 0.32% increase.