Hero Motors Ltd will increase its stake in Britain’s Hewland Engineering to 90 per cent from 51 per cent for approximately £600,000, strengthening its economic interest in the high-performance transmission and drivetrain business serving motorsport, electric vehicle and aerospace customers. The acquisition will give the newly listed Indian auto-component maker a larger share of Hewland’s future profits and losses, although the British subsidiary reported declining revenue and a net loss in FY26.
“Upon such acquisition of the aforesaid shares, the company’s stake in HEL shall increase from 51 per cent to 90 per cent,” Hero Motors said in its regulatory filing. The company will acquire 8,039 equity shares, representing a 39 per cent stake, from existing shareholders William Hewland and Siobhan Hewland. The transaction is expected to be completed in approximately six months.
Hero Motors already controls and consolidates Hewland’s financial performance. The acquisition will therefore increase its economic ownership without adding a new business or additional revenue to its consolidated accounts. The £600,000 consideration will go to the selling shareholders rather than provide fresh capital to Hewland.
Hewland specialises in designing and manufacturing high-performance gearboxes, transmissions and drivetrain systems for demanding applications, including motorsport and electric mobility. Its engineering capabilities complement Hero Motors’ manufacturing operations, potentially strengthening the Indian company’s ability to develop and supply advanced powertrain systems to international customers.
However, Hero’s latest filing does not identify any new customer contracts, manufacturing expansion or additional investment programme linked to the increased ownership.
Hewland’s revenue declined 15.9 per cent year-on-year (y-o-y) to ₹134.92 crore in FY26 from ₹160.49 crore in FY25, after ₹148.11 crore in FY24. The British subsidiary reported a net loss of ₹3.74 crore in FY26.
The acquisition announcement accompanied Hero Motors’ June-quarter financial results, which showed consolidated net profit rising 147 per cent y-o-y to ₹9.57 crore from ₹3.88 crore. Revenue increased 24.9 per cent y-o-y to ₹319.32 crore from ₹255.74 crore.
Profit attributable to shareholders of the parent increased 115 per cent y-o-y to ₹10.20 crore from ₹4.74 crore. However, quarter-on-quarter (q-o-q), consolidated net profit declined 32.6 per cent from ₹14.20 crore in the March quarter, while revenue slipped approximately 1 per cent q-o-q.
The sequential earnings decline coincided with a reversal in unallocated income, which moved from a positive ₹2.98 crore in March to an expense of ₹4.19 crore in June. The company did not explain the change in its filing.
Powertrain Solutions emerged as the principal earnings driver, with segment revenue increasing 25.8 per cent y-o-y to ₹170.53 crore. Segment profit before finance costs and tax surged 85 per cent y-o-y to ₹33.50 crore, lifting the segment profit margin to 19.6 per cent from 13.4 per cent a year earlier.
The Alloy and Metallics business also recorded stronger sales, with revenue rising 29.7 per cent y-o-y to ₹165.91 crore. Its segment loss narrowed to ₹2.55 crore from ₹3.66 crore a year earlier and ₹6.25 crore in the preceding quarter.
The auditor’s report showed that Hero Motors’ six subsidiaries together generated ₹58.24 crore in revenue but recorded a combined net loss of ₹11.78 crore during the June quarter, before consolidation adjustments. Hewland’s individual quarterly contribution was not disclosed.
The losses underline the challenge facing Hero Motors as it increases its exposure to its British engineering subsidiary. While the ownership increase will allow the company to retain a greater share of any future recovery in Hewland’s profitability, it will also increase the proportion of losses attributable to Hero’s shareholders if the business continues to underperform.
Hero Motors listed on September 23 following its ₹1,000-crore initial public offering, comprising ₹600 crore of fresh capital and a ₹400-crore offer for sale. The June-quarter results relate to the period before the IPO.
Published on October 14, 2026
