Highlights
Hero MotoCorp Invests in Ather Energy
Hero MotoCorp has announced an additional investment of up to Rs 1,000 crore in the electric two-wheeler manufacturer Ather Energy, solidifying its commitment to the Bengaluru-based EV firm. Following this news, Ather Energy’s shares surged by over 9%, reaching a record high of Rs 1,313.8 on Wednesday.
Investment Details
A stock exchange filing on Tuesday stated that Hero MotoCorp’s Committee of Directors (COD) has approved the subscription of equity shares or other eligible securities of Ather via a preferential allotment. Currently, Hero holds a 29.48% stake in Ather Energy on a fully diluted basis as of June 30, 2026. The company clarified that the ultimate change in its ownership will depend on the pricing and structure of the proposed preferential issue. This investment will be in cash and is anticipated to be finalised within 15 days of Ather obtaining the necessary approvals.
Market Reaction
The announcement has driven a notable rally in Ather Energy’s stock. Shares of the electric vehicle manufacturer rose over 9% during trading on Wednesday, achieving an all-time high of Rs 1,313.8 on the NSE. This development follows Ather’s board approval to raise up to Rs 2,500 crore through a qualified institutional placement (QIP), rights issue, preferential allotment, or other permitted methods. The proceeds from this fundraising are earmarked for business expansion, product development, investments in subsidiaries, and other corporate initiatives.
Market Position
Data from Vahan indicates that Ather Energy maintained its third position in India’s electric two-wheeler market in June, achieving 31,188 registrations and a 16.12% market share. This marks a 9.4% increase in sales from 28,512 units in May, reinforcing its standing among the leading players in the sector.
Financial Performance
The fundraising plan coincides with an upturn in financial performance. In Q4 FY26, Ather’s operating revenue surged by 74% year-on-year, reaching Rs 1,175 crore, while its net loss reduced by 57% to Rs 100 crore. For the fiscal year 2026, the company reported revenue of Rs 3,672 crore, a significant increase from Rs 2,255 crore in FY25.
Competitive Landscape
Ather’s upcoming fundraising follows a similar move by competitor Ola Electric, which secured Rs 780 crore through a QIP. This issue garnered strong interest from investors, surpassing the initial Rs 500 crore target by 56%. The fresh capital is expected to bolster Ather’s balance sheet as it enhances operations, expands distribution, and gears up for its next growth phase in the swiftly changing electric mobility landscape.
As of 11:30 AM today, Ather’s shares are trading at around Rs 1,298, with a total market capitalization of Rs 49,750 crore ($5.23 billion).