Hero MotoCorp to invest up to Rs 1,758 crore in Ather, raising stake to 32.8%

Hero MotoCorp plans to deepen its Ather Energy holding as the electric two-wheeler maker posts positive Q1 FY27 EBITDA, 80.5% delivery growth and a 71% year-on-year reduction in net loss. Ather shares rose more than 7% following the announcement.

— Source publishedFri, 28 Aug, 2026, 12:26 IST·First seen Fri, 28 Aug, 2026, 12:39 IST·Source YourStory

What happened

Hero MotoCorp will invest up to Rs 1,758 crore to buy additional Ather Energy shares, lifting its stake to 32.8%. Ather shares rose over 7%, while the EV maker

Key facts

  • Hero MotoCorp plans to invest up to Rs 1,758 crore
  • Hero MotoCorp ownership in Ather Energy will rise to 32.8%
  • Ather Energy shares rose over 7% to Rs 1,603.10 from Rs 1,495.30
  • Q1 FY27 net loss declined 71% year-on-year to Rs 51 crore from Rs 178 crore
  • Q1 FY27 consolidated total income rose 87.2% year-on-year to Rs 1,260 crore
  • Q1 FY27 consolidated EBITDA was positive at Rs 9 crore versus a Rs 106 crore loss in Q1 FY26
  • Q1 deliveries rose 80.5% year-on-year to 83,173 units

Why this matters

Raising its Ather holding to 32.8% gives Hero deeper strategic exposure to electric two-wheelers while preserving Ather as a distinct growth platform.

What to watch

  • Completion terms, timing and any conditions attached to Hero's Rs 1,758 crore investment.
  • Ather's quarterly EBITDA trajectory, gross margin, cash burn and whether positive Q1 FY27 EBITDA is sustained.
  • Delivery growth relative to retail expansion, inventory levels and waiting periods for major scooter models.
  • Store additions, service turnaround times, charging-network growth and customer satisfaction indicators.
  • Evidence of Hero-Ather procurement, manufacturing, financing or distribution integration.
  • Monthly electric two-wheeler registrations and market-share changes versus Ola Electric, TVS, Bajaj and other entrants.
  • Price cuts, subsidy-policy changes, battery-cell costs and financing-rate movements that could pressure EV affordability or margins.
  • Ather is likely to accelerate store, service-centre and fast-charging expansion in high-density urban and tier-2 EV markets.
  • Hero and Ather may expand joint procurement, battery/component sourcing, manufacturing support and shared vendor negotiations to reduce per-unit costs.
  • Ather may increase marketing, financing partnerships and exchange offers to convert Hero's large ICE two-wheeler customer base into EV buyers.
  • Hero may seek greater governance influence, potentially including enhanced board representation and clearer milestones tied to capital deployment.
  • Competitors may respond with promotional financing, price actions, extended warranties or faster retail expansion in Ather's strongest markets.

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