Hero MotoCorp to Increase Stake in Ather Energy

Hero MotoCorp Limited disclosed on August 27, 2026 that its Committee of Directors has approved the purchase of additional equity shares in Ather Energy Limited, an associate company in which it already holds a significant stake. The decision was taken at a board committee meeting held the same day and was disclosed to stock exchanges in accordance with regulatory requirements.

The acquisition is valued at up to ₹1,758 crore and will be funded entirely through cash consideration. Hero MotoCorp is purchasing the shares from an existing shareholder of Ather, rather than through a fresh issue of shares by the company. The transaction is expected to close by September 3, 2026, and does not require any governmental or regulatory approvals, according to the filing.

As of August 25, 2026, Hero MotoCorp held 29.88% of Ather's share capital on a fully diluted basis. Following the completion of this purchase, that shareholding is expected to rise to approximately 32.8% on the same basis, consolidating Hero MotoCorp's position as one of Ather's largest shareholders.

Ather Energy is a publicly listed company incorporated in India on October 21, 2013, and is listed on both BSE Limited and the National Stock Exchange of India. The company's core business spans the design, manufacture, production, sale, and servicing of electric two-wheelers, along with software development and management related to electric automobiles and charging infrastructure. Beyond vehicles, Ather also operates in the storage, distribution, and management of electric power, including battery-based energy systems, and provides other ancillary services. The company has built a wide presence across the country.

Ather's financial performance has shown consistent growth over the past three years. Its turnover stood at ₹1,753.8 crore for the financial year ended March 31, 2024, rising to ₹2,255 crore in FY2025, and climbing further to ₹3,671.76 crore in FY2026. The growth trajectory reflects expanding demand for electric two-wheelers in India, a segment that has seen increased consumer adoption and policy support in recent years.

Hero MotoCorp, one of the world's largest two-wheeler manufacturers by volume, has been an investor in Ather for several years. The two companies have maintained an associate relationship, with Hero MotoCorp's backing providing Ather with capital support as the EV startup scaled its operations and expanded its product lineup and charging network across Indian cities.