The new model comes with two variants priced at Rs 54,650 and Rs 57,500, respectively (ex-showroom).
It will compete with the likes of Suzuki Access 125, Honda Activa and Grazia, and TVS NTorq.
"The scooter market is witnessing a shift towards products with higher engine capacity. The 125-cc segment in particular has been expanding at a rapid pace witnessing a growth of over 75 per cent year to date this fiscal," Hero MotoCorp Head of Global Product Planning Malo Le Masson told reporters.
The 125 cc segment is therefore is a focus area for the company, he added.
"We are strategically following a multi-brand approach in this space. In keeping with this strategy we have debuted today in this category with the Destini 125 and will soon introduce another scooter towards the end of the year," Masson said.
The 125-cc scooter market is estimated to be around 100,000 units per month.
Hero MotoCorp Chief Technology Officer Markus Braunsperger said the new model has been developed completely in-house and comes with features like idle stop-start feature, a first in scooters.
"We have a strong pipeline of new products in both scooter and premium motorcycle segments which we will launch in the coming months," he added.
Hero MotoCorp will start retailing Destini from Delhi/NCR from Tuesday, while sales in other parts of the country would begin in the next 3-4 weeks.
"We are confident that the Destini 125 will be a strong contender for us in growing our presence in this category," Hero MotoCorp Head of Sales, Customer Care and Parts Business Sanjay Bhan said.
When asked about sales in the ongoing festive season, he added: "The first few days have not been so phenomenal. It has rather been tepid due to various ongoing turbulences. But, we expect sales to firm up going ahead".