Hero MotoCorp has approved an investment of up to ₹1,758 crore to acquire additional shares in electric two-wheeler maker Ather Energy, increasing its stake in the company to approximately 32.8% on a fully diluted basis. The transaction will lift Hero MotoCorp’s holding from 29.88% as of August 25, strengthening its position as Ather’s largest shareholder. The shares will be purchased from an existing Ather shareholder, although Hero has not disclosed the seller’s identity.
The cash transaction is expected to be completed by September 3, 2026. The latest investment comes just days after Ather allotted convertible warrants worth ₹960 crore to Hero MotoCorp under a separate preferential issue. Together, the transactions underline Hero’s continued commitment to Ather as competition intensifies in India’s electric two-wheeler market.
Hero MotoCorp Increases Ather Stake
Hero MotoCorp’s latest move involves buying existing shares rather than subscribing to a fresh issue from Ather. This distinction means the ₹1,758 crore payment will go to the selling shareholder rather than directly into Ather’s balance sheet.
The transaction will nevertheless materially increase Hero’s economic interest in Ather. On a fully diluted basis, the holding will rise by about 2.92 percentage points, from 29.88% to approximately 32.8%.
Key Details Of The Transaction
| Particular | Details |
|---|---|
| Investor | Hero MotoCorp |
| Target | Ather Energy |
| Additional investment | Up to ₹1,758 crore |
| Approx. U.S. dollar value | $184 million |
| Existing stake | 29.88% |
| Post-transaction stake | Approximately 32.8% |
| Increase in stake | About 2.92 percentage points |
| Transaction type | Purchase of existing shares |
| Consideration | Cash |
| Seller | Existing Ather shareholder, not disclosed |
| Expected completion | September 3, 2026 |
| Related-party transaction | No |
| Ather warrants allotted separately | ₹960 crore |
Hero said the purchase does not fall within the scope of related-party transactions. It also clarified that no promoter, promoter group entity or group company has an interest in the entity from which the shares are being acquired.
Ather’s Revenue Has More Than Doubled In Two Years
The investment comes as Ather has significantly expanded its business scale. The electric scooter maker’s turnover rose to ₹3,671.76 crore in FY2026 from ₹2,255 crore in FY2025 and ₹1,753.8 crore in FY2024.
That represents a substantial increase over the period, reflecting growth in electric scooter sales and expansion of the company’s broader ecosystem, including charging infrastructure and related energy services.
Ather Energy Turnover Trend
| Financial Year | Turnover |
|---|---|
| FY2024 | ₹1,753.8 crore |
| FY2025 | ₹2,255 crore |
| FY2026 | ₹3,671.76 crore |
| FY2024–FY2026 increase | ₹1,917.96 crore |
| Approx. increase | 109.4% |
Ather’s turnover increased by roughly 62.8% in FY2026 alone compared with FY2025. Over two financial years, revenue more than doubled, rising by about 109.4%.
The company is involved not only in designing, manufacturing, selling and servicing electric two-wheelers but also in charging infrastructure, software and the storage, distribution and management of electric power, including battery-related energy systems.
Hero’s Ather Investment Comes In Two Stages
The latest ₹1,758 crore share purchase follows another significant transaction between the two companies.
On August 25, Ather allotted convertible warrants worth ₹960 crore to Hero MotoCorp as part of a preferential issue. That transaction is separate from the latest purchase of existing shares.
The two investments therefore represent different mechanisms for increasing Hero’s exposure to Ather.
Hero MotoCorp’s Recent Ather Transactions
| Transaction | Amount | Impact |
|---|---|---|
| Convertible warrant investment | ₹960 crore | Preferential allotment by Ather |
| Latest share purchase | Up to ₹1,758 crore | Stake rises to ~32.8% |
| Combined announced investment | Up to ₹2,718 crore | Increased financial exposure |
The combined value of the two announced transactions is up to ₹2,718 crore, although they have different structures and should not be treated as a single capital infusion into Ather.
The ₹1,758 crore transaction specifically involves the purchase of shares from an existing investor. Consequently, Ather does not receive that amount as fresh operating capital from this particular transaction.
Why Hero Is Deepening Its Ather Bet
Hero MotoCorp has been an important shareholder in Ather for several years. Increasing its stake to approximately one-third of the company gives the country’s largest two-wheeler manufacturer by volume a stronger economic position in India’s electric mobility market.
The decision also comes as competition among electric scooter manufacturers is becoming more intense. Established manufacturers and newer EV companies are competing across pricing, range, product design, charging infrastructure, software and distribution.
For Hero, Ather provides exposure to an EV-focused company while allowing it to maintain a relationship with a specialist electric two-wheeler manufacturer rather than developing every part of the technology and product ecosystem internally.
Ather’s Business Ecosystem
- Electric scooter design and manufacturing
- Sales and after-sales servicing
- Software development
- Charging infrastructure
- Battery-related energy systems
- Electric power storage and management
- Ancillary electric mobility services
This broader ecosystem is important because the EV market increasingly depends on more than vehicle sales. Charging availability, software, battery management and after-sales support can influence customer adoption and long-term operating economics.
Ather’s Improving Financial Performance Adds To The Appeal
Ather’s recent financial trajectory provides additional context for Hero’s decision. While the company continues to operate in a highly competitive electric two-wheeler market, its revenue growth has been strong.
Ather also recently reported a sharply narrower first-quarter loss, with demand for its family-focused Rizta electric scooter contributing to the improvement.
The performance suggests that Ather is moving beyond its earlier positioning as a premium electric scooter startup and attempting to address a broader section of the consumer market.
For Hero MotoCorp, stronger Ather volumes could potentially increase the strategic value of its existing investment while giving the company greater participation in India’s transition toward electric two-wheelers.
What The 32.8% Stake Means
Hero’s move from 29.88% to approximately 32.8% represents a relatively small increase in percentage terms but a significant increase in its overall financial commitment.
The additional 2.92 percentage points means Hero will hold nearly one-third of Ather on a fully diluted basis.
Stake Comparison
Hero MotoCorp's Ather Stake
Before 29.88% ██████████████████████████████
After 32.80% █████████████████████████████████
Increase 2.92pp ███
The increase further consolidates Hero’s position as Ather’s biggest shareholder. It also signals that Hero continues to view Ather as strategically important despite the rapid evolution of India’s EV landscape.
Impact On India’s Electric Two-Wheeler Market
The transaction comes at a time when India’s electric two-wheeler market is attracting increasing investment from both established automakers and specialist EV companies.
Companies are competing to build scale while simultaneously managing battery costs, manufacturing expenses, distribution networks, charging infrastructure and technology investments.
Hero’s deeper commitment to Ather could therefore have implications beyond the two companies. It demonstrates that traditional two-wheeler manufacturers continue to see value in partnering with or investing in specialized EV businesses.
For Ather, having a major incumbent as its largest shareholder provides a potentially strong strategic relationship as the company expands its product range and market presence.
The Bigger Picture
Hero MotoCorp’s decision to raise its Ather stake to approximately 32.8% reinforces the strategic importance of electric mobility within India’s two-wheeler industry. The move follows Ather’s strong revenue expansion, with turnover rising from ₹1,753.8 crore in FY2024 to ₹3,671.76 crore in FY2026. At the same time, the separate ₹960 crore warrant investment shows that Hero is increasing its financial exposure to Ather through multiple routes.
The transaction also highlights the changing competitive structure of India’s EV market. Established manufacturers can use investments and strategic partnerships to gain exposure to specialized electric-vehicle technology and brands, while EV companies can benefit from the capital, industry expertise and market reach of larger automotive groups. Hero’s latest move suggests it sees Ather as an important part of its longer-term electric two-wheeler strategy.
Looking Ahead
The immediate milestone is the expected completion of the ₹1,758 crore share purchase by September 3, 2026. Once completed, Hero MotoCorp’s holding will rise to approximately 32.8% on a fully diluted basis. Investors will likely focus on how Ather’s revenue growth, loss reduction, product expansion and market share develop as the company scales in an increasingly competitive EV market.
For Hero MotoCorp, the larger question will be how effectively its investment in Ather contributes to its broader electric mobility strategy. Ather’s expanding revenue base and improving financial performance provide a stronger foundation than in its earlier growth phase, but the company still operates in a market where competition, pricing, battery economics and charging infrastructure will determine long-term profitability. The deeper investment indicates that Hero is prepared to maintain significant exposure to that opportunity as India’s two-wheeler market continues its transition toward electrification.
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