Tractors
Trucks
- Find by Budget
- Find by Type
Buses
- Find by Budget
- Find by Type
English
New DelhiEuler Motors posted a positive FY26 net worth despite higher losses, driven by fresh funding, accounting changes, revenue growth, Hero MotoCorp's backing, and continued investments in expansion and innovation.
By Robin Kumar Attri
Net worth turns positive at Rs 421.30 crore in FY26.
Revenue more than doubles to Rs 432.96 crore.
Raised over Rs 1,075 crore through preference shares.
Hero MotoCorp strengthens support with Series D investment.
R&D, marketing, and workforce spending increased significantly.
Euler Motors has reported a major financial turnaround for FY26 by moving from a negative net worth to a positive one, even as the company continued to post higher losses. The commercial electric vehicle (E-CV) manufacturer achieved this milestone through fresh investments, accounting changes, and strong revenue growth while continuing to invest heavily in manufacturing, research, marketing, and workforce expansion.
Commercial electric vehicle startup Euler Motors Private Limited has successfully brought its balance sheet back into positive territory during the financial year ended March 31, 2026.
According to the company's latest standalone financial statements, Euler Motors recorded a positive net worth of Rs 421.30 crore in FY26. This marks a significant improvement compared to FY25, when the company reported a negative net worth of Rs 576.38 crore.
The achievement comes despite the company remaining in an aggressive growth phase and reporting higher operational losses.
The improvement in net worth was not the result of profitability. Instead, it was mainly driven by fresh capital infusion and a reclassification of investor agreements under Indian Accounting Standards (Ind AS).
During FY26, Euler Motors raised more than Rs 1,075 crore through the issuance of preference shares. The additional funding helped the company maintain liquidity while expanding its manufacturing operations at its Palwal, Haryana facility.
Another major factor behind the turnaround was the revision of the terms governing Compulsorily Convertible Preference Shares (CCPS).
Previously, these investor shares were treated as financial liabilities because investors had certain rights to sell them back to the company. After Euler Motors and its investors mutually revised these agreements in FY26, nearly Rs 1,306 crore was reclassified from liabilities to equity. This accounting change significantly reduced liabilities on the balance sheet and resulted in a substantial increase in the company's net worth.
A key contributor to Euler Motors' financial stability is Hero MotoCorp Limited, which now holds significant influence over the company.
Hero MotoCorp actively participated in Euler's FY26 fundraising by subscribing to Series D Equity Shares and Series D Preference Shares.
Apart from providing financial support, Hero MotoCorp's involvement strengthens Euler Motors' position in the commercial EV market by offering better access to supply chains, industry expertise, and distribution capabilities-advantages that are increasingly important as competition intensifies.
Euler Motors also delivered strong operational growth during FY26.
The company's consolidated revenue from operations increased from Rs 215.85 crore in FY25 to Rs 432.96 crore in FY26, more than doubling within a year.
According to the management, the strong revenue growth was supported by:
Higher sales of electric three-wheelers and four-wheelers.
Improved collection cycles.
Continued expansion of business operations.
The company's liquidity position also improved considerably. Its current ratio, which measures the ability to meet short-term financial obligations, increased from 1.15 in FY25 to 2.97 in FY26, indicating a much stronger cash position.
Despite strong revenue growth and a healthier balance sheet, Euler Motors remains in the investment-heavy stage common among fast-growing EV startups.
The company reported a consolidated net loss of Rs 314.75 crore during FY26 as it continued to spend aggressively on expansion.
Total expenses rose sharply from Rs 464.10 crore in FY25 to Rs 747.54 crore in FY26.
Major areas of increased spending included:
Research and Development (R&D): Increased from Rs 7.17 crore to Rs 14.68 crore.
Marketing expenses: Nearly quadrupled to Rs 50.79 crore.
Employee costs: Rose to Rs 103.88 crore as the company expanded its engineering teams and regional workforce.
These investments reflect Euler Motors' strategy of strengthening product development, expanding market presence, and building manufacturing capabilities for future growth.
Euler Motors' FY26 performance highlights the changing landscape of India's commercial electric vehicle industry.
Although the company is still reporting losses, its improved balance sheet, stronger liquidity, and rapid revenue growth indicate that it has strengthened its financial foundation while continuing to scale operations.
With the backing of Hero MotoCorp, a positive net worth, and continued investment in manufacturing and innovation, Euler Motors appears better positioned to compete in the capital-intensive commercial EV market.
As the industry moves toward consolidation, companies with strong financial support and established strategic partners are expected to have a greater chance of sustaining growth and progressing toward long-term profitability.
Euler Motors FY26 financial performance reflects a company focused on long-term growth rather than short-term profitability. While losses widened due to higher investments in manufacturing, R&D, marketing, and workforce expansion, strong revenue growth, improved liquidity, fresh capital infusion, and a positive net worth have strengthened its financial position. Backed by Hero MotoCorp, the commercial EV maker is now better equipped to compete in India's rapidly evolving electric mobility market.
Add CMV360 on Google
