Hero MotoCorp has acquired an additional 1.18 crore shares of Ather Energy via an open-market transaction worth ₹1,758 crore, increasing its total stake to approximately 32.8%. This move follows the automaker’s recent announcement to infuse ₹1,000 crore more into the EV firm as it accelerates expansion and product development.
- Hero MotoCorp’s stake in Ather rises from 29.48% to 32.8%
- Ather’s Q1 FY27 net loss narrowed 71% with 89% revenue growth
- Ather shares hit 52-week high following stake increase announcement
What happened
Hero MotoCorp bought an additional 1.18 crore shares in Ather Energy through an open-market transaction worth ₹1,758 crore, as per its filing with stock exchanges. The shares were sold to Hero MotoCorp by the government of Singapore in a block deal at ₹1,480 each. As a result, Hero’s stake in Ather rose from 29.48% in June 2026 to about 32.8%.
This purchase comes shortly after Hero MotoCorp committed an additional ₹1,000 crore investment in Ather. The electric scooter maker is actively raising funds including a ₹1,300 crore qualified institutional placement earlier this year and a ₹1,200 crore preferential issue to strengthen its finances and support expansion plans.
Why it matters
Hero MotoCorp’s increased stake in Ather highlights its strategic push into the electric two-wheeler segment, reflecting confidence in Ather’s growth and market potential. The EV market in India is becoming increasingly competitive, and strengthening its relationship with a leading EV player helps Hero solidify its position.
Ather has demonstrated strong financial improvements, reporting an 89% rise in operating revenue and a 71% reduction in net loss in Q1 FY27. Additionally, the company’s diversified revenue streams, including software subscriptions and after-sales services, are growing, indicating a sustainable business model beyond just vehicle sales.
What to watch next
Market observers will be keen to track how Hero MotoCorp leverages this increased stake to influence Ather’s product development and market expansion, especially as Ather plans to use newly raised funds for R&D and manufacturing capacity boosts. The company’s ability to maintain strong revenue growth while narrowing losses will be critical.
Additionally, monitoring Ather’s stock performance and valuation will provide further insight into investor sentiment. The recent jump to a 52-week high following this transaction shows optimism, but the company must sustain growth amid intensifying competition in India's electric vehicle market.