Hero MotoCorp invests ₹1,758 crore to lift Ather Energy stake to 32.8%

Hero MotoCorp has acquired 1.18 crore Ather Energy shares for ₹1,758 crore, increasing its holding from 29.48% to about 32.8%. The capital strengthens Ather’s capacity for electric two-wheeler expansion, product development, R&D and manufacturing.

— Source publishedFri, 28 Aug, 2026, 20:11 IST·First seen Fri, 28 Aug, 2026, 21:12 IST·Source Inc42

What happened

Hero MotoCorp completed a ₹1,758 crore purchase of 1.18 crore Ather Energy shares, lifting its holding to about 32.8%. The investment strengthens Ather’s

Key facts

  • Hero MotoCorp bought 1.18 crore Ather equity shares for ₹1,758 crore
  • Hero MotoCorp stake in Ather increased to about 32.8% from 29.48% as of June 2026
  • Hero had earlier announced an additional ₹1,000 crore investment
  • Ather plans to raise up to ₹2,500 crore for expansion, R&D, products and manufacturing
  • Ather raised about ₹1,300 crore through QIP in July and approved a further ₹1,200 crore preferential issue
  • Ather Q1 FY27 net loss narrowed 71% YoY to ₹51.1 crore
  • Ather Q1 FY27 operating revenue rose 89% YoY to ₹1,216.9 crore
  • Ather shares closed 9.3% higher at ₹1,612; market capitalisation was ₹63,592.30 crore

Why this matters

Hero’s additional 3.3-point stake signals a strategic commitment to Ather as its core EV platform, potentially limiting room for competing partnerships or acquisitions.

What to watch

  • Ather quarterly registrations, market-share changes and delivery growth relative to Ola Electric, TVS iQube and Bajaj Chetak.
  • New Ather product launches, especially mass-market or lower-price models, and announced production-capacity additions.
  • Evidence of Hero-Ather operational integration, including shared suppliers, dealerships, service centres or technology programs.
  • Ather gross-margin trajectory, cash burn and any additional fundraising or IPO-related disclosures.
  • Changes to Indian EV incentives, state-level registration policies, battery-safety rules or charging standards.
  • Ather is likely to prioritize additional experience centres, service coverage and charging-network density in high-adoption urban markets.
  • Expect investment in lower-priced or broader-segment scooter platforms, alongside software, battery-management and connected-vehicle upgrades.
  • Hero may deepen commercial collaboration with Ather on procurement, components, distribution infrastructure and manufacturing efficiencies while preserving Ather's standalone brand.
  • Competitors may respond with price cuts, financing offers, longer warranties and faster product-refresh cycles in the premium scooter segment.

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