Hero MotoCorp to Invest Up to ₹1,758 Crore in Ather Energy, Raises Stake to Nearly 32.8%
Hero MotoCorp Limited has approved an additional investment in its associate company Ather Energy Limited, strengthening its strategic exposure to India’s growing electric two-wheeler market.
The company’s Committee of Directors approved the purchase of additional equity shares of Ather on August 27, 2026. The transaction is expected to increase Hero MotoCorp’s holding in Ather from 29.88% to up to approximately 32.8% on a fully diluted basis.
Hero MotoCorp to Invest Up to ₹1,758 Crore
Hero MotoCorp will acquire additional shares of Ather Energy for a cash consideration of up to approximately ₹1,758 crore.
The shares are being purchased from an existing shareholder of Ather.
The transaction is expected to be completed by September 3, 2026, according to the company’s regulatory filing.
Hero MotoCorp stated that no governmental or regulatory approvals are required for the proposed purchase.
Hero MotoCorp’s Stake in Ather to Rise to 32.8%
As of August 25, 2026, Hero MotoCorp held approximately 29.88% of Ather Energy on a fully diluted basis.
Following the additional share purchase, Hero MotoCorp’s holding is expected to increase to up to approximately 32.8%.
This represents a further strengthening of Hero MotoCorp’s strategic position in Ather, which is focused on electric two-wheelers and associated charging infrastructure.
Ather Energy’s Business
Ather Energy is engaged in the design, manufacturing, sale and servicing of electric two-wheelers.
The company also operates its own charging infrastructure and is involved in the storage, distribution and management of electric power, including energy stored in batteries.
Ather also provides related ancillary services and has a presence across India.
The company was incorporated in India on October 21, 2013, and is listed on both the BSE and NSE.
Ather’s Revenue Has More Than Doubled in Two Years
Ather has recorded significant growth in turnover over the past three financial years.
Its turnover stood at:
- FY2024: ₹1,753.8 crore
- FY2025: ₹2,255 crore
- FY2026: ₹3,671.76 crore
Ather’s FY2026 turnover therefore increased substantially from the previous year, highlighting the company’s expanding business scale.
The growth in Ather’s turnover is an important factor behind Hero MotoCorp’s continued strategic investment in the electric two-wheeler business.
Why This Investment Matters for Hero MotoCorp
The additional investment gives Hero MotoCorp greater exposure to the rapidly developing electric vehicle segment.
Hero MotoCorp has historically been a major player in the conventional two-wheeler market, while Ather provides the company with a significant strategic presence in electric scooters and related charging infrastructure.
Increasing the stake to nearly 32.8% could further strengthen the relationship between the two companies and provide Hero MotoCorp with greater participation in Ather’s future growth.
No Related Party Transaction
According to Hero MotoCorp’s disclosure, the acquisition does not fall within the purview of related party transactions.
The company also stated that no promoter, promoter group or group company of Hero MotoCorp has an interest in Ather in relation to the additional investment.
The transaction will be completed through a cash consideration.
Ather’s Growth Story
Ather’s turnover has increased from ₹1,753.8 crore in FY2024 to ₹3,671.76 crore in FY2026.
This represents more than a doubling of turnover over two years and indicates a significant expansion in the company’s business scale.
For Hero MotoCorp, increasing its stake in Ather could therefore be viewed as a long-term strategic move to strengthen its position in the electric mobility ecosystem.
Key Details of Hero MotoCorp–Ather Investment
Target company: Ather Energy Limited
Investment by: Hero MotoCorp Limited
Investment amount: Up to approximately ₹1,758 crore
Current Hero MotoCorp stake: 29.88% on a fully diluted basis
Proposed stake: Up to approximately 32.8%
Consideration: Cash
Expected completion: By September 3, 2026
Ather FY2026 turnover: ₹3,671.76 crore
Industry: Electric two-wheelers, charging infrastructure and energy-related services
Investor Takeaway
Hero MotoCorp’s proposed investment of up to ₹1,758 crore represents a meaningful increase in its exposure to Ather Energy and the electric two-wheeler market.
The transaction comes as Ather’s business continues to expand, with turnover rising to ₹3,671.76 crore in FY2026 from ₹2,255 crore in FY2025.
For Hero MotoCorp investors, the key point to watch will be whether Ather’s continued scale-up translates into stronger financial performance and enhances the long-term value of Hero MotoCorp’s strategic stake.
The transaction is subject to completion of the share purchase, which the company expects by September 3, 2026.
Disclaimer: This article is based on information disclosed by Hero MotoCorp Limited in its regulatory filing dated August 27, 2026. It is intended for informational and educational purposes only and should not be considered investment advice or a recommendation to buy or sell any security.