Hero MotoCorp to raise stake in Ather Energy with ₹1,000 crore additional investment

Hero MotoCorp on Tuesday announced that its board has approved an additional investment of up to ₹1,000 crore in electric two-wheeler maker Ather Energy, Hero will invest through a preferential allotment, under which Ather will issue new shares or convertible securities to the former, post the regulatory and shareholder approvals.

“The investment is being made in the form of subscription to additional Securities of Ather for up to ₹1,000 crore,” the company said in its regulatory filings.

India’s largest two-wheeler manufacturer currently owns (as of June 30, 2026) 29.48 per cent stake in Ather on a fully diluted basis. The investment will be done entirely in cash and will be finished within 15 days of Ather receiving the final regulatory and shareholder approvals.

The eventual stake of Hero MotoCorp in the electric two-wheeler maker will be known once Ather finalises the terms of the preferential allotment, said the filing.

In the last fiscal, Ather Energy narrowed Q4 FY26 loss to ₹100 crore and revenue from operations for the quarter rose 74 per cent YoY to ₹1,175 crore, up from ₹676 crore in Q4 FY25.

The investment will be infused in designing and manufacturing of ‘smart electric vehicles’ and associated charging infrastructure and storage, distribution and management of electric power (including energy in the form of batteries), said the company.

Hero MotoCorp described the transaction as a strategic investment in its existing associate company, which designs, manufactures and sells electric two-wheelers, while also operating charging infrastructure and offering battery and energy management services.