Rs 1,758 Crore Investment: This Large-Cap Auto Stock Raises Stake in Ather Energy to 32.8%; Check Details

On Friday, Indian equity benchmark NIFTY traded higher, gaining 56.15 points or 0.23 per cent to 24,147.00. Amid these positive markets, Hero MotoCorp was trading at Rs 5,632, up Rs 82 or 1.48 per cent. The stock outperformed the benchmark during the session following the company’s disclosure regarding its additional investment in Ather Energy.

Hero MotoCorp to Invest Up to Rs 1,758 Crore in Ather

Hero MotoCorp’s Committee of Directors, at its meeting held on August 27, 2026, approved the purchase of additional equity shares of Ather Energy Limited, which is an associate company of Hero MotoCorp. The proposed transaction involves purchasing shares from an existing shareholder of Ather.

The acquisition will be made through cash consideration, with the total cost of acquisition estimated at up to Rs 1,758 crore. The transaction is expected to be completed by September 3, 2026. Hero MotoCorp has stated that no governmental or regulatory approvals are required for the purchase of the additional shares.
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Hero MotoCorp’s Ather Stake to Rise

The latest investment will further increase Hero MotoCorp’s ownership in Ather Energy. As of August 25, 2026, Hero MotoCorp held a 29.88 per cent stake in Ather on a fully diluted basis.

Following the proposed purchase, Hero MotoCorp’s holding in Ather is expected to increase to up to approximately 32.8 per cent on a fully diluted basis. This represents an increase of up to around 2.92 percentage points in Hero MotoCorp’s stake

The increase reinforces Hero MotoCorp’s existing strategic relationship with Ather and gives the two-wheeler major a larger economic interest in the electric vehicle company.

Ather Energy’s Business and Rising Turnover

Ather Energy is engaged in designing, manufacturing, producing, selling and servicing electric two-wheelers, along with software development and management related to electric automobiles and charging infrastructure. Its business also includes storage, distribution and management of electric power, including energy in the form of batteries, and other ancillary services.

Ather has also recorded a significant increase in turnover over the past three financial years. Its turnover stood at Rs 1,753.8 crore for FY2024, increased to Rs 2,255 crore in FY2025 and further rose to Rs 3,671.76 crore in FY2026.

Based on these figures, Ather’s turnover increased by around 28.6 per cent in FY2025 and approximately 62.8 per cent in FY2026. The latest investment therefore comes as Ather continues to expand its business scale in the electric two-wheeler market.

Strengthening Presence in Electric Two-Wheelers

Hero MotoCorp is already an existing shareholder in Ather, and the latest transaction represents an increase in that existing investment rather than an entry into a new business relationship. The company has described the transaction as the purchase of additional shares in Ather.

For Hero MotoCorp, the move provides greater exposure to the electric two-wheeler segment while maintaining its existing strategic association with Ather. The increased stake also comes at a time when Ather's reported turnover has grown substantially over the last three financial years.

Transaction Not Classified as Related Party Transaction

Hero MotoCorp disclosed that the purchase of additional shares does not fall within the purview of related party transactions. The company also stated that no promoter, promoter group or group company of Hero MotoCorp has any interest in the entity in which the additional investment is being made.

The transaction is being undertaken in cash and is proposed to be completed by September 3, 2026, subject to the applicable transaction process.

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Disclaimer: The article is for informational purposes only and not investment advice.