Hero MotoCorp’s strategy of building multiple growth engines beyond its traditional motorcycle business is producing sharply different financial outcomes.Hero MotoCorp’s investments beyond its core motorcycle business accounted for about ₹325 crore of attributable losses in FY2025-26, revealing sharply different trajectories across the businesses the country’s largest two-wheeler maker is backing to build its next phase of growth.Hero’s share of losses stood at ₹157.22 crore from Ather Energy, ₹107.79 crore from Euler Motors and ₹60.04 crore from Hero FinCorp. The ₹325.05-crore figure represents Hero MotoCorp’s proportionate share of losses from these associates under equity accounting, rather than their combined underlying losses.Ather begins to show operating leverageAther delivered the strongest financial improvement within Hero’s future portfolio. Revenue rose 62.8 per cent to ₹3,671.76 crore from ₹2,255 crore, while net loss narrowed 36.3 per cent to ₹517.17 crore from ₹812.30 crore, indicating that revenue growth is beginning to outpace costs as the electric scooter maker scales operations. Hero invested another ₹123.83 crore in Ather during the year, while its shareholding declined to 30.07 per cent from 39.60 per cent following the company’s initial public offering.Zero ownership shrinks, partnership staysThe annual report also reveals a significant change in Hero’s financial relationship with California-based Zero Motorcycles, its technology partner for premium electric motorcycles.Hero’s stake was diluted sharply to 0.8 per cent from 6.92 per cent, resulting in a ₹222-crore fair-value loss and reducing the carrying value of the investment 92.2 per cent to ₹18.74 crore from ₹240.96 crore. The dilution followed a corporate restructuring and fresh capital infusion at Zero Motorcycles.The change, however, does not signal the end of the partnership. Hero continues to identify Zero as its technology partner for premium electric motorcycles, suggesting that the financial restructuring has altered the ownership structure rather than the product development collaboration. Industry observers note that several premium electric motorcycle makers have sought fresh capital amid slower-than-expected EV adoption in North America and Europe, often leading to dilution of existing shareholders.Euler scales, FinCorp weakensThe picture is more mixed elsewhere. Euler Motors more than doubled revenue to ₹402.02 crore from ₹191 crore, while vehicle sales increased 81 per cent to 7,576 units from about 4,186 units after launching new electric commercial vehicles. However, it still reported a ₹314.75-crore loss, underlining that rapid expansion has yet to translate into profitability. Hero invested ₹720 crore in Euler during FY26 through equity and preference shares.The sharpest deterioration came from Hero FinCorp. Revenue declined 2.5 per cent to ₹9,583.26 crore from ₹9,832.73 crore, while the lender swung to a ₹226.01-crore loss from a ₹109.95-crore profit, a reversal of nearly ₹336 crore. Hero’s attributable share of the loss stood at ₹60.04 crore, highlighting pressure in one of the group’s strategically important financing businesses.Core business funds the futureThe losses stand in sharp contrast to Hero MotoCorp’s own operating performance.The standalone business generated ₹46,830 crore in revenue, ₹6,871 crore in EBITDA, ₹5,268 crore in profit after tax and ₹8,315 crore in operating cash flow during FY26.The annual report suggests Hero’s diversification strategy is entering a more differentiated phase. Ather is beginning to demonstrate operating leverage; Zero remains a strategic technology partner despite a dramatic reduction in equity ownership; Euler continues to prioritise scale over profitability; and Hero FinCorp has moved in the opposite direction.Published on July 14, 2026